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Shrink-flation is driven by short term quarter earnings thinking. Reducing the amount of your product (and therefore it's overall quality compared to competitor
by SQueeeeeL 4y ago
Shrink-flation is driven by short term quarter earnings thinking. Reducing the amount of your product (and therefore it's overall quality compared to competitors), is an act of cannibalization of a brand.
They may increase profits for a short time, but as consumers realize what's happened, ultimately they see the brand as not having standards and lead to it becoming a commodity. A small group of long term invested owners would never do such a thing, because that would be 'killing the goose who laid the golden egg', but modern shareholding has no loyalty to quality.