Sectors initiative to overcome Inflation

Multiplexes

Fear: Movie watchers will cut back on their visits to the multiplexes

Industry strategy: Differential pricing, with attractive rates for morning shows; reward loyal customers with freebies; plead to government to bring down entertainment taxes

“We are cautious, but don’t forget that multiplex footfalls also depend on the (quality of) films being released” - Atul Goel, CEO, Fun Republic

Consumer durables

Fear: Increased prices due to high input costs could dampen consumer sentiment; higher interest rates will make consumer finance a less attractive option

Industry strategy: Don’t cut back on advertising in such times; shift focus to point of sale; focus on value engineering; and increase productivity

“In the short term consumers may defer purchases. But I don’t see them going to a cheaper brand because of inflation” - R. Zutshi, Deputy MD, Samsung India

Mobile services

Fear: People, particularly pre-paid subscribers, will talk less to spend less on their mobile bill as other 'essentials' grab a larger share of their wallet

Industry strategy: Focus on affordability and penetrate deeper up-country

“I believe Airtel offers consumers an aspirational product that is affordable” - Manoj Kohli, CEO Bharti Airtel

Cement

Fear: Government is keen to control prices at a time when raw material costs are spiralling

Industry strategy: Set up capacities closer to markets to save on transportation costs; make the clinker close to the limestone source and set up grinding units close to the market; set up captive power units to trim the electricity bill

“At the end of the day, you cut costs, absorb some losses and pass on some to the consumer—that is all that one can do” - D.D. Rathi, Director & CFO, Grasim Industries

Fast-moving consumer durables

Fear: Higher petroleum and commodity prices will necessitate price increases; consumers will gravitate towards cheaper substitutes

Industry strategy: Introduce value packs, offer discounts, upgrade product mix, use e-auctions for procurement and sourcing, squeeze out efficiencies from suppy chain

“At HUL we look at continued efficiencies and costsaving programmes… combined with judicious and sensible price increases” - D. Sundaram, Vice Chairman, Hindustan Unilever

Aviation

Fear: High fuel costs are making the low-cost model unviable

Industry strategy: Fly to a lesser number of airports; sign longterm maintenance contracts instead of short-term ones

“Passengers downgrading to rail travel is a reality.Trains run on fuel that is subsidised by over 47 per cent, whilst oil companies make money on the fuel we use” - Siddhanta Sharma Chairman, SpiceJet