FMCG Distributors and Retailers Unite to Boost Margins
In a bid to enhance business sustainability and profitability amidst current market challenges, the All India Consumer Products Distributors Federation (AICPDF) has called for a 10% increase in margins for distributors and a 20% increase for retailers. This move comes as distributors and retailers face stiff competition from quick commerce and e-commerce players, prompting them to seek ways to level the playing field and safeguard their businesses.
Challenges Faced by Distributors and Retailers
The impact of quick commerce and e-commerce on traditional distributors and retailers cannot be overstated. While quick commerce is currently concentrated in major metro cities, its reverberations are felt far and wide. To address these challenges, a delegation comprising members of distributor and retailer associations is gearing up to engage with fast-moving consumer goods (FMCG) and retail companies. Led by Dhairyashil Patil, National President of AICPDF, these industry representatives are set to meet with companies in April to discuss the pressing need for margin adjustments.
Patil emphasized the significance of this collaborative effort, highlighting the unprecedented unity between distributors and retailers. “This is the first time that the distributors and retailers have come together. We are discussing in depth the challenges faced by distributors and retailers with the rise of quick commerce and e-commerce,” he explained. By pooling their resources and insights, these stakeholders aim to establish a robust network that can effectively advocate for margin increases.
Advocating for Fair Competition
Beyond addressing margin concerns, the AICPDF and its allied organizations are advocating for fair competition practices and regulatory oversight in the industry. Patil underscored the need for government intervention to protect gig workers and regulate the sale of perishable items through online platforms. By engaging with policymakers and industry leaders, the union seeks to ensure a level playing field that prioritizes ethical business practices over profit-driven motives.
Moreover, the union body has called for strict enforcement of Foreign Direct Investment (FDI) norms to prevent monopolistic practices and curb exploitative behaviors by e-commerce giants. Patil likened these companies to “new-age East India Companies,” drawing attention to their disruptive impact on traditional market structures. Through ongoing dialogues and strategic initiatives, the AICPDF aims to safeguard the interests of distributors and retailers across the country.
As the landscape of consumer goods distribution continues to evolve, the collective efforts of industry stakeholders become increasingly vital. By uniting distributors, retailers, and policymakers under a common agenda, the AICPDF and its allies strive to navigate the complexities of the modern market while upholding principles of fairness and sustainability. Through collaboration and advocacy, these industry players are poised to carve out a path towards a more equitable and resilient future for all involved.
