ICA Ho Chi Min FairPrice Housebrand

Introduction to FairPrice Housebrand

FairPrice Housebrand - Introduction.

SOCIAL MISSION To moderate the cost of living in Singapore through stabilising prices in essential categories to prevent profiteering. Introduced FairPrice Housebrand Products in 1985
Offer Better Value & Savings to customers Prices are 10 15% lower than those of comparable products. Introduced Sub-brands & Private labels under the FairPrice Housebrand umbrella over the years
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FairPrice Housebrand Objectives

FINANCIAL VIABILITY Committed to protecting and increasing GP$ / GP%

COMPETITIVE RESPONSE Diluting strength of national brands in selected key categories.

FairPrice Housebrand Objectives

Store brands help retailer Differentiation Help Fairprice differentiates itself from other Chains, increasing the psychological costs for our customer switching retailers.

Build Stores Loyalty Heavy store brand buyers are considerably more store loyal. 1 % point increase in store brand is associated with 0.3% increase in market share.

Global Rice Crisis in Year 2008

Social Role Ensures Availability of Rice Supply
FairPrice is 1 of the major Rice Importers in Singapore Imports rice directly from various sources for all its Housebrand rice, eliminating middlemen costs.

Diversified sources ensure supply reliability and price stability.

FairPrice moderated and staggered price increase of Rice Maintains more than 3 month stockpile in warehouse
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Inflation in Year 2007

Social Role Help Combat Inflation

5% discount extended for over 500 FairPrice Housebrand items from Dec 2007 Dec 2009
Kept prices of daily essential items affordable and stable - Rice, Oil, Sugar etc Customers saved SG$12 million over the 2-year period

Rising Cost in Year 2011

Social Role Relaunched 5% Discount
Revived the 5% discount to help customers cope with rising costs. Price freeze for over 500 FairPrice Housebrand products were till 31st May 2011.

Price freeze for over 13 types of FairPrice Housebrand Rice till 31st Aug 2011.

BRAND ARCHITECTURE

FAIRPRICE MAIN STREAM

Brand trusted by customers to deliver quality products at great value & service always. Committed to keeping prices low & affordable Represented in a wide range of product categories ranging from key essentials to those of premium quality

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PASAR BRAND
Sub-Brand of FairPrice Housebrand
Developed to provide quality fresh foods, fruits and vegetables at comparable price to traditional wet markets

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HOME PROUD BRAND

Sub-Brand of FairPrice Housebrand Represents range of products for household needs from plastic ware to electrical items

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BUDGET BRAND
Private Label of FairPrice Housebrand Offers range of frills free products that caters to the needs of cost conscious customers

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PRIVATE LABELS
Brands owned by NTUC FairPrice Covers different spectrum of products from Grocery, Frozen to BET

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Till date, we have more than 2000 SKUs for Housebrands & Private Labels
HouseBrands / Private Labels FairPrice Main Stream Pasar Home Proud Budget Private Labels No. of SKUs More than 700 More than 500 More than 450 More than 40 More than 200
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FairPrice Housebrand Market Share (AC Nelsen)

- FY 09/10 : 71.08% - FY 10/11 : 72.5%

Target : Above 70%

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Awards Singapore
Readers Digest Trusted Brand
FairPrice Housebrand is proud to be the Gold Award Winners for both Rice & Cooking Oils.

This Award reflects the consumers choice of their most favourite brands available in the market.
Criteria : Trustworthiness & Credibility, Quality, Value, Understanding of Customer Needs, Innovation & Social Responsibility.

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FairPrice Housebrand Cooking Oils

Awarded Gold for 4th year in a row from Year 2008 2011.

FairPrice Housebrand Rice

Awarded Gold in Year 2009 & 2011

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Quality Assurance
Lab. Test, Factory audit, monitoring, awareness

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Tran Fat Free Declaration on label

First in the industries/ By law in end 10

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Allergen Declaration on HB Product Labels

FairPrice Potong Ice Cream
FairPrice Fresh Udon

FairPrice Prawn Crackers

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In-Store Housebrand Gondola End

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Housebrand Festival
Sale $3 m. 44% >

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Exhibitions
Food Expo 29th May till 2nd June 09 National Healthy Lifestyle 6th till 7th Nov 09

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Golden Chef campaign 10

2.5M, + 35%, >30%share, <inventory, 80% stores with >sale

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Xmas Riberhus cookies

>30% Sale, cater to diff. format, min. leftover

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Summary
Continue to source from around the world for quality products
Ensures each product adheres to high standards of production, hygiene and food safety Maintain pricing at 10 - 15% lower than products of comparable quality

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