THE IMPACT OF INFLATION ON FMCG PRICING
This blog has been written by Gokul. B, student of 3 rd year B.B.A. LL.B. (Hons) at VIT School of Law. He’s more inclined towards legal research and understanding the core purpose of law.
ABSTRACT
Inflation as a longstanding macro economic issue has transformed the dynamics of operating and pricing in the Fast- Moving Consumer Goods (FMCG) industry in India. Dealing with the increased input costs and the changes in consumer behaviour, effective pricing strategy has taken center-stage to make real time adjustments in the overall business operations. This blog examines how pricing strategy research and different pricing research techniques are applied in handling inflationary pressures. Ranging between regional pricing, shrinkflation, and value engineering, the companies are integrating different techniques of pricing the FMCG products in a bid to stay competitive. This blog emphasizes the changing nature of FMCG pricing strategy where the businesses have to face cost pressures, as well as retain volume and brand loyalty. Finally, the blog offers an in-depth analysis on inflation adaptation of FMCG strategy providing an insight into how to combat inflation by strategically innovating price, chain, and streaming with consumers.
