2009-06-08

Hidden inflation with new packaging

One must be very careful when one sees a product with a new packaging in supermarkets. I have noticed that several of the household products that I buy are now coming in new packages/bottles/formats etc.

The question one must ask is: Why would any company, in the midst of a very severe recession — actually, it's not officially called a Depression yet — invest in packaging design, and then would also change its manufacturing process, references, etc. ? Is the corporation investing (tapping into their savings) in order to gain market share? Is it to compete with a newer better more catchy packaging for washing machine or dishwasher liquids?

The answer is NO 90% of the time. Most of the time, the only reason to change a packaging is simply to reduce the content of it but not the price. The sad reality is that every time a saw a new packaging, the content was about 10% less than the previous packaging while the price remained the same. Typically, a 500ml product would become 450ml or a 500g would become 450g. This is nothing but 10% of hidden inflation.

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