New Delhi: The difficulties existing in the quick commerce industry that offer 10-minute delivery may increase as traditional retail distributors raise mater about its business models. The All India Consumer Products Distributors Federation (AICPDF) which is the association of the largest group of retail distributors in India has thus written a letter cocketed to the ‘’Competition Commission of India (CCI) concerning Blinkit, Swiggy, and Zepto. This letter is a complaint-letter that calls for an investigation of these companies for deliberately selling products at prohibitively low prices.
Criticisms of Bias in Price Discrimination
As per the Reuters report, in the letter addressed to the competition commission and dated as October 18th, 2024 it has been mentioned that Blinkit, Swiggy and also the Zepto are offering products cheap and the basic intent is to lure the potential customers where most of its stock is sold at a loss. This deep discounting is alleged to be threatening to dismantle the original retail channels and exerting significant pressure on conventional distributors and retailers who have for ages connected manufacturers and retailers.
Consequences to Conventional Stores
AICPDF has often serously opined that majority of consumer goods firms are also gradually starting to engage the quick commerce platforms directly. This change is said to be rendering traditional distributors irrelevant in their roles of guaranteeing efficient delivery of goods from production companies to stores. The federation says that this direct partnership virtually eliminates the ability of the traditional retailers to successfully compete, and thus the extinction of most of them and the entire retail value chain.
Application for Ancillary Relief
In light of these occurrences, AICPDF has called on the CCI to put in place preventive measures that will protect traditional distributors and small retail outlets. This also emphasizes that the concept of fast & furious or ultra instant deliveries which is the new normal indeed redefines consumer behaviors and poses new sources of competitive threats even to gigantic players of internet selling such as Amazon.
No Response from CCI and Quick Commerce Firms
For the moment, the Competition Commission of India has not reacted to the appeal of AICPDF. In the same way, there has been no response from Blinkit, Swiggy and Zepto occasioned by several follow-up emails sent in regard to the federation. Such silence has raised more concern to the traditional retailers believing that their grievances might not be heard as expected.
Sharing the market and growth rates of quick commerce companies
According to the research firm Datam Intelligence, the annual revenues for quick commerce players are expected to touch $6bn (₹50,000 crore) in the next year, 2024. There is also market share expectation where Blinkit leads in market share occupying about 40%, Swiggy and Zepto each taking about 30% of the market share. This established market position shares the increasing trend and domination of such a quick commerce platform in the Indian retail market.
Implications of all the above information and analysis for the Retail Sector of the future
The problem that has recently emerged between conventional stores and new q-commerce startups is illustrative of restructuring in the Indian retail industry. While Q commerce platform is growing and gaining more customers through different delivery methods and fairly priced products, the traditional retailers are struggling to come to terms with the consequences of such changes on the optimality of their business models.
This paper analyses the recent letter written by AICPDF to the Competition Commission of India as a significant stage in the debate on unfair competition in the Indian retail market. While large quick commerce firms such as Blinkit, Swiggy, and Zepto are rapidly expanding, the implications of this plea for investigation and precaution might significantly impact the future of offline and online retail businesses across India.