Quick Commerce vs. Kirana Stores: Rising Tensions

Blinkit, Zepto, and Swiggy Instamart seem to be facing increasing challenges as the All India Consumer Products Distributors Federation (AICPDF) has urged the Competition Commission of India (CCI) to take action against these quick commerce companies. The organization alleges that these companies are using strategies like deep discounts and predatory pricing to push small retailers out of the market.

The impact of online stores on small shopkeepers is becoming evident. Due to the offers and discounts provided by online companies, retailers’ sales have dropped significantly. Reports claim that around 2 lakh grocery stores have shut down across 75-80 cities as a result. This shows that the effect is being felt on the ground, as consumers are shifting towards cheaper products offered by these platforms.

The report highlights that quick commerce companies are creating difficulties for shopkeepers by offering heavy discounts on FMCG products, leading to intense competition. As a solution, the organization has recommended capping the discount on FMCG products at 10% of the MRP. AICPDF has urged the government to implement strict regulations on discounts for online marketplaces. They warn that if corrective measures are not taken, many small grocery stores could shut down soon, making immediate action necessary.

FMCG giants like HUL, ITC, Parle, and Adani Wilmar are now implementing different packaging and pricing strategies for quick commerce platforms. This approach aims to balance the competition between traditional stores and quick commerce platforms. Large companies are taking this step to sustain small retailers, as they struggle to compete due to their lower discount offerings. Meanwhile, quick commerce sales have surged, reaching $10 billion, with projections suggesting this figure could surpass $75 billion by 2032. So far, none of the companies involved have issued any statements on the matter.