Retail Distribution Body Calls on FMCG Majors to Pause Quick Commerce Supplies
In a growing rift between traditional retail distributors and emerging rapid delivery models, the All India Consumer Products Distributors Federation (AICPDF) has urged leading FMCG companies to immediately halt supplies to quick commerce platforms such as Blinkit, Zepto, and Instamart.
The AICPDF, representing over 4,50,000 distributors nationwide, has accused FMCG brands of contributing to unfair market conditions by directly supplying products to quick commerce players at discounted rates and preferential terms. The federation argues this disrupts the traditional distribution ecosystem and erodes the margin structures of conventional retail channels.
“Our distribution networks and stockists are being pushed out of the supply chain loop,” the AICPDF stated. “This threatens the sustainability of lakhs of small and medium distributors who have supported these brands for decades.”
Quick commerce platforms, which promise delivery of essentials in under 10–20 minutes, have scaled rapidly in urban India. Their streamlined supply chains, technology-driven inventory models, and private label products have intensified competition for visibility and shelf space in the FMCG sector.
Industry analysts note that brands are increasingly favoring these platforms to reach time-sensitive, convenience-driven consumers. However, this shift raises concerns over channel conflict and long-term retail partner relationships.
The AICPDF has asked companies including Hindustan Unilever, ITC, and Nestlé India to respond by April 30. Failure to engage or initiate corrective measures could trigger coordinated action, including potential boycott campaigns. The distributors also hinted at a push for regulatory scrutiny if no resolution is achieved.
This development underscores the mounting tension as traditional distribution models adapt to the rise of digital-first retail formats. While FMCG companies face pressure to innovate and capture emerging demand streams, maintaining channel harmony remains crucial to avoid alienating foundational retail partners.
The outcome of this standoff could influence how legacy FMCG supply chains restructure to accommodate the rapid growth of last-mile, high-frequency retail models—an area brands can no longer afford to ignore.