{"id":23164,"date":"2025-01-11T18:49:30","date_gmt":"2025-01-11T18:49:30","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/marketing\/fmcg-bets-on-access-packs-to-boost-demand-et-brandequity\/"},"modified":"2025-01-11T18:49:30","modified_gmt":"2025-01-11T18:49:30","slug":"fmcg-bets-on-access-packs-to-boost-demand-et-brandequity","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=23164","title":{"rendered":"FMCG bets on \u2018access packs\u2019 to boost demand, ET BrandEquity"},"content":{"rendered":"


\n<\/p>\n

\n

<\/p>\n

<\/p>\n

\"<p>Representative
Representative image<\/span><\/figcaption><\/figure>\n

A prolonged urban slowdown is prompting makers of daily essentials to roll out smaller, lower-priced packs of premium products to boost demand across categories, from soaps and shampoo to snacks and frozen foods.<\/p>\n

Hindustan Unilever<\/a>, Britannia<\/a>, ITC<\/a>, Godrej Consumer Products<\/a>, Colgate Palmolive<\/a> and Adani Wilmar<\/a> are all introducing \u2018access packs\u2019 of premium brands across traditional and modern retail channels, including kirana stores, to target price-sensitive consumers amid muted urban demand.<\/p>\n

HUL, the country\u2019s largest FMCG<\/a> company, recently launched a Rs 10 pack of its Surf Excel Liquid, a sharp drop from its earlier entry price of Rs 110. Similarly, Colgate has introduced select premium toothpaste variants at Rs 80, down from the previous lowest price of Rs 170.<\/p>\n

\"\"\/
<\/figcaption><\/figure>\n

\u201cThe introduction of smaller access packs for premium products can help in increasing their accessibility, especially in pricesensitive markets,\u201d said Rajneet Singh Kohli, executive director at biscuits and dairy products maker Britannia Industries.<\/p>\n

Britannia has introduced, as a first to India, ambient cheese sachets at Rs 15 each even as its Laughing Cow Creamy Cheese Triangles packs are being retailed at Rs 150 each for 120 gm packs. \u201cWe see this as an opportunity to expand market reach, sustain demand, and build aspiration for premium offerings,\u201d Kohli said.<\/p>\n

The company is adopting a similar segmented strategy with its other premium products such as Pure Magic Chocolush, Bourbon, Cake Muffills and Gobbles.<\/p>\n

The trend has gained ground as urban consumers put off consumption for the fourth consecutive quarter in October-December 2024, impacted by inflation, low wage growth and higher housing rentals.<\/p>\n

FMCG volume growth, or the number of packs sold, in urban India declined to 2.8% in the quarter from 11% a year earlier, market researcher NielsenIQ said. Rural markets, on the other hand, grew 6% year on year by volumes in the quarter.<\/p>\n

NielsenIQ has not yet released data for the October-December quarter.<\/p>\n

\u201cSmall packs are a game changer, be it cookies, chocolates, butter, cheese, or any premium category,\u201d said Jayen Mehta, managing director of Amul. \u201cYou have to give the consumer an opportunity to try your product.\u201d<\/p>\n

Amul is selling access packs across its premium range of butter and almond cookies and ice-creams at its upscale Ice Lounges.<\/p>\n

Consumer goods companies are making such moves to infuse price-sensitive and economy consumers to the market, Nuvama Institutional Equities wrote in a report on the consumer sector outlook on Friday. Surf Excel liquid is being sampled in small packs in calendar 2025 almost three times more than last year, it said.<\/p>\n

\u201cCompanies have started large-scale sampling of premium products to educate and develop a market,\u201d the report said. \u201cPremiumisation in personal as well as home care is being driven by access packs in general trade. The strategy works on two fronts\u2014access and availability.\u201d<\/p>\n

Soaps to staples maker ITC has introduced Fiama gel bathing bars of 75 gm at Rs 40 each\u2014at less than half the price of regular 125-gm packs at Rs 95. The company has started pushing mini packs of some of its other premium brands as well, such as Engage EDP fragrances in 25 ml packs priced at Rs 249 each in general trade and Dark Fantasy Chocofills cookies at Rs 10 each.<\/p>\n

Godrej Consumer Products has introduced a Rs 99, 15-gram pack of its Hit anti-roach gel \u201cto enhance accessibility with a smaller, more cost-effective variant,\u201d as the company said.<\/p>\n

\u201cIt is critical that we provide effective solutions that are accessible to every household,\u201d said Shilpa Suresh, head of marketing\u2013home care at GCPL.<\/p>\n

The company is also pushing Goodknight Chhotu Liquid at Rs 50 and refills for Rs 35, which, it said, costs Rs 2.5 for a night\u2019s use.<\/p>\n

Executives said they are hopeful that smaller packs would not only drive trials but also push impulse purchases and prevent consumers from switching to lower-priced local brands\u2014more so in general trade or neighbourhood kirana grocery stores, where urban demand is particularly under pressure.<\/p>\n

Citing data sourced from research firm NielsenIQ and retail intelligence platform Bizom for the fiscal third quarter ended December, executives said sales of daily essentials and groceries grew 3-5% by volume compared to a year earlier, driven primarily by rural markets.<\/p>\n

Urban demand, though, continues to be under stress, with consumers buying either smaller packs or lowerpriced regional brands<\/p>\n

\u201cCompared to the second quarter, edible oil prices in the December quarter were about 25% higher. This significant price surge resulted in consumers downgrading their purchases and a reduction in stock at the trade level,\u201d Adani Wilmar, maker of Fortune staples, said in a management commentary post its third quarter earnings.<\/p>\n

\n