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From rice to fresh meat and cleaning products: How to stretch your dollar with housebrand items

Offering more than 2,000 products, including vegetables and gourmet sausages, FairPrice Group’s in-house range is up to 15 per cent cheaper than branded alternatives

Mr Vipul Chawla, FairPrice Group Group CEO
Mr Ng Chee Meng, NTUC secretary-general (left) and Mr Vipul Chawla, FairPrice Group Group CEO (right), checking out FairPrice’s homebrand Golden Royal Dragon Thai White Fragrance Rice. PHOTO: ST FILE

The year was 1985 and Singapore was in a recession with rising retrenchment rates and a sharp drop in disposable income.

Singaporeans were looking for ways to cut spending and help came in the form of housebrand products from FairPrice Group (then NTUC FairPrice). It was the first retailer in the nation to launch a housebrand – after all, the cooperative had always been dedicated to moderating the cost of living for all in Singapore.

Naturally, there were naysayers: Premium supermarket Jasons’ then-marketing director was quoted telling the media that “people are creatures of habit”, according to The Price of Being Fair, a book published recently by FairPrice Group to celebrate its 50th anniversary.

“If they have faith in an international brand, they would be reluctant to change to something unfamiliar,” he said.

FairPrice’s then-general manager Mr Lim Ho Seng countered: “Consumers are smart people. They want value for money and if they find that a product is good, they will buy it, regardless of the name on the wrapper.”

FairPrice homebrand household items
FairPrice offers more than 2,000 homebrand household items sourced from more than 55 countries, including Thailand, Malaysia, Japan and Australia. PHOTO: FAIRPRICE GROUP

He was right. A year after its launch, the group’s housebrand range grew to make up 10 per cent of the total product line in stores. The reason was simple: Singaporeans were attracted to the competitive prices and good quality.

No brand, no problem

Thirty-eight years later, FairPrice Group and its consumers are still advocating the same value-for-money philosophy.

Today, one in three shopping baskets at FairPrice retail stores and seven in 10 online baskets contain a housebrand product. FairPrice Own Brands  also clinched the Brand Transformation of the Year award at Retail Asia Award 2022.

The supermarket chain offers more than 2,000 household homebrand products across 54 categories. These are sourced from more than 55 countries, including Thailand, Malaysia, Japan, Australia, Italy, Canada and Singapore.

It includes everything from fresh produce under the Pasar brand, health and wellness food under Origins to – one of its latest launches – gourmet sausages under Delicato, which won Product Launch of the Year at the FMCG Asia Awards 2022.

More variety to meet consumer needs

FairPrice homebrand products
FairPrice sources its homebrand products from the same manufacturers who make branded items, but is able to cut down on cost due to greater control over quality and marketing. PHOTO: ST FILE

In 2019, FairPrice Group set up a dedicated business unit, the Own Brands & Food Solutions (OBFS) division, to grow and improve on its housebrand offerings while strengthening its position as an affordable and accessible food provider.

According to Ms Grace Chua, chief executive officer of OBFS, the division is currently one of the fastest-moving consumer goods companies in Singapore, making close to $500 million in revenue in 2022. OBFS is expected to double its revenue to $1 billion in 2030.

What you may not know is that FairPrice housebrand products are also certified by internationally recognised food safety and quality standards such as HACCP and ISO 22000. Housebrand products are priced 10 to 15 per cent lower than comparable national branded products, giving budget-conscious consumers a low-cost yet high-quality alternative.

As consumption patterns change in Singapore with palates becoming more discerning, Ms Chua says FairPrice has seen a growth in the popularity of health and wellness products, specialty categories such as olive oils, and indulgent categories including snacks, chocolate and wine. It also has Just Wines for ready-to-drink beverages, Harvest Fields for ice cream, and Golden Chef that offers items with Asian origins such as curry sauces and dumplings.

In January 2022, OBFS also acquired OJJ Foods, Singapore’s largest pork processor, to give itself a foothold over the value chain for pork products, says Ms Chua.

With core inflation forecast at 2.5 per cent to 3 per cent in Singapore this year, Mr Vipul Chawla, group CEO of FairPrice Group, recently told The Straits Times: “OBFS is central to our social mission of helping customers moderate their costs of living.”

To find more housebrand products visit FairPrice’s online store.

FairPrice logo

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