Inflation: FMCG majors on a reinventing spree
Rising inflation is forcing FMCG majors to reposition their product lines to prevent consumer shift. Tips to beat inflation I War on inflation | All Headlines
By Aparna Ramalingam, TNN |
CHENNAI: Rising input prices, inflation and increased commoditisation of products are forcing FMCG companies to reinvent themselves. While some are repositioning their product lines, others are busy reworking on packaging.
���Consumers tend to switch products especially in those categories where differentiation is thin,��� says Samuel Chandar, vice president (HR and commercial ), Henkel India.
With double digit inflation looming large on the horizon, FMCG majors are first getting their packaging act together.
���We are reworking on those SKUs and packet sizes which are frequently purchased,��� says Chandar. The company recently brought out its popular Fa deodorant in 75 ml and Margo soap in 40 grams. The other popular product in the stable, dishwashing detergent Pril is already available in sachets.
Henkel is also strengthening its distribution and logistics . ���The whole idea is to bring in more efficiency and innovation in the supply chain. We are closely monitoring our stock levels and loading patterns ,��� adds Chandar.
Others like CavinKare are using the price tool to combat inflation.
���Consumers tend to switch products especially in those categories where differentiation is thin,��� says Samuel Chandar, vice president (HR and commercial ), Henkel India.
With double digit inflation looming large on the horizon, FMCG majors are first getting their packaging act together.
���We are reworking on those SKUs and packet sizes which are frequently purchased,��� says Chandar. The company recently brought out its popular Fa deodorant in 75 ml and Margo soap in 40 grams. The other popular product in the stable, dishwashing detergent Pril is already available in sachets.
Henkel is also strengthening its distribution and logistics . ���The whole idea is to bring in more efficiency and innovation in the supply chain. We are closely monitoring our stock levels and loading patterns ,��� adds Chandar.
Others like CavinKare are using the price tool to combat inflation.
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���We offer the lowest SKUs (meaning sachets) and consequently the lowest price points. In a way we have blocked this segment of the market and the presence of lowest SKUs and lowest prices will definitely prevent shift and substitution,��� emphasises Vineet Trakroo, vice president, marketing, Cavin Kare. | | | Also Read |
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Even if consumers don���t switch to cheaper substitutes during inflation, they normally switch from higher SKUs to lower SKUs of the same product.
���We believe that processed foods particularly juices that are based on the health platform would see stronger growth,��� says KK Chutani, general manager-marketing (foods), Dabur India, which is positioning its productas like juices on the health plank.
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