Honey,I shrunk the things!!!

Did you ever notice, sometimes, your favourite brand especially food and beverage reduces the weight or number of the product while maintaining the same price?

If yes, then read here to know why ?they do it and how it impacts you as a consumer. Its Shrinkflation!!!

What is Shrinkflation?

Shrinkflation is the practice of?reducing the size of a product while maintaining its price.

It is a form of hidden inflation.It is a strategy adopted by companies to maintain their profit margin during inflation.?

What are the reasons for shrinkflation?

The rising cost of production including prices of raw materials, labour costs, etc. causes shrinkflation, which reduces producers' profit. Further, intense competition in the market also contributes to shrinkflation.?

Thus, the producers reduce the weight, size or numbers of the product maintaining the price for the profit margin. The average consumer often does not notice a small change in the product.?

This is done mainly by the FMCG Industry to maintain its profit margin and also stay stable in this competitive market.

What is the impact of Shrinkflation?

It often leads to customer frustration. Customers may choose a substitute product.The risk of turning customers away from a product or brand is also associated once the consumer discovers the changes.

How Shrinflation can be tackled?

Shrinkflation is a caused due to inflation. It is a unfair practice to the customers. It can be fixed by making a change in economic policy on a macroeconomic level to counter inflation.

Thats it. Now you know Shrinkflation!!!

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