Did you know that Foodpanda has also launched its grocery brand, "Bright" available exclusively on its app? This signifies the undeniable growth of the house brand and highlights the strong momentum behind this trend.
Top 3 Retailers and Categories for House brand Promotions in 2024 in hyper & supermarket:
MailerTrack data highlights Frozen Food and Snack Food as top categories for house brand promotions in hypermarkets and supermarkets. Lotus’s and Aeon led the charge, with Lotus’s nearly doubling its promotions in these categories, reflecting high consumer demand. While Lotus’s had the most overall promotions, Econsave broadened its house brand offerings from 44 to 51 categories. Although Aeon reduced the number of promoted categories, it introduced new ones like Oil and Cooking Noodles, showcasing a strategic shift in their approach.
House brand suppliers are seizing the opportunity in the house brand market. So, how do house brands build their brand identity?
Improved Quality and Consumer Trust
Quality Enhancement: Other than the price advantage, the improvement in house brand product quality has significantly increased consumer trust in these products, making house brand strong competitors to branded products.
Brand Loyalty: Consistent, high-quality leads to increased consumer trust, thereby boosting brand loyalty. A successful house brand can establish strong brand recognition, encouraging repeat purchases.
Effective Promotional Strategies
Aggressive Marketing: Retailers invest heavily in promoting house brands through in-store displays, discounts, bundle deals, and loyalty programmes.
Collaborations: Collaborations with well-known brands enhance house brands' appeal. For example, the "Purchase RM15 & above of Super Classic Coffee FOC Lotus's Sweetened Creamer" promotion combines a popular house brand with a branded product, adding value for consumers and encouraging them to try house brands.
Product Diversity and Expansion
Wide Range of Offerings: Retailers continually expand their house brand offerings, covering everything from basic groceries to premium and niche products. This diversity helps attract a wide range of customers and reinforces the perception of house brands as comprehensive and reliable choices.
How does house brands impact the Grocery Sector?
In the grocery sector, where house brands have become increasingly prevalent, many branded products have had to lower prices or offer frequent promotions to compete. This increased competition has forced branded products to adjust their pricing strategies, benefiting consumers through more affordable options.
In addition, emphasising quality and value is a key driver of house brand success. Improved product quality helps house brands shed their image as inferior substitutes. Combined with competitive pricing, house brands have become an attractive option for price-sensitive consumers.
These trends show that retailers are meeting consumer demand and positioning house brands as valuable alternatives to branded products. By effectively leveraging these insights, retailers can adjust their promotional strategies to capture a larger market share and foster deeper customer engagement.
House brands are redefining consumer expectations and setting new standards for value and quality in the FMCG sector. Through these strategies, retailers can drive sales and build long-term customer trust and loyalty. Are house brand products a threat to your products?
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