SINGAPORE: As prices rise in Singapore, many shoppers turn to house brands to stretch their budgets.
The 2024 Shopper Trends report by NielsenIQ (NIQ) shows that house brands are becoming increasingly popular among Singaporean consumers as a cost-saving alternative to well-known name brands.
About 63% of shoppers prefer house brands because they are cheaper, while another 48% value them for their good value for money.
Nearly every shopper in Singapore (95%) has bought house brands in the past year. In addition, 33% are buying more house brands now compared to 27% in 2021.
House brands are especially popular for items like paper products (49%) and household goods (40%), where people find they can save the most.
The rise in house brand purchases is closely linked to increased price awareness among consumers. According to the report, 80% of Singaporean shoppers are now more conscious of prices than before.
In addition, 89% of shoppers report feeling the impact of inflation on food prices, which has led 65% to focus on essential items and cut back on luxuries.
To save money, 59% of shoppers seek out special deals or discounts, a rise from 47% in 2021. Also, 70% are taking advantage of offers, a 5% increase from 2021.
In other parts of Asia, such as Vietnam (60%) and Thailand (72%), shoppers are also acutely aware of price changes.
Value and convenience are also influencing how and where shoppers spend. While Asian shoppers have traditionally relied on channels like online stores, fresh marts, and hypermarkets, their habits are changing.
In Singapore, 75% of shoppers now visit multiple grocery stores, averaging 2.9 stores over four weeks, up from 2.7 in 2022. Singaporean consumers also use an average of 5.1 shopping channels, including online and in-store options, a notable increase from 3.6 channels in 2019.
Online shopping is the most popular, with 66% of respondents making purchases online within four weeks, followed by hypermarkets (24%) and convenience stores (6%).
Ervin Ha, Consumer and Marketing Insights Leader (Singapore) at NIQ, noted that the changing shopper landscape in Asia reflects the region’s growing focus on price sensitivity.
He advised retailers, “With the growing trend of customers looking to maximise value and online shopping, retailers with house brands should seize this market opportunity for their product and channel offerings and work to build brand love as well as customer loyalty.” /TISG
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