A group of FMCG distributors have written in complaint to the union minister of industrial and Commerce , Piyush Goyal to look into the matter whether the Q commerce platforms like Blinkit, Zepto and Instamart violating the FDI rules of India. This incident happened a few days after the cabinet minister has lamented over the loss of retailers business after the boost of quick commerce platforms’ growth. The all India consumer products distributors association has written their grievances to the cabinet minister of industry and commerce, Piyush Goyal chole control the business model of Quick Commerce platforms like Blinkit, Zepto and Instamart to ensure that they are in line with the FDI regulations.
What is the reason behind the demand of FMCG retailers?
The expansion of this Q commerce platforms is not under proper regulation which leads to severe district in the industry, following which small retailers are being exploited from this monopolistic practices. The federation also added in the written statement that the central government should look into the matter diligently and implement measures to ensure that small retail us or not being exploited by the corporates and monopolistic practices of this group of quick commerce platforms’.
If left unchecked, all this issues can lead to the destruction and the industry finally leading to collapse of the logistics of various firms. Everyone is witnessing a change in the FMCG sector, the erosion of small retailers and this shift in the FMCG distribution landscape. FDI has placed restrictions on the eCommerce platforms that operate under the market place model from holding inventory managing the inventory sold through their platforms.
The National President of AICPDF has added in the written statement that a few of the quick commerce platforms are engaging in practices that Ramesh tea line between the marketplace and inventory based model since there is no water tight containers holding the difference between the same. The current situation is moving towards and uneven market for retailers and these kind of platforms which disturbs the optimum proportion, and is affecting the lives of
millions of retailers who have served millions of people for decades through their services.
In conclusion, it is evident that the retailers have been agitated by the move of Q commerce platforms; which have severely affected their businesses and intact their livelihood. The Government should immediately look into this matter seriously to avoid further the consequences and help the retailers community solve their grievances ; on the
other hand giving an opportunity to this platform to serve customers efficiently, not harming their business as well. If government is lacking in taking steps to ensure the regulations are being followed by these platforms, this may disturb the FMCG sector in the country finally leading to a collapse in the consumer goods which may affect the consumers
in an adverse way.
