How less is more for skincare brands in India

Small size packs are nothing new in India; in fact we’ve seen a number of food companies use this strategy when marketing their products. According to estimates by the Federation of Indian Chambers of Commerce and Industry (FICCI), as published in Business Standard, up to 40% of total FMCG market sales in India are driven by low-unit packs. Many categories which were earlier restricted to big pack sizes only, are now also considering venturing into sachet formats to garner untapped market opportunity.

40% of total FMCG market sales in India are driven by low-unit packs

Facewash is one such category which has so far only been available in larger tubes or bottles. Two brands we have seen move into smaller pack variants in this category, are Zydus Wellness and Sons India Private Limited. Ahmedabad-based Zydus Wellness, expanded into the sachet market in September 2014, launching Everyuth facewash in a sachet, retailing at INR 1. This is a packaging variant of the company’s Everyuth Naturals brand of face wash, which comes in a tube and is priced at INR 35.

Similarly, in February 2014 SFP Sons India Private Limited, a leading manufacturer and exporter of perfumes, launched an easy to use perfume spray named ‘JASS’ in 2ml sachets priced at INR20. The product offers 75 sprays. Indian News and Times described the launch as ‘Luxury now in Sachets’.

Such small pack sizes with entry-level pricing offer the advantage of opening up existing categories to a wider audience, particularly low-income consumers who might otherwise find larger packs too expensive. They also allow for more frequent usage, as many Indian consumers do their household shopping on a daily basis, rather than buying in bulk. In some cases, companies are using smaller sizes as a strategy to keep from increasing the prices of their products.