Cos un­bun­dle mul­ti­packs in slow­down

The Times of India (New Delhi edition) - - Times Global - Nam­[email protected] times­

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.

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