Distributors Body Alleges CII Fronting For Quick Commerce

The All India Consumer Products Distributors Federation voiced its opinion against the Confederation of Indian Industry's apparent advocacy for quick commerce companies at a fast-moving consumer goods industry stakeholders' meeting. It demanded that discussions on quick commerce address practices such as deep discounting and predatory pricing.

The distributors' body, which represents 4.5 lakh distributors and 1.3 crore kirana stores nationwide, alleged that the CII meeting exclusively involved manufacturers, and disregarded the presence and views of distributors and retailers, who contribute over 85% of FMCG turnover in India. It called for their inclusion in all FMCG policy discussions conducted by CII or other industry bodies.

Objecting to CII's apparent focus on what it described as "so-called 'efficient' and 'organised' quick commerce companies" during the industry meeting, the Federation said, "These companies, operating under the guise of innovative business models, are merely perpetuating unethical practices like deep discounts and predatory pricing."

This is AICPDF's latest allegation against quick commerce players and the threat they pose to traditional distribution networks. The body has been vocal about the challenges it faces from the fast-evolving quick commerce industry. It had written to the Competition Commission of India in October, accusing quick commerce players Zomato Ltd.'s Blinkit, Swiggy Ltd.'s Instamart, and Zepto of predatory pricing. The government had followed this up by issuing notices to nine e-commerce and quick commerce companies, including Blinkit, Instamart, Zepto and JioMart.

"CII and similar organisations must avoid fostering hidden agendas that serve only a select few at the cost of millions of hardworking stakeholders," the distributors' body added.