Home Baby brand Why Xiaomi is not happy with the AIMRA offline retailer association

Why Xiaomi is not happy with the AIMRA offline retailer association

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NEW DELHI: Chinese handset manufacturer Xiaomi retaliated to AIMRA and called the latter’s allegations an “attempt at defamation Mid India and its employees ”. The company, in a letter to the Mobile Retailers Association, said it was distressed by the tone and content of its recent emails and social media communications.

Mobile retailers in India had threatened to approach the Competition Commission of India

(CCI) as well as the courts against Xiaomi, accusing the smartphone brand of violating the terms of the agreement through exclusive links to online marketplaces.

Sunil Baby, Xiaomi’s senior director of offline sales, said the company was deeply hurt by the association’s “slanderous and defamatory campaign”. He said that AIMRA’s recent public domain disclosure unnecessarily puts the company in a bad light despite its “sincere attempts” to support our retail partners.

“We recently noticed that some of the AIMRA officials were circulating WhatsApp messages showing Mi India in a poor manner and spreading factually incorrect statements about the brand… we hope our relationship should not be strained by unwanted personal attacks and factually incorrect statements made or distorting information, ”Baby said.

AIMRA asserted that the agreement between Xiaomi India and offline retailers signed up a few years ago have been repeatedly breached resulting in inventory unavailability for the majority of small businesses.

“Xiaomi’s claims of the highest sales over the past two months have all got us thinking about the channel from which such a large sale was made. Whether it’s done by exporters, aggregators or some other channel because Mi’s partners across India have the least or no stock during this period, ”AIMRA said in its letter to Baby last week, which was followed by various posts on the micro-blogging Twitter site accusing Xiaomi of focusing on the online channel.

In the rebuttal letter, Xiaomi clarified that all of its devices on the other side Mi and Redmi are available to its more than 20,000 business partners, without exclusivity on any online platform.

From product selection to ongoing discounts, cash backs and offers, we have maintained parity across channels, ensuring our customers get the best deal, regardless of platform, ”he said. declared.

Baby said the company maintains “same price, same discount, similar offers” for retail and online channels. “In fact, from time to time we run special programs specifically for business partners. For example, we had special retail programs for phones like Mi 11X Pro, Mi 11X, Mi 11 Lite, and Mi 10i that were retail exclusive.

The company claimed it was the only brand at Diwali 2020 to run a program for the entire holiday season. “In the case of bogus activations, we have very strict policies in place to take action against partners who engage in such activities. “

Xiaomi once again highlighted the current supply chain challenges and chipset shortages that have impacted all brands.

“With some SKUs facing supply issues due to component shortages, we are working tirelessly with our partners to explore the best possible solutions and ensure inventory availability in retail and online,” said he added.

Baby said Xiaomi’s goal has always been to provide equal stock to both channels.

“Our Retail GFK market share has increased by 500 basis points (5% absolute increase) since the start of 2021, this could not have happened with the support of our Retail partners and adequate stock for the channel sale to detail. In light of this, we find your accusations of bias unreasonable and unsupported by data, ”Baby said while countering the claims.

Earlier this year, Xiaomi launched its offline growth initiative where it invests Rs 100 crore to support its retail partners and the growth of its exclusive network.

“Our expansion is a function of stock and our ability to engage; We will continue to expand our retail presence as the capacity of our plant in India increases. We are doing everything we can to provide breakthrough solutions that enable retail to grow, ”said Baby.

In the letter, Xiaomi cited data from GFK 2021 and claimed that it was the No.2 brand within the retail channel with over 20% market share in recent months. “In 2021, our offline retail market share increased by 500 basis points (5% absolute increase).”

“Just as we make sure to always balance the interests of all our channels, we also ask associations to maintain neutrality in the way they work with the different brands. “

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