FMCG distributors seek level-playing field

New Delhi: Distributors of fast-moving consumer goods (FMCG) have sought a “level-playing field” with the leading B2B retailers from the makers, failing to which they have threatened to drop products from their portfolio.

All India Consumer Products Distributors Federation (AICPDF) has written to FMCG companies against the price disparity between traditional distributors and other organised business-tobusiness (B2B) distribution firms, both online and offline, which have entered the sector in the last few years. The federation had said it has decided to call for a “noncooperation” movement against FMCG companies from next year if B2B retailers such as Jiomart, Walmart, Metro Cash & Carry, Booker, ElasticRun, Udaan etc.

“If the companies are not able to give us a level-playing field then we will drop the product sold by Jiomart/ B2B companies from our portfolio,” said AICPDF.

Speaking to PTI, AICPDF President Dhairyashil Patil said rates and schemes given to the retailers are governed by the FMCG companies and the distributors have no say in the entire process. “If the brands are the same, then how could the same products land in the market at two prices,” he said.

According to him, sometimes discounts are even lesser than the landing price of distributors. “We need price parity in the market,” he said.

B2B retailers are offering FMCG products to the retailers and local shops at lower prices and it is now “adversely affecting” the distributors reputation and goodwill.

“Hence our demand is that we also receive those products at prices at which we can also offer the same prices as Jio Mart /B2B companies,” the association said in an open letter to FMCG companies, a copy of which was also shared on their Twitter handle.

Moreover, they would also “not launch any new product of the company” unless they get an undertaking from the FMCG makers that the said product is not available with B2B retailers.

According to them, they would not be able to take primary targets from the company as B2B companies are selling the same products in the same area. Moreover, they have also decided not to take back expiry and damaged products for replacement as they were not in a position to distinguish the product sold to the retailers by B2B or by their network. -(PTI)