Deep Discounting by Quick Commerce Firms Erodes Brand Value, AICPDF Alerts FMCG Industry

The All India Consumer Products Distributors Federation (AICPDF) has cautioned the FMCG industry about the adverse effects of deep discounting practices by quick commerce platforms. AICPDF urged FMCG companies to monitor these platforms, emphasizing that their pricing strategies are undermining brand value and harming traditional distributors and retailers.

The All India Consumer Products Distributors Federation (AICPDF) has issued a stark warning to the FMCG industry regarding the adverse impacts of deep discounting practices employed by quick commerce platforms. An open letter addressed to FMCG companies highlighted concerns over predatory pricing models that are eroding brand value and disrupting established distribution networks.

According to the AICPDF, which represents around eight lakh FMCG distributors, these pricing strategies create unrealistic consumer expectations and significantly undermine the traditional retail ecosystem. The federation called for immediate intervention from FMCG companies to regulate pricing and protect brand integrity.

Quick commerce platforms, recently valued at approximately USD 5 billion in India, promise rapid deliveries within 10-30 minutes and have become a pivotal growth driver in the grocery shopping sector. However, the rapid rise of these platforms is posing severe challenges to the FMCG distribution network, prompting the AICPDF to seek a regulatory probe into alleged anti-competitive practices.

(With inputs from agencies.)