HUL prioritizes the emphasis on family-sized packaging.

Hindustan Unilever (HUL), India's leading consumer goods company, is strategically introducing larger or family-sized packs to selected general trade outlets in the top 100 towns. The goal is to boost volume growth, according to distributors from Maharashtra, Gujarat, and Madhya Pradesh. This initiative is part of HUL's effort to align large general trade stores (measuring 1,000-1,200 sq ft and above) with modern trade practices, offering them the larger packs typically found in modern trade outlets. The expansion covers various product categories, such as soaps, detergents, foods, beverages, and personal care items, particularly targeting urban areas referred to as 'Bharat ke Shehar' by HUL.

Distributors have noted that this move enables HUL to provide significant price discounts (up to Rs 100-150 on certain packs), making the products appealing to consumers and potentially encouraging them to upgrade their purchases. The company also anticipates an increase in sales volumes with fewer store visits, capitalizing on stable urban demand, as rural demand remains comparatively weak.

Industry experts, like G Chokkalingam from Equinomics Research & Advisory, observe that for FMCG companies, the challenge lies in boosting volume growth, especially considering the current weakness in rural demand. The emphasis on large packs is primarily directed towards urban areas, where purchasing power is relatively stronger.

While HUL refrained from commenting, distributors view this initiative positively, interpreting it as an effort to address the discontent among general traders who often feel neglected compared to modern trade and e-commerce. Typically, general trade contributes to 80% of an FMCG company’s business, with the remaining 20% attributed to modern trade and e-commerce.

The introduction of HUL's large packs, including items like 6-kg Surf Excel detergents, 3-litre Surf Excel matic liquids, and bundled soap offers, into larger general trade outlets is seen as a positive move. These outlets, resembling standalone shops, are now stocked with family-sized packs, signaling to consumers that general trade is a viable option for their family needs.