, Singapore

The implications of evolving modern retail in Singapore

By Katie Ewer

In July, British retail giant Tesco announced it would delist all fruit drinks with added sugars from their shelves, and sell only 'no added sugar' variants. Why? It's part of their role as champions of the fight against the new evil: sugar. Given Tesco holds around 30% of the grocery market in the UK, the move is seriously bad news for some very big brands.

There are two key implications of Tesco's latest threat for its home market: the first is that, obviously, retailers exert an immense amount of power over manufacturer brands – it is not an even-handed partnership. The second is that the initiative was only possible because of how Tesco is perceived – a credible, innovative, reliable brand – deserving of trust, and therefore ordained with purpose.

In Singapore, we're a long way from having supermarket brands with a comparable level of economic clout and social influence. Cold Storage and Giant might have been around for decades, but emotionally, they haven't replaced traditional wet markets in the eyes of the people that shop there.

Singaporeans simply don't trust a hypermarket in the same way that they trust brand stalwarts like Ayam Brand, Lee Kum Kee, or Khong Guan. That means that in Singapore, retailer (or 'private label') brands have failed to take off. So far.

In Singapore, which has been a modern retail market for decades, private label share is a meagre 8%. That compares to a whopping 41% dollar share in the UK, and 45% in Switzerland. Will it change? Of course it will – it's just a matter of how quickly.

Singaporean shoppers might claim to be brand loyal, but of course we shouldn't believe everything we're told by respondents in an online interview. After all, this is a nation of pragmatists – if a retailer brand offers the same level of trust and prestige as a comparable branded product – and is 30% cheaper – then I know which one I'd choose.

So what can Singaporean brands do in order to stay on the front foot? Here are a few suggestions.

• Recognise that your most valuable distribution partners are also your future rivals. Plan for increased competition. Anticipate the heat.

• Behave like a category leader. Your retail partner may one day be your competitor, but that doesn't mean they're not looking for thought leadership, innovation, and collaboration from their suppliers. Think about how you can grow their business to grow your own. Don't think just about your product on shelf – think about the entire shopper experience and how you can add value to it.

• Offer shoppers a reason to pay more. Retailer brands always win when consumers perceive little intrinsic value in the branded alternative. Innovation may be your salvation.

• Invest in design. The only thing you own is yourself, so be yourself. The generic photo of some peanuts / dead fish / prawns doesn't make you a brand – it makes you a commodity. And commodities are susceptible to price wars.

Personally, I'm thankful that the retail landscape here isn't populated by corporations like Tesco. That's not a fair fight. In Singapore, we're seeing retailer brands maturing and innovating quickly – and brands are finally beginning to respond.

We may soon have a genuinely competitive market in which innovation and creativity will flourish. That's an exciting prospect.

Join Singapore Business Review community
Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

You're the reader we write for. You're also the person our partners want to reach.

If that sentence describes you — a founder, a C-suite, someone whose attention companies pay good money for — then you already understand why SBR works. We've spent twenty years earning the trust of readers exactly like you. Which is exactly what makes this an interesting place for your company to show up, too.

The ways it can show up are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The right fit depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If your company has something this audience should know about, we'd like to hear what you're working on.

No rate cards until we understand the brief. It's a better use of everyone's time.

Top News

30 One-Sentence Stories From People Who Have Built Better Habits
None of these stories are mine. They were sent to me by readers of Atomic Habits. My hope is that these examples will illustrate how real people are putting the book into practice. They will show you what people are actually doing to build good habits and break bad ones. And hopefully, they will spark some ideas for how you can do the same.
SBR 5 Lorem Ipsum News 2 [8 May]
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
SBR 4 Lorem Ipsum [8 May Top Stories]
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Exclusives

How Experts Figure What to Focus On
eliminate the distractions. Commit to one thing and become great at that thing.”
Exclusive three SBR 12 Lorem Ipsum [8 May]
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
SBR 3 Lorem Ipsum [ Exclusive 2]
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Event News

Video [Event News]
Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley