FMCG Distributors Plan Action Against Deep Discounts on E-commerce Platforms

Overview

The All India Consumer Products Distributors Federation (AICPDF) is preparing to take decisive action against FMCG companies whose products are being sold at deep discounts on quick commerce and e-commerce platforms. This move represents a significant development in the ongoing tension between traditional distribution channels and digital retail platforms.

Planned Action

The federation is compiling a list of FMCG companies whose products are available at significant discounts on digital platforms. The organization’s strategy includes implementing a non-cooperation movement, particularly targeting companies that have not responded to their open letter requesting fair market practices.

Industry Impact

According to Dhairyashil Patil, National President of AICPDF, while some FMCG companies have assured fair play implementation, others have remained unresponsive to multiple communications. The situation highlights the growing tension between traditional and digital retail channels.

Distributor Concerns

Traditional distributors and retailers, who have been instrumental in building FMCG brands, express deep concern over the current market practices. Their open letter emphasizes the significant investments made in capital, resources, and time to establish these brands as household names.

Future Implications

The AICPDF has already conducted extensive consultations, organizing meetings with retailers and distributors across 600 districts nationwide. These discussions have focused on assessing the impact of quick commerce and deep discounting on traditional distribution channels.