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Distributors' body expresses concerns over quick commerce firms' deep discount practices
AICPDF warned that if FMCG companies fail to act against these 'harmful practices,' it will launch a mass non-cooperation movement against them.
The AICPDF, which represents 4 lakh retail distributors, has highlighted an 'alarming' trend of predatory pricing and deep discounting practices by quick commerce firms
The All India Consumer Products Distributors Federation (AICPDF) has expressed concerns about quick commerce firms' deep discount practices in a letter to FMCG brands.
The AICPDF, which represents 4 lakh retail distributors, has highlighted an 'alarming' trend of predatory pricing and deep discounting practices in a report by CNBC TV18. AICPDF argues that these practices undermine the distribution network, erode brand value, and create unrealistic consumer expectations around pricing
It argued that retailers lack the financial backing to match such offers, placing them in an unfair position and pushing them to the brink of survival.
AICPDF warned that if FMCG companies fail to act against these 'harmful practices,' it will launch a mass non-cooperation movement against them.
"We believe that such a disruption would be detrimental to all stakeholders and we hope to avoid such drastic measures," Dhairyashil Patil, National President of AICPDF said.
These tactics devalue the hard work and loyalty of distribution partners, raising concerns about the market's long-term sustainability. This threatens to disrupt the carefully nurtured relationships that have been built over decades, potentially leading to a breakdown of the traditional supply chain," Patil added.
AICPDF urged the FMCG players to closely monitor and evaluate the effect of quick commerce apps on distribution and retail networks.
The distributor's body appealed to the big FMCG brands to keep a check on activities that could potentially disrupt the delicate balance between the two.
The letter follows the recent complaint to the Commerce Ministry and the Department for Promotion of Industry and Internal Trade (DPIIT), alleging violations of Foreign Direct Investment (FDI) regulations by operating inventory-based models, which is prohibited under the Press Note 2 of India's e-commerce policy.
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