Thursday, December 14, 2006

Small is Out.

Well just tonight I came across this article in The Economic Times regarding the FMCG products. The miniature packing which changed the scenario in the 1990’s has taken a different turn in the present situation. Shampoo sachets, one cup tea dip packets, four biscuit packet (of Parle G), and even the Parachute one rupee tube are all loosing their hold in the market. The small time retailers avoid stocking them for the reasons of pilferage and inconvenience in display. On the other hand the super markets claim that the consumer entering into a Big Bazaar or D Mart comes with the intension to purchase in large quantity. Therefore sachets do not match the consumers purchasing pattern in case of big players.

One of the observations made by the retailers is that the consumers do not buy single packets but in multiple on fives which makes it a tedious job for the retailer to stock, count and account for.

One other distinct reason for the low unit packs to be out of favor in organized retail is the narrow price differential between the small and large packs. In 90’s sachets defied conventional wisdom and were, in fact, cheaper compared to larger packs.

Chutney powder, pickle packets made things easier in the south Indian house holds. Shampoo sachets were found convenient to use because each sachet provided with the exact amount of quantity to be used and more over is helped in reducing over spilling of the content when used by kids.

But slowly and gradually these packets are vanishing from the market. But tell me one instance when u actually think of buying these packs??? Oh! The picnic bag or a hiker’s kit stocks all things that are small, smaller and smallest. So definitely, though really very small but a market still exists.

(And by going to hikes all through the year I and you will surely keep the market up and alive and never let it die).

1 comment:

tardyturtle said...

i knw how excited u were while shopping for da hike...and so i wont be too critical while commenting....but what is ur blog abt?small products...da kiranas...or ?!?!?!