The noise around the "nine" eggs forced the Russians to learn a new word for them - "shrinkflation". Word, can, and new, yes, the Russians have been familiar with this phenomenon for a long time, nearly 10 years since the last major economic crisis. "Russian Planet" understood, why packages are shrinking (and not only in Russia), and when it comes to an end.
We are always looking, which is cheaper, And manufacturers are well aware of this.. Endless economic crises, be it local, or globally, led to, that over the past few years, the number of products in the package has been declining around the world. This is called "shrinkflation", or "squeeze": reduction of goods in the package without changing the price for it.
Milk, drinks, chips, ice cream, boxes of pasta - packages are losing weight before our eyes. The UK has calculated, that 2012 years over 2500 goods, which can be found on the shelves of British supermarkets, lost weight or volume.
AT 2016 the whole of England was vigorously discussing the famous Toblerone chocolate bars, about the same, like Russians in January 2019 - a pack of nine eggs. The weight of the standard chocolate bar has been reduced from 400 g to 360, small chocolates lost weight with 170 g to 150, while the size of the package remained the same. But the bars themselves have changed: conservative Britons were upset, that the signature triangular design of the bar has changed, and the distance between the teeth has increased. To calm angry customers, the company had to return the classic look to the bars, but the length of the bar is still reduced.
In the USA for the last 5 years before 20% all goods subjected to shrinkflation. In South Africa, cola bottles have "lost weight" since 500 ml to 440. Mars bars, Cadbury's and Kit Kat chocolates, Tesco tomato sauce - only the most striking examples of products, who have lost weight.
There are also plenty of examples in Russia: go to any store, and you can hardly find a carton of milk, which will say "1 liter". Sugar is increasingly packaged in 900 g, not by kilogram.. In the usual square pack of cottage cheese, usually, no longer 200 g, a 190 or 180 g, and even alcohol has not escaped shrinkflation. In beer cans, in which, we remember, 0,5 l, maybe 0,45 l. Unless vodka producers remain faithful to traditions, but for how long?
Not only food products are decreasing, but other categories, e.g. washing powder, cleaning gels and even toilet paper. Interestingly, manufacturers used to explain the change in the quantity of goods in the package by, that the product has become better. for example, toilet paper is softer, because of this, added in volume, that's why the roll has become a couple of meters less. Or coffee - it was ground too well, the product began to take up more space, and the same weight no longer fits in standard packaging.
Why "compress" packaging?
Some experts believe, that shrinkflation is nothing else, how to mislead the consumer. Although it's not really true: the manufacturer honestly indicates all changes on the packaging.
«Shrinkflation - marketing trick, which allows consumers to adapt to new prices in a softer form, and manufacturers – not to lose the buyer and not incur losses. There are different opinions on this, but it is important to understand the root causes of shrinkflation – impoverished population and trying to adapt to reduced demand (and consumption) manufacturers», – Marina Petrova told the Russian Planet, Chairman of the MCCI Committee for the Development of Entrepreneurship in the Agro-Industrial Complex, CEO of Petrova 5 Consulting».
In its opinion, the shrinkflation technique has been used for a long time and is often used during periods of crisis, when the cost of production rises, and the consumer is not ready to immediately pay an adequate price. Therefore, the manufacturer, trying to keep the price on the shelf, reduces the base packaging by 10, 20 grams is less noticeable and critical for the consumer, than price increase.
It is rare that a particular product is made from raw materials, completely grown within the same country or even region. Confectionery factories around the world are heavily dependent on cocoa prices, which have grown significantly over the past few years.. Sugar, spice – rising prices for these ingredients are forcing food manufacturers to look for ways to, how not to lose your customer and not reduce revenue at the same time.
You can just raise the price of the product. And many manufacturers have done just that.. But, we remember, the determining factor for the buyer is the price. What else can be done? Change product formula, find cheaper analogues of raw materials, or replace the natural ingredient with a synthetic one. This is also the way out., but consumers will quickly become disillusioned and, in its turn, will find, how to replace a chocolate bar, who suddenly changed his taste.
