Consumers diverts their spending to mobile phones

Cell phones have affected the bottom line of one consumers goods company in India, who blames the falling profits on price cuts and mobile users diverting their spending to mobile phones.

India's biggest consumer goods maker, Hindustan Lever Ltd., posted a fourth consecutive fall in quarterly profit on Friday, as price cuts failed to significantly boost sales of its soaps and detergents, reports Money Control.

"Lever, whose products include Lux soap, Sunsilk shampoo, Wheel detergent, Pepsodent toothpaste and Lipton tea, has been dogged by sluggish sales as consumers shifted to cheaper brands as they diverted spending to mobile phones and travel.

emily | 11:16 AM | News, Buzz |
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