Gerry Lee - Singapore Retailers Association

“Doing Well, Doing Good,
Doing More”
Mr Gerry Lee
Managing Director (Business Groups)
NTUC Fairprice Co-operative Ltd
DISCOVER ▪ DIFFERENTIATE ▪ DELIVER
1973 – NTUC Welcome Supermarket, birth of a co-operative
Launched by the National Trades Union Congress amidst global oil
crisis
1983 – NTUC FairPrice: Merger between Singapore Employees
Co-operative and NTUC Welcome Co-operative Ltd
Social Mission:
To moderate the
cost of living in
Singapore
1

Our Growth
1973
One store
30 employees
Revenue: S$9m
Today
250 stores (Incl. convenience stores)
More than 9,000 employees
More than 50% market share
Revenue FY 10/11: S$2.4 billion
What makes FairPrice DIFFERENT?
“Business enterprises serve their customers to make profits for their
shareholders. In our case, we make profits so that we can serve
the workers and public consumers better. We must keep creating
greater social impact for our workers and the public because that
is our purpose in life as a social enterprise.”
– Mr Lim Swee Say, Secretary General, NTUC, Labour Movement
Social Enterprises Annual Report 2008
2

Our Vision
We aspire to be Singapore’s Leading
World-Class Retailer
with a Heart
Our Brand Promise
Quality
Value
Service
3

What we DELIVER.
Economically:
Socially:
Continuous Improvement:
Doing Well
Doing Good
Doing More
Business Performance FY2010/2011
Group Revenue: S$2.4 billion
More than 50% market share
4

Differentiated retail formats
Located island-wide. FairPrice
supermarkets seek to meet daily
essential needs for customers.
Today
Online supermarket growing at fast
pace. Serves over 20,000
subscribers.
Offer a wider product assortment
and value-added services. FairPrice
Finest aims to bring the fine life
closer to shoppers.
24-hour minimart convenience
store concept offering wide product
range including fresh and ready to
eat food products.
Offer a wide variety of products
and services including electronics
and casual apparel.
24-hour convenience stores in high
traffic areas and Esso stations.
Doing Well
Professionalism
Infrastructure Capability
Customer Focus
Brand Equity
Strategic Partnerships and Alliance
5

Doing Well
Professionalism
Infrastructure Capability
Customer Focus
Brand Equity
Strategic Partnerships and
Alliance
Doing Well
Professionalism
“ This co-op supermarket must be different. It is
going to be efficiently managed just like any
commercial supermarket – competitive prices,
good display of items housewives want, strict
control on shoplifting, and proper accounting to
show a clear profit. ”
- Mr Lee Kuan Yew, Prime Minister Singapore (1965 - 1990)
at the opening of the consumer co-operative (Welcome) supermarket
in Toa Payoh on 22 July, 1973
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Doing Well
Professionalism
Think and act professionally
Strong sense of discipline, accountability and
transparency
Good corporate governance
Meritocratic system
Spell out clear measurements and deliverables
Offer competitive remuneration packages
Doing Well
Professionalism
Infrastructure Capability
Customer Focus
Brand Equity
Strategic Partnerships and
Alliance
7

Doing Well
Infrastructure Capability
Support business with an innovative and
efficient infrastructures
Leverage on the latest technologies to:
Increase operational efficiency
Keep costs down
Enhance products and services
State of the art warehousing technology and
inventory management systems
Doing Well
Infrastructure Capability
Centralised warehousing and distribution system
Three distribution centers
Cost savings (labour, transportation, administration)
Better stock monitoring and control
The Straits Times, 29 May 2009
8

Doing Well
Infrastructure Capability
HACCP-certified cold chain management systems
Fresh Food Distribution Centre completed in Sep 2002
Size: 130,000 square-feet
24-hour intelligent temperature monitoring system
Doing Well
Professionalism
Infrastructure Capability
Customer Focus
Brand Equity
Strategic Partnerships and
Alliance
9

