Mobile Retailers Call for Licence Cancellations of Chinese Smartphone Brands

Mobile Retailers Call for Licence Cancellations of Chinese Smartphone Brands

The All India Mobile Retailers Association (AMIRA) has urged the Indian government to cancel the operating licenses of several Chinese smartphone brands, including iQoo, Poco, and OnePlus. The association claims these brands rely heavily on online sales channels, excluding local retailers and harming their businesses.

Concerns Over E-commerce Exclusivity

AMIRA’s letter to Commerce Minister Piyush Goyal and Finance Minister Nirmala Sitharaman outlines the detrimental effects of e-commerce exclusivity on the retail market. These brands, according to the association, limit product availability in traditional stores, favoring platforms like Amazon and Flipkart.

Kailash Lakhyani, Chairman of AMIRA, emphasized that this practice is marginalizing local retailers and raising compliance concerns. The association also criticized these brands for supporting grey market activities, further eroding fair trade.

Economic Impact on Local Traders

In addition to anti-competitive practices, AMIRA highlighted economic concerns. It mentioned that many Chinese smartphone brands retain earnings in Complete Knocked Down (CKD) formats, contributing little to the Indian exchequer. The letter expressed that limiting product access to local traders hampers their economic contributions, while customers lose bargaining power, reducing market competition.

Call for Fair Competition

AMIRA’s plea to the Indian government underscores the urgent need to protect local mobile retailers. With over 1.5 million members, the association seeks the cancellation of licenses for brands that disregard local business interests, ensuring a fairer trading environment in the mobile retail sector.