POCO, a subsidiary of Xiaomi, is under fire from the South Indian Organised Retailers Association (ORA) for what the association deems as unfair and unethical business practices. The ORA alleges that POCO is sidestepping mainline channels for distributing its phones, which they claim not only harms legitimate sales avenues but also negatively impacts government revenues due to potential tax evasion.
The retailers' body has expressed concerns that POCO's business model seems to prioritize cost-saving measures over providing a quality consumer experience. ORA has pointed out the lack of employment generation by POCO in India, contrasting it with other major smartphone brands like Samsung, VIVO, and OPPO that have a more extensive presence through distributors and sales promoters.
Efforts to address the issues with POCO directly have reportedly been met with silence from the brand's officials, prompting ORA to escalate the matter to government authorities. The association is seeking the central government's intervention to rectify what they perceive as detrimental practices by POCO in the smartphone market. Aside from pressing for the cancellation of POCO's trade license, ORA is also considering legal action by involving the Competition Commission of India to ensure accountability and transparency within the industry.