Sunday, January 07, 2007

Mini- products in India

Hi Guys,

One of the things I have noticed on my trip (I am in India) is that a lot of products are sold in mini-formats. For example Ariel washing powder is sold in sachets. Initially I was confused by this. Surely in a country where poverty is so prevalent, people would want to buy in bulk?

I asked a shop keeper what people usually use to wash their clothes. Most people are so poor, they just use water (I saw some people washing their clothes using river water). They don't have machines, so they wash their clothes by hitting them against a hard surface to get the dirt out.

Ah ha! So the clever thing about putting "luxury goods" like Ariel washing powder into mini-formats is to get people to potentially try them out? Maybe in a good month where they may have a few rupees to spare?

Just an observation....

Thanks for the interesting posts. LOVED the innovation tube map.

3 Comments:

Anonymous Anonymous said...

Definitely an interesting observation. Though, I'm not sure the small packets are designed to inspire trial.

(In their shoes) Perhaps I make so little each month, buying a large container of detergent would require me to save for months. With my income, saving is near impossible, so if Ariel only produces big boxes, I'll never be a customer. On the other hand, if I can buy detergent sachets as needed, with small amounts of money, Ariel opens up a new market. So, its not about the "value" of the purchase (the price per ounce), it's about making it something I can afford in shorter time cycles.

Do wealthier locales also tend to purchase detergent in small sachets? How do I buy if I have a washing machine vs. hand-wash? Or are the small sachets "special"? Is there an emotional component to laundry? Do others have experience with this market? Other insights on this packaging / selling approach?

1/07/2007 10:04 AM  
Blogger Adam French said...

Of course one of the downsides of this is as companies come under more scrutiny for ethics and sustainability is that this is incredibly wasteful. Especially as often people wash in rivers and as such the riverbanks end up littered with used single dose packets.

This poses a problem for the big companies, how do we make our porduct accessible while at the same time not causing a massive litter problem? Surely an area for packaging innovation.....

1/07/2007 11:10 AM  
Blogger ROInnovation said...

Hi there

I know from working in Egypt that the small sachets are to do with the fact that many people get paid daily for their work, or weekly, and in very small amounts. Just as Scott said, they are not able to sell any significant amount because they just cannot afford to save up for something in big quantities. Because women are the housekeepers, they tend to go out each day and buy the food necessary for that day's meals, or the products for that day's use. The richer you are, the more you can buy in advance.
Pam

1/07/2007 11:35 AM  

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