How to grow via premiumisation
This article is part of a series of articles on premiumisation. Read more.
Need to know
- Technology players, such as Amazon, have affected middle-market brands that often have not invested sufficiently to understand their customers, or have not innovated with new propositions and fluent digital customer experiences.
- Product-line premiumisation is an opportunity for repositioning value brands that earn their customers’ trust and deliver growth through innovation, with new higher value propositions.
- Historically, successful luxury brands have struck a sensible balance between exclusivity and accessibility but many were too slow to adopt digital media and online sales, and have now had to rush to adapt to new consumer shopping habits.
- The most challenging space is in the middle market. Middle-tier brands are most likely to need to reposition, acquire competitors to gain scale, or fail when they get it wrong.
- In order to move up, either know your customers better, or develop a culture that breeds innovation and a business model that can continuously fund it, as consumers’ preferences don’t stand still.
- Brand owners in the squeezed middle space need to re-assess their brand’s positioning strategy to ensure brand differentiation distinguishes them from competitors and identify any disconnects between strategy and business objectives.