The problem with the ‘sachet revolution’
Why the sachet was needed in the first place and why FMCG companies continue to depend on them even after close to four decades.
Why read this story?
Editor's note: A small shampoo sachet of ₹1. A little soap of ₹2. A finger-sized coconut oil bottle of ₹2. Most Indians may have used these at least once in their lives. As an economist, I have always wondered why we see them in such large volumes in most Indian shops, especially in rural areas. In the developed world, rural consumers generally buy larger bottles of shampoo or oil or body wash, or larger soaps. When I began to teach a course on the Indian economy more than a decade back, I used to put this up as a question to my students—much to their amusement, and my fun. Indian textbooks on marketing management or rural marketing are instructive reading here. They will tell you that the “sachet revolution” was India’s “disruptor innovation” in the 1980s, and its pioneer was one Chinni Krishnan from Cuddalore, Tamil Nadu. Those were the days when a shopkeeper in the village would cut a Lifebuoy soap into six pieces and sell them at a price little more than one-sixth that of the full soap. Similar was …
More in Chaos
You may also like
Young consumer startups are forcing a reinvention of India’s FMCG giants
The country’s changing market dynamics are pushing consumer goods giants to acquire young startups. We look at why—and whether—it works for both sides.
What China’s recent Middle East tour says about their ties
China’s expanding influence in the GCC region comes with its own set of opportunities—and constraints shaped by America’s influence in the Gulf.
Annus horribilis: 2025 was the year India learned it wasn't indispensable
It is the logical consequence of foreign policy built on a decade of illusion rather than the realities of power. The question is whether anyone in the government has the courage to admit it.