FMCG Companies Will Let Distributors Choose What Sizes Of Products To Sell

New Delhi, Oct 4 (KNN) Fast-Moving Consumer Goods (FMCG) companies will give distributors flexibility in selecting Stock Keeping Units (SKUs) size packs, reported Hindu BusinessLine.

Concerns regarding the distribution of lower-priced SKUs that were targeted at the rural market were raised by the All India Consumer Products Distributors’ Federation (AICPDF).

The federation, which approached the Ministry of Public Distribution, has asked the companies to categorise products into entry packs, small packs, and medium and large packs, for easier 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,” said Shammi Agarwal, Director of Pansari Group. 

“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,” added Agarwal.

The AICPDF had cited confusion with pricing, management of inventory and retailers’ reluctance.

“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 said they are maintaining standard pack sizes that have helped them in product sales.

“Packaging plays an essential role in expanding our local presence In FMCG. Right fr0m 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.  (KNN Bureau)