Tuesday, June 13, 2006

Tesco convert

A look around the house reveals that (without realising it) we have converted to Tesco.

I am talking about the some1,400 own brands of products and not other brands carried in their stores. These items are divided into three main categories, namely:
1. Tesco Value range
2. Tesco Choice range
3. Tesco UK Imported range

How did we get converted?

Its not difficult to explain. We love shoping at their Damansara outlet because it is near and also because of the wide choice of "low priced" products. The Bonuslink points are extra.

At first we were a bit worried about the quality of their own-brand products because we have always subscribed to the "pay peanuts, get monkeys" philosphy. However, we were taken aback after we tried a few items and discovered that the quality didn't differ much if not better as compared to more expensive brands. And as they say, the rest is history.

Now, some of the Tesco products we use everyday in the house: toothpaste, mouthwash, toilet cleaner, face tissue, hand washing liquid, dish washing liquid and anti-bacterial washing liquid for baby clothes.

In my Office: Disgestive biscuit, wet tissue wipes and mineral water.

I also carry a crate of mineral water and a pack of face tissue in my car. All from Tesco.

For your information, Tesco PLC is the largest British retailer, both by global sales and by domestic market share, and the fourth largest retailer in the world behind Wal-Mart of the United States, Carrefour of France, and The Home Depot of the United States (from Wikipedia).

Tesco Stores (Malaysia) Sdn Bhd was incepted on 29 Nov 2001, as a strategic alliance with Sime Darby Berhad (which holds 30% of total shares). It's first store was officially opened in May 2002 in Puchong.
Now they have 13 stores all over Malaysia.

Related posts:
- The Hypermarket Price Wars



Jen said...

That's sort of like everyone carrying that santizer hand gel with them everywhere that they go. Or everyone buying plasma t.v.s.

P.s.- Thanks for placing yourself on my map!

terenceg said...

Tesco assumed during 2003/04 that Carrefour was with RealRewards when the latter ran a promotions. which in fact they did not !

A hypermarket's best selling item is their own products which is totally own Brand, totally own pricing thus making profit margin a close 5%

All things in hypermarket and supermarkets and all...margins of profit is only 1-3%. very low

how they survive is by BULK buying and selling at slightly discounted rates from normal shops.

That's where u get PRICE WAR, the more and more BULK purchase the lower the price to fight !

simon said...

tesco instore brands are actually quite decent, esp the food stuff, unlike other hypermarts that usually have crap products in the name of affordability.

KY said...

walmart does the same thing. even Giants does these days. higher profit margin, cutting off the middleman


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