FMCG Cos Put Few New Items on the Shelves

Consumer product companies have cut back on product launches this year as they wait for cost pressures to recede before introducing more products and variables. There have been two product launches per week on an average in the fast-moving consumer goods (FMCG) segment in the first half of the year, down from last year’s average of one new product every alternate day, according to data available with market researcher IMRB International. Consumer product companies confirm the slowdown in product launches, but say they will be able to roll out new variants and products within their existing segments in the coming months when input costs are expected to decline, although entry into new categories will be put off to next calendar.
“Some of the more expensive introductions were postponed from the fourth quarter of last fiscal (January-March) to later this fiscal because of high inflationary pressures,” says Dabur India Chief Executive Officer Sunil Duggal.
Companies clearly want to keep their expenses low in the face of rising input costs and packaging expenses. “There have been petrol price hikes thrice already this year and commodity costs are not going down either. All actions, whether to launch new products or increase ad spends, have been linked to these cost pressures. Hence, companies are getting cautious,” says Wipro Consumer Vice-President Anil Chugh.