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AIMRA has urged government to revoke licenses of these Chinese smartphone brands
What’s the story
The All India Mobile Retailers Association (AIMRA) is making a bold move by asking the central government to revoke the operating licenses of Chinese smartphone brands like iQOO, POCO, and OnePlus.
They claim these companies are up to some anti-competitive tricks that are costing the country big time.
AIMRA has even contacted Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman, urging them to step in and take action against these brands.
AIMRA accuses Chinese brands of violating regulations
Kailash Lakhyani, the Founder and Chairman of AIMRA, has called out these companies for repeatedly breaking the rules, even after the Competition Commission of India (CCI) flagged them and there were constant reminders.
He claims these firms have exclusive deals with Amazon and won’t sell their products in retail stores.
Lakhyani also says that moving products without permission from online to retail channels messes up fund rotation and stops the government from getting extra GST benefits.
AIMRA highlights impact on local businesses and fair trade
Lakhyani stressed how crucial it is to protect local businesses and maintain fair trading practices in India.
He voiced his worries about the growing trend of exclusive distribution to big e-commerce platforms, which he thinks sidelines local retailers and raises compliance concerns.
“Many Chinese companies follow a similar modus operandi by using online platforms to support gray market activities, undermining fair trade practices in Bharat,” he said.
AIMRA seeks MP’s help in escalating issue
AIMRA has also contacted MP Praveen Khandelwal, asking him to help escalate the issue with the Commerce and Finance ministries.
In a letter sent last week, the association highlighted these concerns and requested his intervention.
“We seek to cancel licenses for companies that do not support local businesses and fair trading practices in Bharat,” Lakhyani stated in the letter.
AIMRA criticizes iQOO’s distribution practices
AIMRA has taken a jab at iQOO, Vivo’s sub-brand, for focusing mainly on selling its products through online platforms like Amazon, Flipkart, and its own online store.
AIMRA claims it has repeatedly asked both Vivo and iQOO to make sure that stocks are supplied to traditional retail outlets.
However, they’ve faced constant delays and no progress in getting retailers billed.
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