FMCG Companies: FMCG companies have made a new plan to deal with the rapidly increasing inflation across the country. Companies manufacturing everyday use products have decided to reduce the weight of the product to meet the challenge of inflation. Apart from this, companies have also launched ‘Bridge Packs’. Let us tell you that the bridge pack is the product between the maximum and lowest price of any product.
Did not have to increase the price of the product
Let us tell you that due to weight loss, these companies have not had to increase the prices of packaged products. Companies are taking such a step mainly targeting the consumers of low income group. Apart from this, these companies have increased the price of large packets of a product. However, this increase is also less than 10 percent.
Using cheap packaging
The ban on palm oil exports from Indonesia and the geopolitical crisis caused by the Russia-Ukraine war has led to a steep rise in construction costs. To counter this, FMCG manufacturers are using cheaper packaging, recycled products and cutting down on advertising and marketing expenses.
Know what the officer said?
Due to rising commodity prices and skyrocketing inflation, consumers want to spend less and buy ‘Low Unit Price (LUP)’ packs so that the budget does not get disturbed. Mohit Malhotra, CEO, Dabur India said, “The per capita income and spending capacity of consumers in urban markets is high, so we have increased the prices of larger packs. LUP packs are sold in rural markets, the weight of the product has been reduced for them.
There is no sign of inflation coming down in the coming quarters. In such a situation, instead of increasing the price, many companies have cut the weight of the products. Mayank Shah, Senior Category Head, Parle Products, said that the consumer trend has shifted towards value packs and the sales of LUP packs have increased somewhat. Edelweiss Financial Services Executive Vice President Abneesh Roy said consumers are buying smaller packs to save money and this is happening across all FMCG categories.