AIMRA Calls for Ban on Chinese Smartphone Brands
The All India Mobile Retailers Association (AIMRA) has urged the Indian government to ban Chinese smartphone brands iQoo, Poco, and OnePlus. The association accuses these brands of engaging in anti-competitive practices that harm local businesses and the Indian economy.
AIMRA, representing over 1.5 million mobile retailers in India, alleges that these brands maintain exclusive distribution agreements with e-commerce giant Amazon, bypassing traditional retail channels. This practice, they argue, marginalizes local retailers and denies the government tax revenue from offline sales.
"Despite CCI reports and persistent follow-ups, these companies continue to violate regulations by maintaining exclusive agreements with e-commerce platform Amazon and refusing to distribute products through retail stores," stated Kailash Lakhyani, Founder and Chairman of AIMRA.
AIMRA also raises concerns about unauthorized product diversion from online to offline channels, disrupting the flow of funds and undermining fair trade practices.
Impact on Local Businesses and the Exchequer
Reduced Tax Revenue: Grey market activities and online-only sales deprive the government of potential GST revenue.
Customers lose bargaining power and face restricted choices due to the lack of offline availability.
AIMRA specifically cites Vivo's sub-brand, iQoo, as a prime example of these practices. The association claims that iQoo primarily sells its products through online platforms like Amazon, Flipkart, and its own online store, despite repeated requests for wider retail distribution.
"IQOO smartphones, a sub-brand of Vivo Mobiles, which is currently under investigation by the Enforcement Directorate for a money laundering case. Additionally, Vivo’s name has surfaced as an offender in the latest findings by the Competition Commission of India (CCI). Despite our persistent efforts, we have encountered continuous delays and no progress in billing retailers," Lakhyani said.
AIMRA's Appeal to the Government
AIMRA has appealed to the government to take decisive action against these companies.
"We request your intervention to escalate this issue to the Hon'ble Commerce and Industry Minister, Piyush Goyal, and Finance Minister, Nirmala Sitharaman, calling for the cancellation of licenses for such companies. It is crucial to protect local businesses and uphold fair trading practices in our country," Lakhyani stated in a letter to Member of Parliament Praveen Khandelwal.