We all remember fighting with our parents in the grocery store to buy our favorite snack "the 2-minute noodles". Still, the 2-minute noodles remain one of the favorite snacks in our lives. The price of the noodle pack has been almost similar over the years. Have you ever wondered, how the brands maintain this same price range? Yes, you guessed it right, they keep the price almost similar to retain the customers but reduce the quantity to retain their profit. The surprising part is that consumers or end users usually do not notice this change immediately.
The mindset of the people who go to the grocery store with their kids, the ones who shop after a tiring day at the office just want to grab the items, bill them, and walk out of the store as early as possible. These people become an ideal set of target groups for Shrinkflation. This is becoming more common in the FMCG industries. Brands justify this act saying that in a country like India, food demand remains volatile as there are plenty of options to choose from. And whenever a new brand or product is launched people tend to switch between brands. Moreover, the raw materials cost is also fluctuating now and then. Hence brands say that Shrinkflation is a successful way of retaining customers and maintaining a profit.
What is your point of view on this? In which brands or products have you observed shrinkflation? Let's discuss in the comments section.
