LeEco Trending Again, This Time For Cheating!

The flamboyant Chinese smartphone maker LeEco is in news once again. Not only in news but the company is trending on Twitter since morning of 4 July. But there is nothing for you to be happy about – if you are a user of LeEco products or ever worked for that company.

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Since this morning, users, workers and people who have ever worked for LeEco are tweeting about how the company has cheated them and vanished from India without paying their dues.

A twitter hashtag #LeEcoCheatingIndians is trending on Twitter.

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Among these disgruntled workers, majority are contract workers who worked for LeEco for its social media campaigns. These campaigners, when the Chinese company came to India, worked hard to position the smartphone maker in India’s mobile phone market, of course in social media space only.

Besides these workers, there are many media houses who are yet to get their dues paid that incurred on account of advertisemeleeco-trending-4nts and sponsorship.

“We have close to Rs 13 crore pending from that company,” said the sales head of a prominent electronic media house.

Echoes the same another media house that have a online news portal that primarily covers the smartphones and gadgets industry.

The pending payments from LeEco is estimated to touch Rs 80 crore if all the payments are combined. However, these social media workers as well as various media houses so far have got nothing from the company except some assurances that the payment will be made. Heaven knows, when.

India is not the first country where LeEco faced such situations.

In January this year, a Honk Kong based media firm had filed a legal suite against  the Chinese smartphone maker for similar reasons.

The Chinese firm that came to India just a year and half back is going through a bad phase and analysts predict the worse is just round the corner. Insiders say there have been talks the company may exit India.

May be, it has already left India with the company’s operations almost stopped and its New Delhi office has been shut down.

In January this year we had reported that the company had asked its India head Atul Jain to quit.

Besides Jain, LeEco had also asked close to half of its entire workforce to put in their papers, and if sources are to be believed, 40% of the sales team including the sales head have already left the company.

Besides the manpower issue, then, the company was believed to have slashed its budgets in India, shelved its expansion plans that included opening of new stores. Worse than that, sources say, there has been no shipment of products to the Indian shore for last 10 months.

The company has been going through a severe financial crunch and its global CEO had admitted recently that it has bitten off more than it could chew. In its early days of entering in to any new market, the company created a buzz by investing huge money on brand promotion and advertising but back home it started loosing ground. It has not paid off many debts, both at home in China as well as in India.

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