The All India Mobile Retailers Association (AIMRA) is advocating for the Indian government to impose restrictions on Chinese-owned brands such as iQoo, Poco, and OnePlus from operating in India. AIMRA, representing over 1.5 million mobile retailers, alleges that these brands engage in unfair business practices that lead to financial losses for the government. “Indian Mobile Retailers Urge Ban on Chinese Brands Over Anti-Competitive Practices.
Exclusive Agreements and Product Diversion
AIMRA claims these brands have exclusive agreements with e-commerce platforms like Amazon, bypassing traditional retail outlets. Moreover, the unauthorized diversion of products from e-commerce to retail channels disrupts fund circulation and deprives the government of GST benefits.
CCI Reports and Anti-Competitive Practices
The Competition Commission of India (CCI) has accused Chinese smartphone makers and Samsung of collaborating with Amazon and Flipkart to launch products that exclusively violate antitrust laws. AIMRA highlights Vivo’s sub-brand iQoo’s practices, mainly selling online despite repeated requests to supply stocks to traditional retail outlets.
Call for Action
AIMRA is seeking the cancellation of licenses for non-compliant companies and is requesting intervention from Commerce and Industry Minister Piyush Goyal and Finance Minister Nirmala Sitharaman. Kailash Lakhyani, Founder and Chairman of AIMRA, emphasized the importance of protecting local businesses and upholding fair trading practices.
Proposed Solutions
– AIMRA and the Confederation of All India Traders (CAIT) propose the following solutions:
– Implementing a robust e-commerce policy framework
– Eliminating GST input credits for B2C transactions
– Banning exclusive instant cashback offers
– Suspending e-commerce festival sales
– Introducing a luxury tax on high-end products
Impact on Local Businesses
AIMRA stresses that these practices marginalize local retailers, undermine fair trade, and deprive customers of bargaining rights. Lakhyani added that local traders need more product access, eliminating their economic contribution.
Government Intervention Needed
AIMRA’s letter to Member of Parliament Praveen Khandelwal seeks his assistance in raising the issue with the Commerce and Finance ministries. The association hopes government intervention can create a level playing field for online and offline retailers, ensuring fair competition and consumer protection. The future of Chinese-owned brands in India is uncertain as AIMRA’s plea gains momentum.
AIMRA Seeks Ban on Exclusive Online Sales by Chinese Mobile Brands!
