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FairPrice Group house brand arm plans to double revenue to S$1 billion by 2030
Currently, FPG said that one in three physical shopper baskets and more than seven in 10 online baskets contain house brand products.
SINGAPORE – FairPrice Group's (FPG) Own Brands & Food Solutions, the arm that develops and markets FPG's house brand products, is looking to double business revenue from S$500 million to S$1 billion by 2030.
In a statement, the FPG said that alongside this, it is working towards having one in four customers filling their basket with at least one own brand product by 2030.
The business offers over 2,000 products across 54 categories, with more than 300 products launched since 2020. The items, FPG said, are priced 10 to 15 per cent lower than leading brands but are comparable in quality.
It has also expanded its range to cater to fast-growing and popular categories such as ready to cook, bread spreads, sweet and savoury indulgence foods, biscuits, noodles, baking needs as well as household cleaning products, FPG said. Recent launches include products such as the FairPrice Truffle Potato Chips, Peanut Butter and Coconut Potong ice cream.
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Currently, FPG said that one in three physical shopper baskets and more than seven in 10 online baskets contain house brand products at checkout. Among FPG's Link Rewards Programme, there is a 22 per cent increase in purchases of house brand items, from 1.2 million members in June 2020 to 1.5 million members in June 2023.
Grace Chua, CEO of FPG's Own Brands & Food Solutions, said, "We understand that our customers are sensitive to knock-on effects of global commodities prices, labour shortages and rising utility prices leading to price inflation. With that in mind, we believe that FairPrice Group's own brand products, from everyday items like rice, oil and eggs to ready-to-cook packaged food, are helping customers to keep household expenditure in check."
FairPrice sees 'selective splurging'
Meanwhile, FPG said that it has seen consumption patterns change. There is "selective splurging on purchases that provide more experience, convenience, and immediate gratification".
"We have definitely seen consumption patterns changing, especially in the growth of health and wellness products, specialty categories such as olive oils, frozen ready-to-cook products as well as indulgent categories like snacks, chocolates and wine, which have all seen double-digit growth compared to pre-COVID-19 levels," Chua added.
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