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India May Pressure Oppo & Vivo To Quit Using Their Chinese Channel Partners

India is intensifying its inspection of Chinese handset players and is preparing to force smartphone makers such as Vivo and Oppo to stop relying on Associates for distribution and instead rely on local firms.

India May Pressure Oppo And Vivo To Quit Using Their Chinese Channel Partners

Leading smartphone companies Oppo and Vivo, who have over 10% and 15% market shares, respectively, and are typically mighty offline players, recently have formed a flavour of Associates to market their goods, which has piqued the attention of Indian regulators.

According to industry insiders familiar with the situation, India is intensifying its inspection of Chinese handset players and is preparing to force smartphone makers such as Vivo and Oppo to stop relying on Associates for distribution and instead rely on local firms.

Because of non-availability of statutory structure in place to bar such actions, the government will surely communicate its position to the companies in an informal manner.

one industry executive said on condition of anonymity “The initial plan will be to fix the issue without any legislation, but if there is a necessity, a gazette notification may be published”

“The general opinion is that no distribution   by the Chinese should take place in India because they got access to markets. “Delivery of IT products is an area where India got a competitive advantage, and that shall be communicated to Chinese firms shortly”, the individual added.

Generally, each state has areas with around four big distributors. Significantly, prior to starting their own brands, most promoters of Indian handset companies such as Karbonn, Micromax and Lava have worked as distributors. 

VRP Telematics, Optiemus, HCL, UTL Group, Jaina Group, Ingram Micro, Syska are now some of the most important ICT and handset wholesalers in the industry.

The Ministry of Electronics and Information Technology (Meity) has sent notifications to manufacturers including as Xiaomi, Oppo, Vivo, Realme, and OnePlus, requesting device component data, commonly known as Bill of Material (BoM). The measure, regarded as punishment for China’s continuing bullying along the India-China border, might be similar to what the government has imposed for telecom equipment.

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