How FairPrice is deepening consumer relevance through Own Brands

Business Times

10 hours ago

Private labels and own brands now dominate supermarket shelves, appearing in almost every product category. As stubborn inflation and economic uncertainty persist, demand for such products continues to rise. House brand products are seen as cost-effective alternatives for daily essentials.
Recent reports found that nine in 10 Singapore shoppers bought house brands in 2024, and private label sales accounted for 8 per cent of global fast-moving consumer goods growth between 2024 and 2025.
As Singapore's largest retailer, we have seen this first-hand. Our Own Brands business, comprising FairPrice house brand products and private labels, was first established 40 years ago to provide Singaporeans with affordable daily essentials like rice and oil.
As stubborn inflation and economic uncertainty continue to persist, demand for our Own Brands products continues to rise – in 2024, nearly half of all FairPrice shoppers had an Own Brands product in their basket at checkout.
What consumers first perceived as cheap or low-quality options, most now see as sensible, pragmatic and value-for-money. Supermarkets have grown their portfolio of house brands and private labels by leaps and bounds in recent years – our Own Brands range comprises more than 3,500 products today.
House brand and private label product ranges are moving beyond meeting necessity-driven needs, but the question for retailers is: Where do we go from here?
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Own brands offer retailers an incredible advantage in meeting rapidly evolving consumer expectations for not just value, but quality and excitement.
Affordable indulgence and excitement
Singapore consumers today have more adventurous and sophisticated preferences than ever before. From kunafa chocolate to ramyeon featured in the latest K-drama or hawkerpreneurs with a fresh new take on a local classic, global, regional and local trends are becoming increasingly significant drivers for diverse retail offerings.
Own brands could enable retailers to more directly capitalise on this demand – the key is in expanding house brand or private label product ranges beyond necessities while still delivering on value.
For example, consistently investing in launching new flavours and maintaining the affordability of our house brand chips and nuts have resulted in them being the most popular with customers in their respective categories.
Retailers can also elevate their own brands by introducing affordable indulgences. This could include launching products that customers perceive as 'premium' options, like truffle chips, for example.
Delivering on evolving essential needs
Own brands have a history of meeting essential needs, but essentials have taken on a very different meaning for consumers today compared to 50 years ago.
Now, customers want value for money, but they also want to engage with retailers that consider the health and wellness benefits of their offerings, their customers' age-based preferences or requirements, and the sustainable production of products.
This is a key tenet of our Own Brands expansion strategy – providing options that address the wide and evolving variety of consumer necessities today, from low-sodium soya sauce to Omega-3 eggs, sustainably packaged vegetables and everything in between.
Consistent access and value
While consumers' palates continue to expand, the same cannot be said for their wallets, and with good reason. Global economic uncertainty is at an all-time high, and rising costs continue to be a top concern for everyday Singaporeans.
This has also had a significant impact on retailers. Many continue to struggle with mitigating the ripple effect of increasing operating costs and not passing this on to their customers.
Own brands – and their clear value-driven proposition for consumers – offer retailers a way to bridge this gap. The challenge lies in finding creative ways to maintain easy-on-the-wallet price points in today's operating environment.
What we have found to be an effective solution is moving more and more upstream with our sourcing and production of our Own Brands products. This might entail acquiring a stake in a producer of pork products, investing time to understand the ins and outs of salmon farming directly from a source, or finding vertical integration synergies for products and suppliers across categories.
The end goal is to keep our Own Brands prices affordable, while gaining better oversight on quality and building a resilient supply chain.
A strategic lever
Singapore's retail landscape is becoming increasingly complex, as is the global economic environment in which we operate. The remarkable growth of house brands and private labels in recent years underscores the critical role they play for retailers today.
Own brands have proven their ability to meet consumer needs, especially in times of uncertainty. By investing in understanding fast-evolving needs and preferences, prioritising strategic sourcing, and integrating excitement and innovation into the development process, retailers can continue leveraging own brands as a powerful vehicle to navigate complexities and thrive in the years to come.
The writer is the group chief executive officer of FairPrice Group