FMCG companies tuning products to cash-strapped consumers’ means
The makers of cereal, toiletries and other supermarket staples in Bangladesh are increasingly attempting to reshape their product lines to keep cash-strapped consumers from trading down as the coronavirus pandemic continues to limit financial activities and cut incomes of millions of people.
Some fast-moving consumer goods companies are rolling out new brands at less price range and initiating price cuts while others are offering more affordable pack sizes and bundle packs and free deliveries.
"We've already offered economy bundles for a few products where prices will be comparatively lower," said Jesmin Zaman, head of marketing of Square Toiletries.
One instance is its offer of baby powder with a pack of diapers.
Square Toiletries sells products under brands such as for example Senora, Jui, Meril, Revive, Kool, Zerocal, Sepnil, Magic and White Plus.
The company is focusing on bringing out a cheaper version of its already low-cost sanitary napkin brand Femina.
"We are doing this so that people stick with us even after their reduced purchasing capacity," Zaman said.
Another such initiative to hook customers is Marico Bangladesh's rollout of hand wash and hand sanitiser through the Mediker SafeLife range under a "no profit" commitment for the first six months.
"We've launched it as a commitment to your consumers and society during this time period of crisis," said Christabel Randolph, director for legal and corporate affairs of the Bangladesh subsidiary of the Mumbai-based company.
This new range gives some relief to consumers in the problem, she said.
Marico's brands include Parachute Coconut Oil, Parachute Advansed, Hair Code, Saffola Active, Set Wet and Parachute Advansed Body lotion.
Regardless of the rising prices of recycleables and transportation cost, ACI Consumer Brands says it has refrained from hiking the costs of its products.
"Our consumer products have a thin profit margin, so we've little scope to cut prices," said Syed Alamgir, managing director of ACI Consumer Brands, adding that now these were concentrating on service, not profits.
ACI can pride itself for owning several brands which may have gone on to become a household name in Bangladesh such as for example ACI Aerosol, Savlon, ACI Mosquito Coil, ACI Pure Spices and Flour.
The move from the FMCG companies comes as the pandemic continues to shrink consumers' pockets.
A substantial number of Bangladeshi households aren't working and experiencing meaningful financial pressures.
About 74 per cent of the families have seen a decrease in income as a result of the coronavirus pandemic, according to a fresh study of Brac, Data Sense and Unnayan Shamannay.
In the first week of the month, the Asian Development Bank said the coronavirus pandemic would cut 37 lakh jobs in Bangladesh.
One in five among the members of the labour force in Bangladesh were without jobs in April, said Rizwanul Islam, a former special adviser for the employment sector at the International Labour Office in Geneva.
And the near future looks equally bleak.
The World Bank has forecast the Bangladesh economy would grow by 2 % to 3 % this fiscal year and 1.2 % to 2.9 per cent within the next fiscal year.
Golden Harvest has introduced new vegetables and packaging in its selection of frozen foods to reduce the labour required in the home since many might no more have the ability to afford domestic house help.
"We have plans to offer our products in bulk quantity in order that the purchase price becomes lower," said Rajeeb Samdani, chairman Golden Harvest, whose portfolio ranges from milk products to frozen foods.
The company is focusing on a low-profit margin to help make the products affordable and bring convenience to people's lives, he said.
"To facilitate consumers through the COVID-19 period, we've introduced free home delivery service by which, for the time being, consumers can buy products at a price lower than the maximum retail price," said Naquib Khan, corporate affairs director of Nestlé Bangladesh, the neighborhood functions of the world's biggest packaged foods maker.
This is to help consumers save while continuing to take pleasure from tasty and nutritious Nestlé products, Khan added.
Nestlé sells products under its world-famous brands such as for example Nescafe, Maggi and Nido.
