Brands narrow assortments
Companies are trimming model counts and focusing on fewer, profitable items as input costs rise, with smartphone and TV makers and FMCG firms simplifying ranges and packaging to protect margins (economictimes.indiatimes.com). The behaviour at scale suggests a marketplace strategy that emphasises reliable, high-turn items over breadth to reduce fulfilment and support complexity (economictimes.indiatimes.com).
Indian brands are cutting product sprawl and betting on fewer, faster-selling items as costs rise across phones, televisions and packaged goods. (economictimes.indiatimes.com) The shift is showing up as fewer phone launches, slimmer television lineups and smaller fast-moving consumer goods packs built around ₹5 and ₹10 price points. Economic Times reported the move has spread across smartphone, television and consumer-goods companies as input costs climb. (economictimes.indiatimes.com) India’s smartphone market gives companies a reason to simplify. International Data Corporation said shipments fell 5.5% year on year to 32 million units in the first quarter of 2025, while Omdia said full-year 2025 shipments slipped 1% to 154.2 million units as costs rose and affordability weakened. (idc.com) (omdia.tech.informa.com) Omdia said brands with “disciplined portfolio management, strong offline execution and tighter inventory control” outperformed volume-led rivals in late 2025. International Data Corporation said the first two months of 2025 saw fewer launches as brands cleared older inventory with discounts and retail support. (omdia.tech.informa.com) (idc.com) In packaged goods, the same logic shows up at the shelf. Companies are keeping the ₹5 and ₹10 sticker price in place, then trimming weight, pack sizes or the number of variants to protect margins without forcing a visible jump in the amount a shopper pays. (thehindubusinessline.com) The Hindu BusinessLine reported on April 10 that Parle Products cut grammage in some Parle-G packs, Varun Beverages rolled out ultra-small ₹10 packs of Pepsi and Slice, and Dabur introduced smaller packs in honey, juices and hair care. Nuvama Institutional Equities told the paper the commodity basket could cut gross margins by 100 to 250 basis points if companies do not respond. (thehindubusinessline.com) Big consumer companies are also writing simplification into their formal strategy documents. Godrej Consumer Products’ 2024-25 annual report says its strategic focus included “radical simplification,” and a Motilal Oswal note summarizing that report said the company was reducing stock-keeping units, personnel and processes. (godrejcp.com) (images.moneycontrol.com) Hindustan Unilever’s 2024-25 annual report describes a “wide and resilient portfolio,” but the current squeeze is pushing the sector toward sharper bets inside that breadth. Marico’s 2024-25 report says “profitable value” remains a core goal, a phrase that fits the industry’s turn toward higher-margin products and fewer low-velocity tails. (hul.co.in) (marico.com) For retailers and marketplaces, fewer variants can mean fewer inventory mistakes, fewer support headaches and more shelf space for items that turn quickly. Economic Times said the strategy is centered on high-demand, high-margin products, not the broadest possible assortment. (economictimes.indiatimes.com) The result is a quieter kind of price increase. Instead of announcing a broad hike, brands are deciding which model, flavor, size or pack survives the next cost wave. (economictimes.indiatimes.com)
