FRAI claim business crisis, urges govt to support in competing with e-commerce

The Federation of Retailer Association of India FRAI which represents nearly 80 lakh micro small and medium retailers and 42 retail associations across the country has appealed to the government for urgent support to protect small retailers who are facing a serious survival crisis due to the rapid growth of ecommerce and quickcommerce platforms an official statement saidThe FRAI marked the 9th National Retailers Day in New Delhi on WednesdayFRAI highlighted that platforms offering deep discounts fast delivery and heavy marketing are reshaping consumer behaviour As a result local grocery and kirana shops are losing customers and experiencing a sharp fall in salesMarket studies show that around two lakh kirana stores shut down last year as customers shifted to quickcommerce services like Blinkit and Zepto A December 2024 JP Morgan study on Mumbairsquos grocery market also reported that 60 per cent of offline stores saw a drop in sales because of nearby dark stores operated by such platforms the statement saidFRAI said that instead of supporting small shopkeepers to grow many large ecommerce companies often backed by foreign funding are reducing them to gigworkers by turning them into delivery agents This they warned weakens entrepreneurship and leaves former shop owners with uncertain incomes and little protectionThe association called for a fair and balanced support model to protect local retailers and the livelihoods of millions who form the backbone of Indiarsquos informal retail economyThey urged the government to provide kirana shops with a dedicated technology platform so they can compete fairly with ecommerce giantsRetailers at the event suggested creating a ldquoBharat Taxilikerdquo digital system where customer orders are sent to nearby kirana shops and the order goes to the first shop that accepts it They said this would promote fair competition and could include a customerrating feature to encourage better service standards the statement saidSpeaking at the event Abhay Raj Mishra Member and National Coordinator of the Indian Sellers Collective and Honorary Spokesperson of FRAI said Small retailers and kirana shopkeepers are facing an unprecedented challenge as ecommerce and quickcommerce platforms reshape the market These familyrun businesses are struggling against companies with deep pockets The government must create a fair competitive environment and empower local retailers with the right technology Platforms like ONDC offer hope by giving small businesses visibility digital access and a level playing fieldFRAI also stated that the governmentbacked ONDC Open Network for Digital Commerce can play a crucial role in supporting small retailers ONDC moves away from platformcontrolled marketplaces and creates an open neutral network where buyers and sellers can transact using any compatible app For kirana stores this means lower costs more visibility and the freedom to choose how they sell online the statement further saidAccording to FRAI ONDC can become even more effective with the right improvements These include easier onboarding for sellers practical digital training and smoother operational processes They also recommended standardised service levels across apps stronger logistics partnerships better incentives for sellers and a unified rating and trust system for all usersFRAI said these steps would help protect entrepreneurial freedom and strengthen the livelihoods of lakhs of small retailers and kirana shop owners across India