New Delhi, June 25 -- Aggressive discounting in the FMCG sector is beginning to backfire, with consumers increasingly associating heavy price cuts with compromised product quality, according to a report by financial management firm Emkay Global.

The report points out that, unlike general merchandise, where high-priced items often rely on discounts to drive sales, FMCG buyers are showing a clear preference for appropriately priced, value-driven products.

The observation noted that persistent price hikes paired with frequent discounts are damaging brand perception and creating hygiene issues, even as companies attempt to boost retail margins.

FMCG, which stands for Fast-Moving Consumer Goods, is a term for products sold quickly and at re...