Inflation is an evergreen problem and as the prices are rising, citizens are facing difficulties in living even their budgeted lifestyles. Kimberly Clark recently raised prices on most of the frequently used products and these products are used by many North American people in their daily lifestyle. These products are used in huge magnitude and these products are Scott toilet paper and Huggies diaper. Since the mothers are highly concerned about their child so they tend to use these products regularly. Higher commodities costs are causing problems especially to the consumer than industries. Higher commodity cost is also hurting companies and their profits, there are chances that they might lose out on sales as well from cash-strapped consumers who are currently suffering from the impact of coronavirus pandemic. Due to this pandemic, their operations also slow down which restricts them to produce more and provide user-friendly products to society. The prices of other products have also risen such as the company, named; ‘JM Smucker’ also raised the price for its premium peanut butter, and ‘the general mill’ is planning to hike the prices.
The price of the product should be cost-friendly and there is always a certain price that the consumers can afford due to their purchasing power. On the other hand, when a company hikes their prices, they face a lot of pressure as the cash strapped consumer who is suffering from this pandemic could choose for cheaper private label products because that will be more beneficial for them and they would not spend their valuable money on these high priced daily use products.
Consumer products companies are also starting to lap their surging sales sparked by last year’s stockpiling, and many analysts are predicting lower sales when more consumers will get vaccinated and return to pre-pandemic habits. Prices on most of Kimberly-Clark’s North American products will rise by the mid-to-high single digits, and consumers can expect to see most of the higher price stickers by late June. Impacted business segments include baby and child care, adult care, and Scott toilet paper. If rival Procter & Gamble follows its lead, consumers could also see higher prices on Pampers diapers and Charmin toilet paper.
