How to grow via premiumisation
This article is part of a series of articles on premiumisation. Read more.
Need to know
- In urban Asian markets the growing middle class consider a huge choice of brands in store as an indicator of success. To keep up with constant novelty and innovation brands take several approaches to premiumise.
- A common theme is to take what is seen as an added value ingredient offering proven benefits in one category and then borrowing it for another, such as adding green tea to toothpaste.
- Consuming a traditional food in a premium way also adds value – for example, premium packaged coconut water rather than drinking straight from nature.
- Creating a premium experience is also a key tactic, but this must truly differ to what other brands are doing or the premium effect is lost.
- Constant innovation with new premium offerings can be the only way for brands to survive in urban markets. When a new variant becomes less appealing, another new option must quickly take its place.