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Xiaomi, Motorola, OnePlus may not remain online-exclusive, here’s why

The new e-commerce regulations by the Indian government may also leave an impact on online smartphone business and companies such as Xiaomi, OnePlus, LeEco, Motorola and InFocus don’t want to take any chances.

In this regard, they are mulling over offline presence in India, setting up experience stores and appointing their own online resellers.

ET reported that OnePlus will continue its association with Amazon India but will also launch experience centres in several cities where users can touch and feel the handsets before booking them on Amazon.

LeEco may set up at least four flagship experience stores.

LeEco India chief operating officer for smart electronics business Atul Jain told ET, “The issue with ecommerce regulation is for the ecommerce firms to handle and we have no role. Online has an inherent advantage as cost to reach to consumer is lower which brands can pass on to consumers, but the channel will not discount the product.”

“We expect the smartphone sales action will get back to offline business due to the ecommerce regulation,” All India Mobile Retailers Association president Arvinder Khurana told ET.

Industry experts say smartphone companies may replicate the margin they get in online business for which they will route the products from low value added tax (VAT) markets.