Retailers body to seek govt intervention on POCO's business practices

The South Indian Organised Retailers Association is planning to seek the central government's intervention with regard to the business practices of POCO, a sub-brand of Xiaomi, alleging that the cell phone manufacturer is avoiding the supply of phones to mainline channels.

In a statement, the ORA claimed that the business methods of the firm are a clear indication of POCO's attitude to minimise spending by reaching the product through online and "illegitimate" channels without providing consumer experience.

The retailers body also said that POCO is not contributing to employment generation in India, as the brand operates with just three distributors and “no sales promoters” in stark contrast to other major smartphone brands like Samsung, VIVO, and OPPO.

These actions by POCO not only harm the legitimate sales channels but also result in financial losses to the government exchequer, ORA charged. “POCO's unfair and unethical business practices have serious implications for the industry and economy as a whole. We cannot allow a brand to operate in India at the expense of legitimate businesses and government revenue.

ORA will urge the competent authorities to take swift action against POCO and set a precedent for ethical business conduct in the country,” the statement said. POCO officials could not be reached for comment. ORA has made several attempts to address these issues with the POCO leadership team, but their “lack of response” has compelled the retailers body to take action including escalating the matter to the Ministry and departments concerned after the Lok Sabha elections to demand the cancellation of POCO's trade license, the statement said.

In addition, ORA is prepared to file a case with the Competition Commission of India (CCI) to ensure accountability and transparency in the smartphone market, it added.