FMCG distributors rally to defend turf against qcom, ecom competitors

Fast-moving consumer goods (FMCG) distributors will hold meetings along with retailers across various cities and districts in India to combat the rise of online retailing over the next three months.

 

The All India Consumer Products Distributors Federation (AICPDF), which represents over 400,000 distributors and 350,000 sub-distributors, has launched a nationwide campaign. It plans to hold meetings from January 20 to March 31 in over 500 districts and 700 talukas, aiming to bring distributors and retailers together to develop a strategy to counter the growth of quick commerce (qcom) and e-commerce platforms, which are engaging in deep discounting, predatory pricing, and unethical practices.

 

 Over 10 million kirana store owners are expected to join the campaign.

 

The inaugural meeting took place in Bengaluru on Saturday, where around 300 distributors and retailers gathered to discuss the challenges the supply chain and retailers face due to the loss of business to new retail formats.

 

During the meeting, attendees decided to adopt technology to compete with new retailing models and also plan to approach FMCG companies to request higher margins to level the playing field.

 

“Traditional retail has been the backbone of India’s economy, serving every corner of the country with dedication and resilience. Today, we are being encroached upon by a new wave of so-called modernisation — e-commerce and qcom firms — operating under the guise of innovation and technology. These companies are nothing but the new-age East India Companies, exploiting our market with cunning tactics. If we do not unite and act now, we risk being pushed into financial slavery under the pretext of modernisation,” said Dhairyashil Patil, national president of AICPDF.

 

He added, “We have launched a campaign to fight back against the rise of these online formats with the slogan, ‘Hum Hain Hum Rahenge’.”

 

Patil also said that due to the aggressive expansion of qcom, 50,000 retail stores have closed in Bengaluru alone in the past year, and many more are on the brink of shutting down as they lose sales to online platforms.

 

Over the next three months, the distributors’ body plans to unite the supply chain and demand a minimum margin of 20 per cent for retailers, 10 per cent for distributors, and 5 per cent for super stockists to level the playing field for all players. Currently, distributors receive an average margin of 3-5 per cent, retailers receive a margin of 8-12 per cent, and super stockists’ margins range from 1.5-3 per cent.

 

Last year, the distributor body wrote to the Competition Commission of India about the rise of qcom and its impact on their business. It has also written to the Ministry of Commerce and Industry, the Ministry of Health and Family Welfare, and the Ministry of Road Transport and Highways regarding the growth of qcom.

 

According to Statista, the qcom market in India is forecast to generate revenue of $5.4 billion in 2025. The market is expected to exhibit a compound annual growth rate of 16.07 per cent from 2025 to 2029, reaching a projected market volume of $9.77 billion by 2029. The number of users in the qcom market in India is expected to reach 60.6 million. 

To Level the playing field

 

> FMCG distributors and retailers will launch a nationwide campaign from January 20 to March 31 in over 500 districts and 700 talukas

> The meetings aim to create a plan to address deep discounting, predatory pricing, and unethical practices by quick commerce 

and e-commerce platforms

> The inaugural meeting took place in Bengaluru on Saturday, which saw closure of 50,000 retail stores in the past year due

to the rise of quick commerce

> Quick commerce market in India is expected to generate $5.4 billion in 2025, with a CAGR of 16.07% from 2025-2029, potentially reaching $9.77 billion by 2029, according to Statista