In a recent report, FMCG distributor body All India Consumer Products Distributors Federation (AICPDF) highlighted that as many as 2 lakh kiranas shops have shut down due to the rapid rise of quick commerce. The conversation around the quick commerce players eating into the share of kirana shops has been ongoing since quite some time.
Impact of Quick Commerce on Kirana Stores – Metro Areas Hit Hardest
As per the report of AICPDF, kirana stores of metropolitan areas are the most impacted ones due to the rapid rise of quick commerce platforms. Out of total shutdowns, Metros comprise of 45%, Tier 1 and Tier2/3 cities accounting for 30% and 25% of shutdowns.
As per the National President of AICPDF, Dhairyashil Patil, “Quick commerce has been active and aggressive for approximately the last eight months. The effect of quick commerce is primarily felt in metro cities and some Tier 1 cities.”
Experts Raise Concerns Over Quick Commerce Threat to Kirana Stores
This report comes during the same that the CEO of Zomato, Deepinder Goyal, said that the quick commerce platform Blinkit is not eating the shares of kirana stores but of e-commerce platforms. A similar sentiment was echoed by Delhivery cofounder and CEO Sahil Barua.
However, it was highlighted by Patil that quick commerce platforms often focus on predatory pricing, which in turn, harms kiranans. He said that “Currently, online, e-commerce, and quick commerce platforms have fostered a mindset that if a product is sold online, it must be discounted, often heavily. As a result, these companies are offering as much discount as they can to establish a market monopoly”.
He added that the goods discounted for up to 75–80 per cent are neither realistic nor sustainable for any company, especially with promises of 10-minute delivery.
Seconding his opinion, Yashwant Lodha, co-founder of fintech start-up PayNearby, said that predatory pricing is indeed a concern for kirana stores and said “There is a clear realisation among kirana stores that quick commerce is hampering their business. It is not a matter of speculation; this impact is already occurring, and therefore, they need to take action to address it”.
His company partners with neighbourhood retail stores to enable assisted financial and digital commerce services for local communities.
