Will FairPrice's hard-earned brand trust take a hit as another fishy mislabelling video surfaces?

NTUC FairPrice has come under the spotlight again for mislabelled products as a video of its salmon being weight surfaced online. The video shows a shopper measuring the weight of a slab of salmon sold at a FairPrice Xtra outlet at Ang Mo Kio Hub. Although it was labelled as 0.296kg, the salmon's weight only came up to 0.176kg.  According to calculations by MARKETING-INTERACTIVE, this meant the salmon, which originally retailed at SG$9.15, should have been approximately SG$5.44. Netizens commented on the video that was circulating on Facebook and called out FairPrice for its repeated mishaps in labelling, with some even calling for a boycott of the homegrown supermarket chain.

A FairPrice spokesperson told MARKETING-INTERACTIVE that based on the initial assessment from the video, the mislabelling incident which occurred at the FairPrice Extra store at Ang Mo Kio Hub was likely caused by human error. "We ask that the customer who posted the video contact us to provide further information so that we may conduct a more comprehensive investigation. Regardless, we apologise for the public concern this might have caused and agree this should not have occurred," the spokesperson said. Weighing scales across all FairPrice supermarkets, FairPrice Finest and FairPrice Xtra outlets are said to be independently calibrated by authorised vendors certified by the authorities. The scales are checked on a yearly basis and undergo maintenance twice a year, thereafter, it is affixed with their respective certification dates, the spokesperson explained.

To add salt to the wound, Shin Min Daily News’ reporter also went around FairPrice’s competitor stores to check the accuracy of the weight of chicken breasts from supermarkets such as Giant and Cold Storage, after the initial labelling issue with the chicken breast. The reporter's randomised test revealed that the weight of the meat at its competitors were largely correct, with some even exceeding the weight stated on the label. 

Nonetheless, FairPrice's spokesperson said that following the incidents, FairPrice will implement added measures to ensure label accuracy. This includes daily checks on the scales before the start of business and rechecking the weight of fresh products that have already been labelled.

"We kindly request that customers who find any labelling discrepancy of products to approach our store staff immediately so that we may rectify the issue in a timely manner. To safeguard the interests of our customers, we have in place a policy where we will honour a full refund or exchange for products that have been inaccurately labelled," the spokesperson reiterated. 

The topic around mislabelling first came to light after a TikTok user called out FairPrice for incorrectly labelling the weight of the boneless chicken breast she bought from the store. The brand promptly responded to the issue over the weekend, apologising for the error and said it will “honour a full refund or exchange for products that have been inaccurately labelled”. FairPrice later updated its statement and shared that it has contacted the customer to address her concerns and investigated the cause of the alleged mislabelling.

While FairPrice initially earned praise from industry players MARKETING-INTERACTIVE spoke to for its quick response and getting in touch with consumers, the second incident might just be a little bit of a dampener for the brand – despite the possibility of it being isolated incidents out of the thousands of products the store labels.

While only time will tell if the posts will leave a detrimental impact on the FairPrice brand, it is worth noting that over the past few years NTUC FairPrice has made an impact on Singaporeans’ love for the brand. Last year, it took the lead in YouGov’s annual BrandIndex Buzz Rankings in Singapore, dethroning five-time defending champion Singapore Airlines.

However, all of that could diminish quickly if negative reviews are not tackled quickly given social media not only allows consumers to air their grievances publicly, but also adds pressure on brands to have a quick responses. Moreover, with consumers now holding brands more accountable, social media complaints often also get amplified faster, sometimes causing harm to a brand’s long-term image.

In fact, the rise of user generated content which might be detrimental in nature has also gone up steady rise since the onset of the COVID-19 crisis, research from CX and digital solutions firm TELUS International said. Another recent survey by the company also found that all generations of buyers consult online reviews before making a purchase, especially Millennials with 91% of respondents saying they consult them at least some of the time and more than half (56%) saying they consult them all the time. Thus, negative incidents such as these can impact a brand’s overall trust factor.

Meanwhile, the Edelman Trust Barometer Special Report: Brand Trust in 2020, found that trust is the second most important factor in the decision to buy a new brand (53%) or become a loyal customer (49%), trailing only price and affordability at 64%. Of course, online reviews and conversations are the first touch point for potential new consumers to decide if they want to purchase a brand. As such, online reputation and reviews can go a significant way for any brand looking to grow its revenue. 

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