According to Marina Petrova, shrinkflation is a forced measure, triggered by the crisis. "If we talk about Russia, then the country is already more 10 years is in a situation of protracted economic crisis. Attention, which was attracted by the history of 9 eggs in a package, Firstly, reflects the complex dissatisfaction of buyers with declining income. In such circumstances, consumers are more carefully analyzing price increases per kg, a piece or ten. Generally, important to understand, that everyone today is trying to survive - and consumers, and manufacturers. Therefore, I would not speak harshly about the manufacturers, who are trying to maintain consumer loyalty by reducing weight, while maintaining the quality of the product", – says expert.
Artem Marchuk, partner of the logistics company "Point-Point", in its turn, sees nothing good in shrinkflation.
“This technique undermines confidence - the Toblerone scandal and the feedback from fans are very indicative. And the reason for this is simple.: required rate of return. maybe, inflation and stimulates the desire to leave the previous price level without loss of profitability, mistakenly believing, that it will keep loyalty.
So a little trick gradually became a trend, and shrinkflation was finally noticed, although manufacturers have sinned like this before - just not on such a scale.
Everything has a limit
We are partly to blame for this.. The behavioral model of the consumer is approximately the same as in the USA, what is in Russia.
“There is only one limit to shrinkflation – when the consumer notices the difference”, – explains Petrova. "Weight loss for 8-10%, often, goes unnoticed, and the weight change 10% and will no longer be overlooked, so you need to transfer the product to another portion category. for example, the volume of a package of drinking milk used to be 1 liter and its reduction to 0.87 liters irritates many, therefore, today the question arises of a multiple change in the portion and the creation of a new SKU".
The consumer even noticed the difference and began to perceive the reduction in the amount of goods in the package as unfair.. And went straight to the courts.
AT 2015 year against the American manufacturer of spices McCormick was filed a class action lawsuit. The company was accused of, that she reduced the amount of black pepper in the package by 25%, though, that the packaging remains the same. Despite, that the new weight has been indicated, the plaintiffs argued, that the packaging hasn't changed in decades, and therefore, consumers expected a certain amount of pepper in each.
Apparently, in the near future, manufacturers will have to reconsider their strategy. They will have to take into account, how the buyer will perceive the changes, and how much consumption will decrease as a result of shrinkflation - after all, people will not want to receive less and less goods for the same money. Fairness matters to the consumer, and in the long run, he may completely abandon this product, if you feel cheated.
“An attempt to gain a price advantage when comparing homogeneous products with competitors, who do not practice this (type of egg in a similar package 10 pieces), sure, will not bring success, when the consumer understands, that he was deceived", – says Artem Marchuk. In his opinion, the same applies to bulk or liquid goods, which are packaged in containers 900 g.
"Hard to imagine, that "profit" can find a positive response. But there are other kinds of incentives to change packaging., which often leads to economic benefit to the buyer. For example, stimulate the volume of consumption, or vice versa, offer a more economical option”. It would be more honest, considers Marchuk, indicate the price for 100 g, for example, simplifying the choice for the end user, than to create an illusion and deceive expectations.
Is it possible to fight shrinkflation?, if suing manufacturers is too troublesome? You can just stop buying your favorite brand of chocolate or chips, if the quantity of goods in the package no longer satisfies you, and switch to another brand. You can buy goods after the holidays, when stores lower prices on hot items. Experts often advise never to go to the supermarket on an empty stomach.: in the store we think with the stomach, not your head.
Good advice - don't rush, carefully study the inscriptions on the packages and have time to spare, to count, which product will be the most profitable in the end. Finally, in some stores, at the very bottom of the price tag, they indicate the cost of goods per gram / kilogram or per unit of goods, this will help you navigate. by the way, a similar technique as a method of combating shrinkflation in some countries they want to legally make it mandatory.
Whatever it was, shrinkflation is just a consequence. This means, it is useless to fight it - you need to think, how to get out of the crisis. And do so, so that the income of the population grows in practice, and not in the reports of officials.
Maria Kuzmina
