FMCG companies will provide distributors with the option to choose from a variety of Stock Keeping Units (SKUs) in different pack sizes, offering greater flexibility.
Previously, the All India Consumer Products Distributors’ Federation (AICPDF) had expressed apprehensions regarding the distribution of lower-priced SKUs specifically aimed at rural markets.
The federation, in its engagement with the Ministry of Public Distribution, has requested companies to classify their products into entry-level packs, small packs, and medium to large packs to facilitate smoother distribution.
“Currently, navigating the market is fairly difficult because every brand uses a different packaging approach, frequently adapted to certain regions and locations. For instance, some brands sell cooking oil in 12-litre cartons, while others sell it in 15- or 20-litre carton sizes. We give retailers and distributors the option to order 5-pack cartons, thus improving storage and broadening the range of products available for display and sale. This strategic initiative is designed to offer our valued retailers and distributors increased flexibility. They now have the choice of selecting multiple ranges of products but in lesser quantities, simplifying storage issues, and expanding the array of products they can showcase and provide to their customers. We are now introducing smaller packaging options for some of our best-selling items such as ike gluten-free flour and IndiMix,” said Shammi Agarwal, Director of Pansari Group.
The AICPDF had mentioned issues related to pricing confusion, inventory management, and retailers’ hesitancy as key concerns.
“The difference in per-gram pricing among the numerous SKUs within the same price bracket leads to consumer confusion,” the body said in a letter.
Companies have stated that they are sticking to standardized pack sizes, which have proven to be effective in boosting product sales.
“Packaging plays an essential role in expanding our local presence In FMCG. Right from the outset, we have maintained a commitment towards ensuring the consistency and clarity of our packaging. This thoughtful approach helps prevent any doubts related to the product’s weight and pricing. Even during the challenging times of the Covid-19 pandemic, we remained firm in our decision to retain our standard pack sizes,” said Manish Aggarwal, Director of Bikano, Bikanervala Foods Pvt Ltd.
