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India’s recent shift to a streamlined GST system (GST 2.0) is reshaping the way FMCG (Fast-Moving Consumer Goods) companies handle pricing, especially for low-value impulse packs like ₹5, ₹10, and ₹20 products. These packs, widely purchased by customers for daily needs, are now facing new challenges under the standardized tax regime.

❓ Why Are FMCG Brands Resisting Lowering MRP?

As FMCG brands produce goods that consumers are used to buying at familiar price points (₹5, ₹10, ₹20), it is not easy to suddenly shift to pricing like ₹17.8 or ₹18 due to the new GST framework.
Rather than changing the price drastically, companies plan to increase the quantity of impulse packs so that customers feel they are still getting value for money.

👥 What About Consumers?

The consumer’s response depends on the elasticity of demand.

For inelastic products (where demand stays stable despite price changes), customers are likely to continue purchasing.

For elastic products (where small price changes affect buying behavior), companies need to carefully balance price and quantity.


The idea is to maintain psychological price points that customers are familiar with, while adapting to tax norms.

🏛️ Government’s Role: GST Regime Comparison

🔸 Earlier GST Regime:
The tax slabs were inconsistent. For example:

A salted popcorn pack and a caramelized popcorn pack were taxed differently due to their components.
This created confusion for companies and consumers.


🔸 New GST Norm (GST 2.0):
Now, tax slabs are more uniform and simplified.
✅ Easier tax compliance
✅ Market transparency
✅ Predictable tax framework
The challenge remains for companies to adapt their pricing and packaging strategies to this new reality.

💡 How FMCG Companies Are Adapting

Apart from increasing quantity, here are key strategies being used:

1. 🎁 Value Packs
Offering bundles (e.g., two packs at ₹18 instead of ₹10 each) gives consumers a sense of added value, making them less sensitive to minor price increases.


2. 🌟 Brand Loyalty Programs
Rewarding repeat purchases with points or discounts helps sustain consumer attachment to the brand despite changes in pricing.


3. 📢 Promotional Campaigns
Time-limited offers, cashback schemes, or digital coupons help keep customers engaged.
Example: “Buy 3 packs and get ₹5 cashback” promotes continued purchases and combats initial resistance.



✅ Conclusion: My Take

The GST shift brings a much-needed structured approach to taxation in FMCG retail.
✔️ It simplifies compliance and enhances market transparency, making things easier for businesses in the long term.
✔️ Although there will be initial hurdles in adjusting prices and consumer expectations, once the system stabilizes, both companies and customers will benefit from the predictability and simplicity.

👉 Overall, GST 2.0 marks a positive move toward a healthier FMCG ecosystem in India, provided businesses adopt smart strategies like value packs, loyalty programs, and promotions to stay competitive.