At a time when the Doklam controversy has turned the heat on Indo-China relations, the tranquil State of Goa is witnessing action on another front. Goa Mobile Retailers Association (GMRA) is up in arms against a Chinese mobile company, as members of the Association led by its president Sayed Amjad are bracing up to challenge the might of this company in the days ahead. The Goan throws more light on the issue
Q: What is the issue which made Goa Mobile Retailers Association (GMRA) to protest against a Chinese mobile company ?
Four months back, this Chinese company opened an office in Margao, claiming that this was to be utilised as its service centre. We retailers were all happy at this development. But after some time, we got to know that this company was establishing a showroom here in Margao. We asked for a roadmap from the company whose officials told us that they have plans to open 10 such showrooms in Goa to be operated by the company. We then talked to the company's Goa head and requested him not to go ahead with this plan. One day, around 40 mobile retailers from Goa went to the company's head office in Panaji and spoke to the manager who assured us that the company was not opening its exclusive showroom. We said we have no problem even if the company operates this showroom as an ‘Experience Zone', but not an exclusive showroom for sale of its mobiles.
After a month or so, the company installed a big board in Margao announcing the launching of its sales point. 90 of the mobile dealers rushed to Panaji to remind the company officials of their promise of not opening a showroom. They did not agree and expressed their resolve to launch the company showroom. As a protest measure, we retailers refrained from selling mobile phones of this company from July 1 to 31 and removed the company's phones from the display of our retail shops. The protest met with a 100% success in Margao and Panaji and within one month 75% sale of this company was hit. This was followed by our announcement of an all-Goa meeting of retailers on August 2 in Panaji. Some days prior to this announcement, the company launched its showroom in Margao. Thereafter, we protested against this by sitting on a dharna and followed it up by meeting TCP Minister Vijai Sardesai to narrate our problems to him. The minister supported our demand.
Q: What is your main demand ?
We told the company officials not to open its outlet (showroom) but to give any of the retailers a franchisee. They didn't accept this. We even expressed our willingness to accept the opening of an Experience Zone but not a company exclusive showroom.
Q: But the customers could also benefit given the choice and economies of scale rendering reduction of prices of mobile phones of this particular Chinese company to a certain extent.
No, the customers will not benefit monetarily as the rates at which the company will sell its mobiles at its exclusive showroom will match the rate at which we already sell their products at our retail outlets.
Q: What is the numerical strength of the mobile retailers in Goa ?
A total of 300 retailers sell mobiles at their outlets in Goa.
Q: What is the combined turnover of this Chinese company in Goa ?
This company's monthly turnover is Rs 3.7 crore.
Q: How does the system work in this trade ?
The product (mobile phone) of this Chinese company is assembled in India while the original product (parts) is sourced from China. Once assembled, the product moves from the assembly unit to the national distributor of this company. From there, it is then sourced by the Goa-based distributor from whom we (retailers) source the product.
Q: So, what is GMRA's future course of action ?
We are awaiting the arrival of the company's Mumbai-based higher official who is scheduled to visit Goa anytime this week. Until then, the sale of this company's products are stopped at the retail outlets in Goa.
Q: But why did you object to the opening of an exclusive company outlet (showroom) as this is the norm of many other companies dealing in other products?
If this company opens its exclusive showroom, all other mobile companies will also follow suit which will hit our business prospects. The employment potential will also be hit as we have learnt that plans are afoot by this company to replace the manpower of this company which work in our shops as promoters with the company's own manpower. This will render a lot of Goans unemployed. Some 170 to 180 such company promoters employed at our retail outlets will face the immediate prospects of unemployment.