Doing Well
Customer Focus
Customer focus is one of our core values
More than half a million members
FairPrice rewards members with more than
S$40 million in rebate and dividend payouts
yearly
Customise offerings to members
Doing Well
Customer Focus
Improving Service Standards
Berita Harian, 23 March 2010
Lianhe ZaoBao, 23 March 2010
The Straits Times, 23 March 2010
My Paper, 23 March 2010
10

Doing Well
Customer Focus
Improving Service Standards
FairPrice Receives S-Class Certification
FairPrice Receives Businesses for Families Mark
Lianhe Zaobao, 1 September 2011
Lianhe Zaobao, 3 September 2011
Doing Well
Professionalism
Infrastructure Capability
Customer Focus
Brand Equity
Strategic Partnerships and
Alliance
11

Doing Well
Strong Brand Equity
Communications has become highly interconnected
and open.
Value of word of mouth is significant
Creates a strong brand that is trusted by consumers
Our accolades
Reader’s Digest Trusted Brand
Trusted Brand (Platinum) for Supermarket Chain (2008 – 2011)
Trusted Brand (Gold) for Cooking Oil and Rice Category (2008 – 2011)
Superbrands
Superbrand status since 2002
Highest ranked homegrown brand in 2010
Asia Pacific Top 100
Top local brand ranked 4th among the Top 10 Brands in
Southeast Asia
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Our accolades
Doing Well
Professionalism
Infrastructure Capability
Customer Focus
Brand Equity
Strategic Partnerships and
Alliance
13

Doing Well
Strategic Partnerships and Alliance
Strategic Alliance with
ExxonMobil
Over 60 FairPrice Xpress
and Cheers stores at Esso
Petrol Stations
Offers 24-hour shopping
convenience for
motorists on the go
Doing Well
Strategic Partnerships and Alliance
Partnership with OCBC Bank
First banking product
launched in April 2007
First supermarket to offer
financial services to
customers
Personalised services at
OCBC Lite branch
The Straits Times, 21 Sep 2011
14

Doing Good
Social Focus
Employee Focus
Corporate Citizenship
Doing Good
Social Focus
All co-operatives are set up for a
social mission.
Social Mission:
To moderate the
cost of living in
Singapore
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Doing Good
Social Focus
Over 500
EveryDay Low
Price (EDLP)
essential items
priced equal or
lower than other
retailers
More than 2,000
Housebrand items
priced at least
10% cheaper than
comparable
national brands
2%
Discounts
for Seniors
on Tuesdays
LinkPoints
loyalty
programme &
instant points
redemption
Doing Good
Social Focus
First Supermarket to Drop Rice Prices in 2008
The Straits Times, 20 June 2008
16

Doing Good
Social Focus
5% Housebrand discount scheme for 24 month (Dec 07’ – Dec 09’)
Helped customers save est. $12 million
The Straits Times, 14 January 2009
The New Paper, 14 January 2009
Doing Good
Social Focus
10% Housebrand discount for Plus! Members and 5% for non-members)
From Mid Feb 11’ to July 11’
The Straits Times, 15 February 2011
TODAY, 1 June 2011
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Doing Good
Social Focus
Diversifying sources of food supply
“….if there are issues with a
particular market on the vegetable
supply due to various reasons,
FairPrice’s strategy lies in
diversifying their supply sources to
help lessen the impact on the
overall supply and prices of
vegetables.”
said, Mr Tng Ah Yiam, Managing Director
(Group Purchasing, Merchandising and
International Trading from NTUC FairPrice)
Doing Good
Social Focus
Contract Farming Ensures Supply Stability &
Over 80 contract farms
for vegetables:
Indonesia
Malaysia
Singapore
Thailand
Australia
Quality Control
Continually exploring
other areas
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Doing Good
Social Focus
Other Price Control Strategies
Rice Stockpiling
FairPrice stockpiles at least
3 months’ demand for rice –
cushion price hikes and
sudden supply shortage
Pricing Policy
Uniform pricing for all
FairPrice supermarkets,
FairPrice Finest, FairPrice Xtra
stores
Doing Good
Social Focus
Employee Focus
Corporate Citizenship
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Doing Good
Employee Focus
Employees play a big
role in making
customers happy
Aims to be the
“Best Place To Work”
Happy Employees =
Happy Customers
Doing Good
Employee Focus
Attract, motivate and retain the right people
Develop each individual to his fullest potential
Create a culture of continuous learning through
training and development
Provide competitive remuneration
Provide a satisfying, safe and caring work
environment
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Doing Good
Social Focus
Employee Focus
Corporate Citizenship
Doing Good
Corporate Citizenship
FairPrice strives to be the “Best Corporate Citizen”
Build a better community and environment through the
way we conduct our business and how we interact with
our stakeholders
Creates positive impact on the triple
bottom line
People
Planet
Profits
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Doing Good
Corporate Citizenship
Launched in March 2008
Mission: “Provide a
better life for the
community
Strategic thrusts – to
help the poor and
needy; to help in nation
building and community
bonding; to advance the
welfare of workers
Doing Good
Corporate Citizenry
FairPrice Foundation Took the Lead And Donated S$500,000 To The
Ren Ci Charity Drive
Shin Min Daily, 14 January 2010
The Straits Times, 15 January 2010
Lianhe Wanbao, 14 January 2010
22

