Archive · 25 Jun 2025
FMCG Discounting Backfires: Brand Perception Suffers Amid Price Cuts
Imagine you're buying your favorite snacks.
Now, imagine those snacks are always on sale, but you notice the price going up before the discount.
A report says this is what's happening with some products.
Companies that sell things like food and cleaning supplies, known as FMCG companies, are raising prices, then offering discounts to attract buyers.
But, people are starting to think the snacks must be low quality if they are always on sale.
The report suggests that buyers prefer products that are fairly priced, not just discounted.
Moreover, when people buy these products through delivery apps, they can sell more of their own products compared to well-known brands.
Aggressive discounting by FMCG firms is negatively affecting brand perception.
Consumers are associating frequent discounts with lower product quality.
Unlike general merchandise, FMCG buyers prefer appropriately priced, value-driven products.
Persistent price hikes and discounts are creating hygiene issues for brands.
Quick commerce drives better sales in private labels for FMCG products.
- Who
- The report comes from financial management firm Emkay Global.
- What
- Aggressive discounting in the FMCG sector is damaging brand perception.
- When
- The report was released on June 25 (implied).
- Where
- In India, specifically mentioning Hyderabad.
- Why
- Consumers are increasingly associating heavy price cuts with compromised product quality.
FMCG Companies
Consumers
Impact of Discounts
FMCG Companies
Using discounts to boost retail margins.
Consumers
Consumers see discounts as an indicator of low product quality.
- Report Source
- Emkay Global
- FMCG Definition
- Fast-Moving Consumer Goods
- FMCG Characteristics
- Sold quickly, relatively low prices, short consumption period
- Impacted Channels
- Modern and general trade channels
- Sales Driver
- Quick commerce for private labels