While FMCG growth rate has tumbled to less than half, some FMCG companies have cut prices of certain products to lever sales.
While FMCG growth rate has tumbled to less than half, some FMCG companies have cut prices of certain products to lever sales. While Hindustan Unilever brought down the prices of its personal care products by as much as double-digit in September, Parachute maker Marico also cut oil prices in its Parachute range. However, some FMCG companies also raised prices in the month amid the slowdown, a Kotak Institutional Equities report said on Monday.
These items got cheaper
One of the leading FMCG players HUL has rolled out major price cuts in the personal care segment with double-digit price cut in Dove body wash. The 190 ml SKU is now selling cheaper by 18% to Rs 115; it sold for Rs 140 before. The British company has also dropped the prices of its another popular brand Pears’ body wash range. The 250 ml SKU the product is now selling for 25% cheaper for Rs 135 from the earlier Rs 180. “This move could accelerate up-gradation to body wash from soaps,” analysts at Kotak Institutional Equities said in the report. After the price cut, Dove and Pears body washes are now at 20-33% discount to rival brands Fiama Di Wills, Nivea, Cinthol and Palmolive.
Parachute oils maker Marico has also reduced the price of its Parachute range’s Jasmine hair oil variant by 5% and its edible oil range of Saffola Active is now cheaper by 7%.
These items got costlier
However, the prices of certain consumer goods items have also gone up amid the ongoing slowdown. According to Kotak report, prices of toothpaste of various brands have gone up by 4-10% including Colgate Herbal, Ayush bulk pack, Pepsodent Germi check, Babool and Vicco Vajradanti. Further, Amul and Nestle have increased prices of select milk products by 3-6% and Nestle raised its milk powder prices by 4%. Nestle has also hiked the price of its Cuppa noodles and oats noodles under its noodle brand Maggi. Products under these variants are now costlier by 3-13%. Further, Tata Global Beverages Ltd has also increased price of Tata Tea Gold variant by 4%.
- The story was originally published at www.financialexpressonline.com on 21 October 2019.