Less chips in the bag that toilet paper is less durable or hotel room service is optional. These are examples of a trend that is being observed around the world called “reduction” (a play on words between reduction and inflation, “reduction” in Spanish) or when companies choose to reduce the number of their products instead of raising prices. That you do not lose users.
This economic strategy was already seen ten years ago, after the last economic recession, and now it is emerging again, because inflation is still the main concern of economists. Inflation in the United States is the highest in 40 years, driven by labor shortages, supply chain disruptions, rising demand after the pandemic, and the fact that Russia’s invasion of Ukraine is reducing food supplies. Energy supply, thus putting even more pressure on prices.
“Redflation” is a more covert technique. Generally, when a manufacturer is more costly to produce their product, they choose to raise prices, but this may force consumers to switch to competing or private label products.
Consumer Advocate Edgar Dvorsky has been studying product labels since 2006 and shares the changes he sees with his nonprofit, Consumer World. In a 2021 report, the expert points out that the bag of Doritos has moved from 276.4 grams to 262.2, which is less than 5 Nachos; Bounty toilet paper moved from 165 sheets to 147; The Crest 3D White Radiant Mint toothpaste tube increased from 116.2 grams to 107.7 grams, which means grinding one tooth.
Another way of reducing this is seen when a company changes the packaging of its product.. As was the case with PepsiCo’s isotonic drink Gatorade, which made its bottles simpler and easier to hold, but as a result of this change, it reduced the size of the bottles by 14%.
Some companies justify this reduction as an improvement for the customer or the environment. In England, for example, Cadbury said that its Wispa chocolate bars are now smaller, there is help in the fight against obesity, but the price remains the same.
You can find it not only on supermarket shelves but also in the service sector. Last July, the Hilton hotel chain announced that daily cleaning of occupied rooms in the United States would be done only at the request of the client (it is still free) and that the only automatic cleaning that will be done will be on the fifth day. Today.
At Walt Disney World, Florida Amusement Park, from Mickey Mouse creators, you can also see “reductions” from last summer, when the “Skip Line” pass increased from $ 15 free. In addition, Disney’s Magical Express service, which allowed Disney World Hotel guests to pick up and drop off at the Orlando International Airport (MCO) thanks to a theme park, was discontinued this year.
With this dynamic, it is not surprising that overall U.S. consumer satisfaction levels have fallen to their lowest level since 2005. “The decline began before the arrival of COVID-19, but the pandemic accelerated and deepened it,” he said. American Consumer Satisfaction Index Report.
Source: El Diario
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