CUTTING PRODUCT SIZE MAY REDUCE COSTS, BUT SALES CAN TUMBLE TOO
January 1st, 2012
BY RAGHAVENDRA VERMA, IN NEW DELHI, AND LEAH GERMAIN, IN EDMONTON
IT is an obvious strategy. When ingredients' costs rise, shaving a few grams off the weight of a personal care product can save manufacturers money. But the risk that consumers will notice and ditch a brand is real, experts warn. The issue is a live one in India at present, where the soap industry is predicting a fall in revenue when a new government-mandated limited pack size structure comes into force in July. But some might say the soap-makers only have themselves to blame. To keep profit ...
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