More than 20,000 offline retailers in the country have told top smartphone companies Xiaomi and Samsung that they will stop selling their brands if they do not stop giving huge discounts and support to ecommerce companies. On January 10, the All India Mobile Retailers Association said in a separate letter to these two companies that if online platforms continue to be exempted, then small retailers can also sell mobile phones at ‘online price’ by reducing the price difference. ET has seen a copy of this letter. It has been written to Samsung India’s Senior Vice President (Mobile Business) Mohandeep Singh and Xiaomi’s Director (Offline Sales Operations) Sunil Baby. The letter stated, ‘Just as brands can control offline MOP (market operating price), they should also keep the discounts offered on online platforms.’ Offline mobile trader brands and ecommerce like Flipkart, Amazon Opposing Exclusive Deals Between Platforms. They demand that the phones be launched simultaneously both online and offline and at an equal price.
‘Products will not back down from boycott’
The letter states, ‘We feel, now brands should take our business seriously, otherwise retailers and associations will not hold back from boycotting their products. We are not in favor of any kind of pressure, but given the current situation, if we need it, we will not back down. ”Samsung and Xiaomi declined to answer ET’s questions. Retailer associations have been consistently opposing brands’ exclusive deals, cashback offers and mobile online launching strategy 15-20 days ago.
So now top companies’ smartphones will be available at cheap pricesSuch complaints have been placed many times in front of mobile manufacturers. Vivo, Oppo and Realme assured their retail partners that they will launch products and variants on both channels simultaneously and at the same price.
AIMRA President Arvinder Khurana said, “Apple does not have a separate strategy in its sales channels. At the same time, OnePlus has recently started selling in offline channels. AIMRA has also written a letter to eliminate exclusivity altogether. ”He said that top selling brands Xiaomi and Samsung have been the cause of trouble for a long time. Khurana said, “Xiaomi in particular launches its products online 21 days in advance. After the strong sales on the online platform, retail shoppers find it difficult to sell their products as they are no longer attractive. ”He claimed that around 30 smartphone models benefited from preferential sales and exclusivity during the festive season.