Traditional Retailers Threatened by Unchecked Growth of Quick Commerce Platforms: AICPDF

The All India Consumer Products Distributors Federation (AICPDF) has formally addressed Union Commerce and Industry Minister Piyush Goyal, voicing concerns over the “unchecked expansion” of quick commerce platforms. This comes shortly after the minister orders E-commerce companies for impacting small retailers.

In its letter, the industry body highlighted how quick commerce platforms like Blinkit, Zepto, and Instamart are challenging the traditional retail and FMCG distribution networks. They acknowledged the importance of innovation but warned against the rapid, unregulated growth that disrupts the retail ecosystem.

Specifically, AICPDF mentioned the decline of small ‘mom and pop’ stores and shifts in FMCG distribution, as major companies appoint these platforms as direct distributors, bypassing traditional ones. The federation also expressed serious concerns about potential violations of India’s Foreign Direct Investment norms by these platforms, leading to an uneven playing field and threatening the livelihood of small retailers.

On August 21, Union Minister Goyal had already stated that E-commerce platforms are disadvantaging small retailers through predatory pricing and discounts, urging a reevaluation of the sector.

(With inputs from agencies.)