Doing Good
Corporate Citizenry
10 Community Chest-Funded Family Service Centres Received S$1
Million In Donations
The Straits Times, 20 March 2010
Lianhe WanBao,
19 March 2010
Berita Harian,
20 March 2010
Doing Good
Corporate Citizenry
FairPrice Walk For Rice @ South-East Raised
One Million Bowls Of Rice To Help Needy Families since 2009
My Paper, 1
December
2010
Berita Harian, 20 October 2010
Lianhe Zaobao, 5 October 2009
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Doing Good
Corporate Citizenship
Helping business partners tide over recession
The Straits Times,
5 March 2009
Doing Good
Corporate Citizenry
First Eco-Friendly
Supermarket
The City Square
store was launched
in 2009 and features
several eco-friendly
and energy-saving
solutions.
Bring Your
Own Bag
Encouraging
customers to
reduce plastic
bag wastage with
rewards since
2007.
FairPrice Share-A-
Textbook Project
Launched in 1983, the
Project has collected
over 1.8 million used
textbooks and benefited
more than 140,000
needy students
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Doing Good
Corporate Citizenry Recognitions
Singapore Compact
Community Developer Award 2010
CSR Recognition Award 2009
Singapore Retailers
Association (SRA) Awards
2010 Green Retailer of the
Year Award
Singapore Environment
Council
Eco-office Label Certification
2010-2012
Community Chest
2010 - Corporate Silver Award
And Special Events Bronze Award
2008 - ComChest's Corporate
Platinum Awards
Doing Well, Doing Good
Doing Well
Professionalism
Infrastructure
Capability
Customer Focus
Brand Equity
Strategic
Partnerships and
Alliance
Doing Good
Social Focus
Employee Focus
Corporate
Citizenship
25

Doing More
Expand platforms to engage customers
Raise innovation and productivity
Beyond Singapore
Doing More
Customer Engagement
Reaching out to younger customer segment in the new media
space
26

Doing More
Customer Engagement
That’s My FairPrice facebook
http://www.facebook.com/thatsmyfairprice
Doing More
Customer Engagement
http://www.whatsupatfairprice.com.sg
27

Doing More
Innovation & Productivity
Improving Service Standards
Berita Harian, 4 June 2011
Lianhe Zaobao, 4 June 2011 TODAY, 4 June 2011
Doing More
Overseas Venture
Joint venture with Saigon Cooperative
Leading retail co-operative in the region
Has a strong customer following
Is deeply rooted in the hearts of consumers in
Vietnam
Put customers’ interest high in the agenda of
business approach
28

Doing More
Overseas Venture
Exchange expertise, knowledge, ideas and culture
CONCLUSION
Discover opportunities.
Differentiate brand
proposition.
Deliver by doing well,
doing good and doing
more.
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