Mumbai: Get ready to shell out more at the supermarket. Surf, Tide, Real and Lux have become more expensive in the past three months. And soon, they will cost even more. In fact, most fast moving consumer goods or FMCG -- basically soap, shampoo and detergents -- are set to get more expensive. Rising input costs have spurred the hikes.
But manufacturers are not worried about sales falling. And they are sure consumers will continue to buy them.
"Volume growth last year across the board was 10 per cent. This year I expect it to be 15 per cent. And there will be price increases too. Both will continue in tandem. But we will see sales and profits in the FMCG sector," Adi Godrej, Chairman of Godrej Industries, says.
Retailers feel otherwise. They are certain rising prices will spell lower volumes -- customers will switch loyalties.
"People will move into a cheaper brands. If you're buying a Dove today, you might shift to a Pears or a lesser priced item tomorrow," says Kishore Biyani, Chairman of Future Group.
According to a recent study by AC Nielsen, 56 per cent Indians agreed supermarket brands were a good alternative to other brands while 62 per cent said private labels were good value for money.
Those numbers speak volumes for the fast-moving loyalties.
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