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8 October 2019

NTUC FairPrice refreshes its housebrand and targets to launch 300 new products to cater to evolving consumer preferences

  • Study reveals 3 in 4 grocery shoppers purchase housebrand products regardless of household income level
  • First phase of refreshed FairPrice housebrand range to be launched from today onwards across all FairPrice stores

 

SINGAPORE, 8 October 2019 – NTUC FairPrice (FairPrice), today announced its plan to refresh its housebrand range of products – targeting to introduce 300 new housebrand products in the next 12 months – to provide greater quality, value and a wider range to cater to the evolving needs of consumers. The first phase of the refreshed FairPrice housebrand range will be launched today across all FairPrice stores.

Ms Grace Chua, Managing Director and Deputy Head of Products, NTUC FairPrice, said “FairPrice housebrand products were introduced 34 years ago to help families stretch their dollar without compromising on quality. It also helped keep prices of daily essentials in check. To continue to fulfil our social mission, our housebrand products must remain relevant to the evolving needs of consumers. Our research shows that consumers want access to affordable products but they also want more than just the basics. They also want choice, quality, healthier products and convenience. We see this as an opportunity to re-imagine our housebrands.”

In response to new consumer insights, FairPrice is working to deliver a wider range of good quality products while keeping price more affordable than national branded options. The refresh of FairPrice’s extensive range of over 2,000 housebrand products involves an end-to-end process including consumer research, partnering with suppliers and manufacturers, product testing, branding and packaging design.

 

Consumers purchasing more housebrand products

FairPrice invested in in-depth consumer research over the past year. Studies reveal that consumers are now more open to purchasing housebrands and recognise the good value that housebrand products provide.  Consumers increasingly feel that the quality of housebrands are comparable with national branded products.

One of the studies, comprising over 400 participants, revealed that three in four shoppers are open to purchasing housebrand products, ranging from staples and fresh food to non-food items.

Consumers who purchased housebrands are also not limited to any particular consumer profile, where shoppers from low to high income households would consume housebrand products.

A separate qualitative study – involving home visits, shop-along sessions and in-depth interviews – among low and medium income households also revealed that price is not the only determining factor in making purchasing decisions. Lower-income shoppers[1] are willing to spend more for quality and health - consumers are growing to be more discerning in quality of products and invest more on themselves.

Better value with quality housebrand products

FairPrice housebrand products are sourced from over 55 countries around the world, including Singapore, Italy, Australia, Canada and Japan, and are certified by internationally recognised food safety and quality standards such as HACCP and ISO 22000. To provide better value, housebrand products are priced 10 to 20 percent lower than comparable national branded products.

FairPrice also uses data analytics to understand the shopping basket of its customers. This enables the development of a housebrand product portfolio that addresses what consumers need and areas where they are under served.

Apart from this, FairPrice has also developed a product testing protocol, comprising specially trained assessors. Some 200 products have since been tested to assess if they meet consumers’ preferences or not. By the second quarter of next year, FairPrice will pull together a consumer advisory panel to co-create and develop new housebrand products.

Earlier in March this year, FairPrice also initiated a price freeze on a basket of 100 FairPrice housebrand products until 30 June 2020 to protect Singaporeans from any price fluctuations, regardless of changes in supply and external factors. The basket of items was specially selected based on popular daily essentials purchased by customers such as rice, oil, beverages, toiletries and household cleaners.

Consumer engagement

Based on the insights gathered from the consumer sentiment studies, a redesigned look for FairPrice housebrand products was launched today.  It is designed to better reflect the quality attributes of its products, country of origin and nutritional value, to help consumers make better informed purchase decisions. The first 30 popular FairPrice housebrand products – such as Thai Hom Mali rice, olive oil, green tea, facial tissue and potato chips – with the redesigned packaging will be available at all FairPrice stores from today onwards.

To complement the launch of the new packaging, consumer engagement activities such as product sampling will be held to so that consumers can experience the quality of FairPrice housebrand products and the good value that they provide. 

In catering to varying needs of consumers across different life-stages and profiles, FairPrice offers a differentiated range of housebrands including FairPrice, Pasar, Harvest Fields, Golden Chef and Life.

[END]

 

[1] Household income <S$3,600 monthly

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