Magic price tags no longer cast a spell on shoppers
daily essentials and grocery products with price tags of ₹5 and in many cases ₹10, often called popular or magic price points, an indication of consumers upgrading their shopping basket or opting for larger packs that offer them more grammage for every rupee spent.
In several categories including noodles, chocolates, detergents, toothpaste, soaps and dishwash, contribution especially of ₹5 packs has fallen over the past four years while it has stagnated in biscuits, according to latest data by Kantar. Under ₹2 shampoo, however, is an exception, and saw its share expanding as people buy sachets in bulk especially in rural markets.
«We are witnessing the emergence of ₹15 to ₹25 price points, reflecting a broader trend of upgradation across fast moving consumer goods categories. Consumers across all segments are increasingly looking for value across various price points, suggesting a shift towards higher grammage and premium options even during inflationary times,» said Neeraj Khatri, chief executive, Wipro Consumer Care.
These price points typically do not bring in high volume into the brand or category, but instead help in new households through accessible pricing even for premium brands. However, ₹5 packs, that historically dominated most of the category, are becoming passe as households prefer 'larger' small packs, say experts.
«These price point packs are generally viewed as penetration packs, and therefore, there is a certain case to be made that the ₹10 pack is gradually becoming a key penetration pack for
