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As inflation soars, sale of low-unit price packs jumps; FMCG companies go for grammage cut, bridge packs

-PTI/ Financial Express

Downtrading refers to the practice of switching from expensive products to cheaper alternatives by customers in a bid to conserve cash.

FMCG manufacturers are opting to reduce product weight rather than price of items targeted at lower-end consumers, while resorting to single-digit price increase on some large packs and launching ‘bridge packs’, as they seek to overcome the impact of commodity price rise and unprecedented inflation.

Besides, they are also using economical packaging, recycled products, and cutting spending on advertising and marketing to counter sudden spur in costs due to geopolitical crises such as the Russia-Ukraine War as well as the export ban of Palm oil from Indonesia.

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