OnePlus to close most retail stores as it shifts focus online

OnePlus is preparing to shut most of its offline retail network in India as it pivots to an online-first, direct-to-consumer (D2C) model, signalling a major reset in its market strategy.

According to Moneycontrol, the company has asked partner-run exclusive stores across the country to close operations, with only three company-owned outlets—in Hyderabad, Chennai and Bengaluru—expected to remain. The move marks a near-complete withdrawal from offline retail.

SHIFT TO ONLINE-FIRST MODEL

The strategic shift is aimed at improving pricing competitiveness and deepening engagement with digital-first consumers. OnePlus said in a statement that the move would enable sharper pricing and more India-focused innovation, reflecting a return to its earlier online-led approach.

The transition will also affect its distribution ecosystem. General trade distributors have been given a March 31 deadline for final billing, with instructions to clear existing inventory without a transition window, according to Moneycontrol. Modern retail partners have also been informed that billing will pause for several weeks, with upcoming launches—including the Nord 6—likely to be sold exclusively online.

To offset concerns over reduced physical presence, OnePlus plans to significantly scale its after-sales infrastructure. The company will expand its authorised service centres from around 400 to over 600, extending coverage to more than 500 cities by leveraging parent company Oppo’s network.

The expansion is intended to reassure customers and ensure compliance with regulatory requirements, which mandate service support for up to five years. Industry sources indicate that using Oppo’s infrastructure allows OnePlus to meet these obligations without substantial additional investment.

TENSIONS WITH RETAIL PARTNERS

The decision has sparked concern among offline retailers. Kailash Lakhyani, president of retail body ORA and chairman of AIMRA, said the move could disrupt the broader retail ecosystem and potentially push consumers towards grey markets.

“This move could mark a return to market conditions reminiscent of 2014,” Lakhyani said in a communication to partners, adding that industry bodies are exploring legal options to safeguard business interests, according to Moneycontrol.

Retailers have also raised concerns about inventory clearance and recovery of outstanding credit, given the absence of a phased transition.

The pivot comes against a backdrop of declining market share. OnePlus’ share fell to 2.4% in 2025 from 3.9% a year earlier, reflecting intensifying competition in the premium smartphone segment.

The move also follows the recent exit of India CEO Robin Liu. While the company has maintained that its India strategy remains unchanged, the shift towards an online-first model suggests a recalibration of its go-to-market approach.

Parent company Oppo has been consolidating operations alongside Realme, with a growing emphasis on digital channels and leaner sales structures.

For OnePlus, the success of this pivot will depend on execution—balancing pricing advantages with customer trust, while managing fallout from its disengagement with offline partners. The coming months, particularly around new product launches, will be a key test of that strategy.