Retailers Demand Technology Support to Compete with Quick Commerce Boom

New Delhi [India], December 24: The Federation of Retailer Associations of India (FRAI), which represents millions of micro, small, and medium-sized retailers, recently organized an event in New Delhi to discuss the growing challenges faced by traditional kirana stores in the wake of the rapid rise of quick commerce platforms.

During the event, FRAI members stressed the urgent need for enhanced technological support from the government to help kirana stores stay competitive against quick commerce giants like Swiggy Instamart, Blinkit, and Zepto. Retailers highlighted that such support could level the playing field, enabling local stores to compete with the larger e-commerce players.

With consumer preferences shifting toward faster delivery and lower prices, the FRAI members expressed a willingness to adopt new technologies to enhance efficiency and provide better services. However, they emphasized that without government intervention, small retailers would struggle to compete against the deep pockets of larger quick commerce companies.

The event also featured discussions on the growing threat posed by organized players in the retail sector. Retailers pointed out that the rise of e-commerce and quick commerce platforms is increasingly jeopardizing the existence of traditional kirana stores, which have been a cornerstone of the Indian retail landscape for decades.

In the face of these challenges, the FRAI members outlined the severe financial setbacks experienced by local retailers over the past few years, especially in the current inflationary environment. Many kirana stores are barely managing to stay afloat amid fierce competition and rising costs.

Praveen Khandelwal, a Member of Parliament from the Bharatiya Janata Party (BJP), attended the event and voiced his support for the cause of kirana stores. Khandelwal assured the attendees that the government, under the leadership of Prime Minister Narendra Modi, is aware of the challenges faced by small retailers and is committed to addressing their concerns. He acknowledged the difficulties that kirana stores are experiencing due to the growing influence of quick commerce platforms.

“Today is Bharatiya Grahak Divas, and I believe that both shopkeepers and consumers are two sides of the same coin. For shopkeepers, it is crucial to stay updated and embrace all channels to meet the evolving expectations of customers. I am committed to ensuring that traders and kirana store owners receive the best digital tools to connect with their customers, enabling them to modernize, update, and computerize their businesses for the future,” said Khandelwal, according to a statement by FRAI.

National Consumer Day, celebrated annually on December 24, underscores the significance of consumer rights in India.

At the event, Gulab Khoda, joint secretary of the Federation of Retailers Association of India, pointed out that the rise of quick commerce companies is significantly impacting kirana stores’ business. Khoda also noted that the discounts offered by quick commerce platforms are beyond the reach of local grocery stores, making it harder for them to retain customers and sustain their business.

The call for government support for local retailers highlights the need for policies and technological interventions to ensure that kirana stores can continue to thrive amidst the rapidly evolving retail landscape.