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Tue, Jan 20, 2009
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House brands a hit with middle-income families

By Joy Fang

HOUSE brands in supermarkets are a big hit among middle-income families, according to a recent survey by The Nielsen Company.

Results released yesterday revealed that middle- and high-income households are switching to house brands because they find those products a better bargain.

Households with a combined income of above $6,000 who buy house-brand products have increased by a staggering 46 per cent. They now form 28 per cent of total house-brand buyers.

'High-income households are showing a strong penchant for these cheaper choices,' said Ms Ooi Pin Pin, associate director of retailer services from The Nielsen Company.

However, the largest share of the pie goes to households with a combined income of above $4,000, which now make up 49 per cent of total house-brand consumers. Sales figures for house brands at supermarkets have been increasing steadily since 2007 - from 7 per cent between May and October 2007, to 20 per cent between November 2007 and April last year.

Between May and October last year, the number grew to 26 per cent. Over nine in 10 households tracked for the survey had bought at least one house-brand item between June and November last year, spending at least $4.50 on such products on each supermarket visit.

Toilet-roll and facial-tissue house brands are top picks, making up 43 per cent and 39 per cent of house-brand sales, respectively.

According to the survey, house brands are priced 11-per-cent lower than branded products on average.

Shoppers told my paper that the lower price is one reason for the switch. Mrs Tay Bee Kee, a teacher who is in her late 50s, said that she buys house brands because they are good bargains.

Mrs Tay, whose household income is above $6,000, spends about $80 to $100 every week on groceries.

She did not think that quality would be compromised, and said: 'I think the supermarkets have certain standards because they have to safeguard their reputations.' Freelance writer Mavis Chng, 23, whose family's combined income is above $4,000, agreed.

'The quality of some house-brand items is pretty good and they are a whole lot cheaper,' said Ms Chng, who buys house brands of wet tissues, olive oil and eggs for her family.

Still, she would stop buying some of those products if she felt that their quality was poor.

'If we tested something and we don't like the quality, we wouldn't buy them (just) to save money,' she said.


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House brands a hit with middle-income families
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