To combat the competition from quick commerce and e-commerce players, reduce the impact on their businesses and ensure a level playing field, distributors are preparing to approach fast-moving consumer goods (FMCG) and retail companies to enhance their margins. A delegation of members of the distributor and retailer associations is expected to meet companies in April.
The All India Consumer Products Distributors Federation (AICPDF) and the retail association are conducting meetings across India with distributors to counter the rise of quick commerce and e-commerce. The union has conducted more than 100 meetings in 100 districts in the country and plans to hold meetings in 500 districts and 700 taluks by March 31.
The AICPDF has demanded a rise in 10 per cent margins for distributors and 20 per cent for retailers to ensure business sustainability, and profitability with the current market challenges.
Impact is huge
“This is the first time that the distributors and retailers have come together. We are discussing in depth the challenges faced by distributors and retailers with the rise of quick commerce and e-commerce. Quick commerce is currently limited to only major metro cities, but the impact is huge. We are creating a network of people and plan to approach retail and FMCG makers to increase our margins,” said Dhairyashil Patil, National President of AICPDF.
“We had presented our demands to the government on providing social security to gig workers and strengthen actions on perishable items sold by quick and e-commerce. The Union government listened to both our demands and measures have been introduced. We are being encroached upon by e-commerce and quick commerce companies, operating under the guise of innovation and technology. These companies are nothing but new-age East India Companies, exploiting our market with cunning tactics. The union is meeting distributors at every end of the spectrum and discussing on methods to mitigate the risk to our business,” added Patil.
The union body has also urged the Centre to ensure the implementation of compliance with FDI norms and curb unethical business practices by platforms that prioritise profits over fair competition.
