Shrink-inflation: Consumers exhibit guilty brands
By Felicia Nwosu
For quite some time, consumers across the markets nationwide have continued to groan and lament over shrink-inflation without brands batting an eyelid to empathise with them. To demonstrate their pains, they have taken the testimonial route, sharing their personal experience by exhibiting shrink-inflated products for all who care to see and listen. This is their way of registering their grouse on the sneaky way brands are ripping them off their hard-earned money.
Shrink-inflation, which is also known as the grocery shrink-ray, deflation, or package downsizing, is gradually becoming the go-to method for manufacturers to cope with the rising cost of production. It involves the shrinking of a product size or even watering down the quality of their products in the face of rising costs. This practice seems to be prevalent among FMCGs companies.
However, shrink-inflation did not work in the Carbonated Soft Drink (CSD) sub-sector because when leading brands such as Coca-Cola and Pepsi gave it a trial, Bigi countered with a disruptive market entry that forced the leading brands to readjust.
The average consumer of today is very critical and concerned about shrink-inflation because it is seen as devaluation by stealth, especially when manufacturers failed to legally notify or alert consumers of their intention to shrink a size or increase the product price. The adverse effect is that it restricts consumers’ ability to make informed purchasing decisions. They, therefore, complain bitterly and vent about products whose quantity has been drastically reduced while maintaining the same price or products with the same old weight specification but higher prices. These sharp practices are rampant in dairy, peanuts, detergents, canned fish, beverages, and many other market segments.
In our investigation, MARKETING EDGE went to town and interviewed some consumers about their experiences and feelings about this practice.
Madam Nkechinyere lamented that shopping is no longer as fun as it used to e. she said because of this practice, she was forced to increase the quantity purchased which has left a big hole in her pocket and limited her shopping to the essentials. “Before, when I buy Good Mama detergent, the medium size, I used to pay N350 for a roll of four sachets, but now, if I buy the same quantity, it doesn’t fill the container like it used to, it is even smaller and the price is now N600 for a roll”.
Another consumer, Mr. Modest, complained about the reduction in the sizes of some of the snacks. “I love some of these snacks like Minimie chin- chin, it used to be N50, but now, it’s N100, as for the quantity, what you find is bogus wrapper with little quantity of chin-chin in it, you can even count the quantity. It is very annoying, honestly”.
Mrs. Roseline, a housewife also complained that toothpaste brands and match sticks are also in the league of products that have been shrink-inflated or with increased prices. “These days, everything has increased in price but the quantity is not increasing, instead what you see is only air inside the container especially products like toothpaste, sachet & tomatoes.
Some customers take their vent to social media.
Duvie @lazyreo stated on Instagram said, I know there is inflation in Nigeria and all, but common now @Nestle, this is just ridiculous. Just increase the price rather than sell (to) people half-full tins. This is a brand new tin I opened and it is literally half full!!!
Replying to the above, Usman Rilwan @usmanrilwan4 said, “Na Ovaltine worse pass, so just manage your Milo tin because it looks fuller than this.”
Earl Joey @earljoey said he’s reminded of this one. “These people don’t rate us. My own no even reach half”, he said satirically.
Ur, favorite Ankara Plug was also exasperated by milk. “The same thing I was complaining about this morning. See Peak Milk I bought for my children, it’s less than half full in the sachet. Haba!
Even ay food is not spared as experienced by Best Remo Shagamu @LanreCustomize, “Please, I don’t understand @Nestle again, I just bought this NAN for my babies today half filled”
Commenting on the practice of shrink-inflation, Muda Yusuf, former Director-General, Lagos Chamber of Commerce and Industry, identified reduction in content, quality, and hike in price adopted by manufacturers as a survival strategy to respond to an increasingly challenging operating environment.
Mr. Yusuf stated that in a bid to survive the economic hardship, many brands are now reviewing their operating models due to the fact that there are some products that once their prices are increased, the consumers walk away completely from them. He suggested that the best strategy while implementing short-term interventions, especially for FMCG, is to reduce the quantity and maintain the price.
“This is easier for brands to get away with rather than increasing the price which could lead the brand to lose its market share.”
Boye Adefila, Marketing Coach and CEO of Downtoearth Marketing Services, noted that most brands practice shrink-inflation in a very subtle manner that is difficult for consumers to notice while challenging brands to update product information along with other changes that evolve with the product.
“Nobody is telling brands not to reduce size or volume, but not at the old information displayed on the pack.
He advised that consumers seek redress when they are not satisfied through various regulatory bodies.
“The real player should be the Consumer Protection Council of Nigeria, but they need a better process and collaboration from the likes of National Agency for Food and Drug Administration and Control (NAFDAC), the Advertising Practitioners Council Nigeria, APCON, and the Nigeria Police Force.
Meanwhile, the Federal Competition and Consumer Protection Commission (FCCPC) through its Executive Vice Chairman, Mr. Babatunde Irukera has urged consumers to seek redress directly from manufacturer, importer or distributor in line with Sections 136 and 116 of the FCCPC Act. This initiative, according to some consumers, does not cover shrink-inflation or empower them to take action against the brand.
According to him, the Act stipulates that manufacturers, importers, or distributors of goods are required to label or describe the goods in a manner that would be easily traceable to them to enable consumers to reach them.
The Commission also said that consumers could file a complaint to the Commission where producers or providers failed to comply with the law, including concerning return, repair, or refund.
”They have to also provide an implied warranty that the goods are of good quality and suitable for the purpose for which they are intended.
”Section 132(2) stipulates that consumers may return goods which do not meet the required standards to the undertaking that supplied the goods within three months after the delivery of the goods to the consumer.
”The undertaking shall either repair or replace the failed, unsafe or defective goods or refund to the consumer the price paid for the goods.
”Consumers have multiple avenues for redress in such situations”, he said.
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