How to grow via premiumisation
This article is part of a series of articles on premiumisation. Read more.
Need to know
- Premiumisation is a strategy that has been used by brands across many categories – from travel to grocery – to differentiate themselves as consumer expectations increase
- This is particularly true of brands in Western markets. In contrast, brands in the Middle East and East Asia are still benefiting from the buoyant economies and high consumer consumption
- Due to widespread premiumisation strategies in the West, consumers have grown used to the idea of “accessible luxury” – and old cues aren’t working as well any more
- As a result, new brands are defining an emergent narrative around the concept of “premium”, which subverts yesterday’s visual and cultural cues. For example, founder stories have become those of the artisan craftsman, while dark colours connoting mystery have given way to frivolous primary colours
- Brands looking to gain a competitive advantage through premiumisation must therefore learn to abandon category tradition and subvert their existing preconceptions about what premium means today