Highlights

  • Low-profit margins impacting brick-and-mortar stores.

  • Delayed warranty claims affect brand loyalty and sales.

  • Logistical challenges lead to inventory buildup and reduced sales.

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South Indian retailers to stop selling OnePlus smartphones: Report

The South Indian Organized Retailers Association HAS raised concerns about selling OnePlus products, citing low-profit margins, delayed warranty claims, and logistical challenges.

South Indian retailers to stop selling OnePlus smartphones: Report

As per a report by ET, the South Indian Organized Retailers Association (ORA) has brought to light many challenges faced by brick-and-mortar stores in India selling OnePlus products.

ORA has underscored the urgent need for OnePlus to address a few crucial issues, emphasising the substantial impact on customer satisfaction and retail sustainability across the region.

Reasons

ORA expressed deep concern regarding the low-profit margins acquired from selling OnePlus products, which posed significant financial hurdles for these stores.

Moreover, the delayed resolution of warranty claims for customers, despite numerous escalations, has resulted in a decline in brand loyalty and sales.

Alongside this, logistical challenges emerged as a substantial obstacle, with difficulties in managing non-moving products and adhering to specific bundling requirements leading to inventory buildup and reduced sales.

This development has prompted drastic action from ORA, as they announce their decision to discontinue the sale of OnePlus products in over 4,500 stores across several key states, including Gujarat, Maharashtra, Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu, effective May 1, 2024.

The affected stores encompass significant retail chains such as Poorvika Mobiles, Sangeetha Mobiles, Big C, and Pooja.

This is bound to have significant implications for the availability of OnePlus products in the southern and western regions of India.

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