OnePlus faces offline retail backlash over online-focused strategy

Trade partners warn of supply disruptions, grey market expansion, and rising financial strain as OnePlus reportedly prioritises online channels, prompting industry bodies to demand clarity on its India strategy and distribution roadmap.

Chinese smartphone brand OnePlus is facing mounting discontent among its offline retail partners in India, as reports suggest the company is increasingly shifting its sales focus toward online channels. Retailers and distributors have raised concerns over erratic product availability and a lack of clear communication, which they say is impacting business planning and profitability.

Several partners claim they were recently informed that a significant portion of OnePlus inventory would be routed through online platforms. This has left offline sellers, many of whom invested heavily in inventory, struggling with reduced access to stock and declining footfall.

Industry body raises red flag

The Organised Retailers Association (ORA) has formally taken up the matter, writing to Robin Liu to express concern over what it described as a “widening communication gap.” In its latest letter dated March 17, the association said repeated attempts to engage with the company have gone unanswered.

Highlighting growing unease, ORA stated, “The silence… is deafening,” adding that its earlier communications in February had also failed to elicit a response. The association warned that a sudden pivot toward online sales could destabilise the existing retail ecosystem.

Grey market risks and consumer impact

According to ORA, a stronger online push could increase the risk of inventory being diverted into unauthorised channels. The association estimates that in such models, a substantial share of stock could leak into grey markets, creating parallel supply chains beyond regulatory oversight.

It further alleged that such networks may engage in questionable practices such as fake invoicing, misuse of cashback schemes, and irregular tax claims, potentially distorting market pricing and affecting government revenues. Consumers, too, could be at risk of purchasing pre-activated or unauthorised devices through unofficial retail routes.

ORA has called on OnePlus to publicly outline its India strategy and initiate structured dialogue with stakeholders. “Our members need clarity to plan their business investments,” said Kailash Lakhyani.

The issue comes at a time when India’s smartphone market is witnessing a shift in distribution strategies. OnePlus operates under Oppo, which is also aligning operations with Realme as part of a broader consolidation, with changes already impacting sales and service teams.