We might be 2 months early but 2020 looks set to be one where there will be greater moderation of grocery and cooked food prices. A recent news article reported about the formation of the NTUC FairPrice Group – a new entity comprising 3 of the Labour Movement’s social enterprises: FairPrice, Foodfare and Kopitiam.
None of these brands are a stranger to us, as they are brands we come across in our daily lives. Let’s examine how these 3 social enterprises joining forces under one umbrella could certainly spell more savings for us across its integrated range of products and services.
- Bigger is better
With this merger in effect, NTUC FairPrice Group will have 573 outlets in total, including supermarkets, hawker centres, food courts, coffee shops, pharmacies and convenience stores. This would give NTUC FairPrice Group higher bargaining power when it comes to negotiating with suppliers and doing bulk purchases. Mr James Fong, a manager of Singapore Institute of Retail Studies was also quoted as saying that the business alignment ensures less duplication and higher internal efficiency.
On top of that, consolidating the various business units will allow NTUC FairPrice Group to ensure a “seamless” customer experience. They can also continually evolve their cross-promotions across their omni-channel retail and dining network to suit the needs of consumers.
- Catering to changing lifestyles
With the increasing popularity of food delivery apps and more Singaporeans eating out, there has been a noticeable change in the modern lifestyle.
NTUC FairPrice Group’s integrated range of products and services such as groceries, ready-to-cook and ready-to-eat offerings, on-premise meals and food takeaways is poised to be able to cater to changing consumer lifestyles, not only offering great value, but also ease and convenience.
- Economies of scale can be passed to consumers
Against the backdrop of rising cost of living, NTUC FairPrice Group is set to play a pivotal role in helping Singaporeans manage their food costs.
“Affordability is high on the agenda. The formation of FairPrice Group seeks to put customers first,
provide better value for all and make everything about food easy.”
– CEO Seah Kian Peng
Because of the bulk procurements, NTUC FairPrice Group is able to pass some of these economies of scale back to consumers and offer various cost saving initiatives. NTUC FairPrice has already instituted a price freeze on a basket of 100 FairPrice house-brand products and there are plans to introduce more lower-priced food options at its Foodfare and Kopitiam outlets.
- Local SMEs to benefit too
Besides giving back to the consumer, local SMEs who supply products to NTUC FairPrice can also benefit from their Suppliers Support and Development Programme. Shortened payment terms, promotion of their products and discounts on listing fees are offered to local SMEs in a bid to help them ease challenges they face.
NTUC FairPrice carries about 5,000 locally made food products, of which 30 per cent are sourced from SME suppliers. Over 400 SMEs have benefitted from this scheme, allowing locally made products to gain a foothold in the domestic market.
NTUC FairPrice Group – The New Way Forward In Food
With so much synergy between the three social enterprises, it’ll be really interesting to see what new offerings NTUC FairPrice Group can come up with to offer value to the consumer as well as help Singaporeans address cost of living concerns.