'Great Societal Transformation' or 'Great Savings Transactions'?

New Delhi: From September 22, as per the delightful state policy, the wallets of Indian customers are destined to get heavier. The GST cuts are deeply unusual for our historically hapless citizenry, resigned to strictly upward movement of price tags. Quite predictably, the brands at large are accelerating their gains through diverse manoeuvres. 

P&G is flaunting its cross-category bestsellers, pleasingly informing customers that their favourite brands are now cheaper. Nestle is playing a thoughtful double role—welcoming the easier access to child nutrition for its eponymous range while oozing more transactional vibes for its chocolate repertoire. Dabur is pursuing its 'India' card diligently, the Honourable Prime Minister's visual endorsement adding valuable weightage to the Swadeshi clarion call. 

Mondelez is resorting to brand thematic synergy while integrating its tagline lineage with the GST gift. Ferrero is following suit with its own array of goodies, in Pied Piper mode. Amul chooses to call this transformation the 'Greatest Relief,' with a full-page demonstration of its repertoire, embellished with suitable nation-building niceties. Even the makers of Mamypoko pants and MTR treats can scarcely conceal their glee, as the private handshake acquires a fresh new meaning.

Maruti Suzuki, representing the sector with possibly the most to offer, chooses a matter-of-fact price deviation chart, topped with their own brand-level festive discounting. Interestingly, Blinkit and Instamart, the OGs of new-age shopping, are flaunting their autonomous offers, blissfully underplaying the GST impact. While many an ambitious enterprise, seeking favours from influential dispositions, are openly acknowledging the Prime Ministerial role in this game-changing gambit. 

In sum, businesses are choosing from a wide range of gratitude scenarios, in wholesome full or happy part. Virtue Signalling is one such route, claiming magnanimous credit for performing what is essentially a legal obligation. Nation-building is yet another alibi, the Prime Minister co-opted as an 'invitee' endorser, stretching the liberty of publicity legislation. Vivid Demonstration is a common thread; the before-and-after price points are communicated with persuasive simplicity along with visible brand family jamborees.

Category Expansion is yet another compelling adhesive, making the unaffordable suddenly within landing distance and applicable for Insurance and Healthcare, amongst myriad others.  Provocative Pull is perhaps the most obvious yet underdone, with exponential demand generation being the festive ask. Finally, there is the genre of Corporate Communique, whether in paid columns or PR newsprint, declaring the stoic implementation within the designated time frame. 

All of the above are productive approaches, from the eyes of legality and growth, with the added agenda of creating 'transactional' customer awareness. So that the cast and crew of the General Trade ensemble cannot take unfair advantage, especially as the packaging labels have not been refreshed. Although in an end-user pricing regime where the MRP is discounted in the last mile, its holistic implementation is not yet transparent.

A section of sceptics is suggesting that retailers will simply charge the MRP at face value, retaining in full the partially passed-on sales margins. This drama will surely unfold shortly, both offline and online. Customers are clearly unlikely to be the losers, through direct price benefits or the upward reversal of shrinkflation. New entrants may be welcomed in many categories, fuelling an upgrading pattern as well. 

There are other interesting possibilities. Such intense communication across categories may well build exceptional customer awareness about the multi-layered margins and tax regime, leading to higher transparency and lesser subjectivity, especially in General Trade. Entrepreneurship may be accelerated, innovations amplified, and overall levels of creativity enhanced—as customer bases grow. Greater penetration of Insurance and Healthcare can lead to happier communities. Savings potential is clearly a frontrunner beneficiary, although constantly in combat with higher indulgence spending. 

Perhaps brands can exploit a 'GST Bonus' segment, essentially retaining current familiar price points for ingredient enhancements. Whether it's superior cocoa in chocolates, a more potent mix for child nutrition, or value-added safety features in an SUV. Q Com and E Com aggregators can suggest AI-optimised shopping baskets for families, offering tactical upgrades in monthly shopping lists within current budgets. Service-level value additions can happen—health checkups as an addendum to senior citizen or child nutrition ensembles. 

Prima facie, the GST cuts will surely yield transactional benefits, further persuaded by the messaging undertaken by brands. It is also feasible to imagine that these can become the foundation for meaningful societal progression, to curate a win-win economic ecosystem. It's clearly an early Diwali for Indian customers, and the fireworks are in no mood to abate.