The government is considering to bring Personal hygiene products under the price cap regulations. Several hygiene product manufacturers are claiming to stop their quality premium products if the government tolls on their prices.
This issue might stop the companies from innovating within the segments like hand washes, disinfectants, sanitary napkins and others. The government is finalising the list of categories that could come under price control.
Companies argue that premium items are costly to manufacture compared to usual products, but
these products are sold in the marginal prices. The price regulation is expected to impact the marketing strategies too.
As per a report by ET, A senior executive at multinational consumer good company said, “For advertising, new launches and even innovations, we need profitability. The margin for us and trade is not very high since they are nascent categories and we are focusing on increasing usage by squeezing margins already. Also, it is not clear whether all prices points will be covered.”
The executive further stated that, “If price regulation is notified as a blanket cap, RB could be one of the most impacted and lose its pricing power, since Dettol is the biggest brand in India.”
Months after RB’s launch of high priced chemical free soaps, hand washes and under the Dettol flagship brand, the proposal has been made. The final decision on posing the regulation will be made by Niti Aayog Panel after the list of products are confirmed.
The daily quoted an official saying, “The idea is to ensure all these essentials are available to the common people in affordable price. Some of these products will be available for free at primary and community health centers.”