Cos unbundle multipacks in slowdown
Mumbai: Consumers are becoming price-conscious in select categories of FMCG and packaged foods, slowing down their sales. In such segments, marketers said purchasers are not buying bundled or multipacks (packs of two or three products packed together and sold at a slight discount).Basically, consumers are mostly not ‘pantry loading’ for a whole month.
Gits Food noticed that consumers were not taking the bundled pack of two Gulab Jamun mix packs for Rs 100, and were instead asking the retailer for a single pack at Rs 50. “We swooped in with an offer of 50% extra at Rs 50-price point and it has clicked with consumers,” said Gits Food director (sales & marketing) Sahil Gilani. The same consumer who does not see value in buying two packs of Gulab Jamun mix in one go, however, does not mind buying larger packs of, say, a breakfast mix like idli/dosa. The insight here, according to Gilani, is that even in a downturn consumers continue to buy regular use items in bulk packs.
Take the toilet soap, for instance, which is a daily use product where there is bund
However, the same consumer who doesn’t see value in buying two packs of a gulab jamun mix, doesn’t mind buying larger packs of a breakfast
mix like idli/dosa ling in large volumes. Wipro Consumer Care president (India - consumer care business) Anil Chugh said the company is not seeing any trend of bundled packs moving to single in soaps. “We are not seeing a shift in that,” said Chugh.
Marico chief marketing officer Koshy George said, “In smaller towns and villages, when discretionary spends come down during an inflationary environment or a slowdown, consumers tend to cut down on outlays by shifting to smaller packs. However, since Marico is not into multipacks, we are not witnessing any dramatic shifts from larger packs to smaller packs.”
A modern trade expert said currently there is a need for brands and retailers to work together in growing consumption by allowing consumers to buy more items and products in each bill. “Data suggests some categories are growing well. But a few have slowed a bit in terms of growth. And in times like these, rather than multipack offers in those categories, pricing on single packs can allow more items per bill, growing average bill value as well as consumption of more categories,” said Spencer’s Retail MD & CEO Devendra Chawla.