Supermarket “house brands” post sales volume increase

Filipino consumers become more selective in buying goods

(Manila, Philippines, March 11, 2010) – Supermarket “house brands” or grocery items bearing supermarket brands gained 15% increase in sales volume in 2009 as consumers began buying more affordable household items and food products after several price increases in the past months.

House brands, which include tissue products, packaged food, frozen goods, and cleaning aids, are15-20% cheaper than branded items or consumer brands according to the Department of Trade and Industry (DTI). The house brands are less expensive than branded grocery items due to lack of advertising and marketing.

DTI explained that although house brands are cheaper than more popular consumer brands, they have the same quality as those of branded grocery items and have been inspected and registered in different government agencies.

House brands have provided consumers a broader selection of affordable, quality goods in the market. More importantly, it has encouraged local manufacturers to create products that could compete with branded items. Leading tissue manufacturer Sanitary Care Products Asia (SCPA) supports the increasing popularity of house brands, as it develops price consciousness among consumers.

“The increase in sales volume of house brands shows that Filipino consumers are becoming wiser when it comes to choosing necessary household products. They’ve come to know that they can get the same value as popular brands with less cost through these house brands,” SCPA Marketing Communications Director Lea Sio said.

SCPA is the tissue supplier of several leading supermarkets in the country. In addition, SCPA continues to produce innovative and high-quality tissue products bearing the SCPA brand. As house brands have started to increase their sales, local manufacturers and suppliers like SCPA take it as a challenge for manufacturers to focus more on product development and pricing.

“Despite the increasing popularity of house brands, local manufacturers and suppliers still have good sales performance. House brands have made the market more competitive, which has an overall positive effect on private companies who are both manufacturers and suppliers of goods,” she added.

In Europe, most consumers prefer to buy house brands or what they call “private-label brands” due to their affordable prices. In United Kingdom, private-label brands’ market share was posted at 50% last year, according to the Private Label Manufacturer Association (PLMA). European private-label brands are produced by retail chains and sold at lower prices than the popular international brands.

About Sanitary Care Products Asia
Sanitary Care Products Asia (SCPA) is a local manufacturer of hygienic tissue products made from 100% virgin pulp. Pulp fibers used in SCPA products come from reforestated trees from different parts of the world, making it an environment-friendly brand. SCPA’s wide range of paper products includes bathroom tissue, facial tissue, table napkins, and paper towels. Over the years, its product line has expanded into various hygienic items such as cotton balls and cotton rolls. Established in 1996, SCPA continues to serve over 5,000 stores with its innovative paper and hygienic products distributed nationwide. Today, SCPA has seven branches and 13 office satellites in different regions of the country.