How to grow via premiumisation
This article is part of a series of articles on premiumisation. Read more.
Need to know
- A new affluent class is becoming an important source of new buyers for premium products in China.
- Consumers are increasingly willing to “trade up". Even in relatively low-involvement, fast-moving consumer goods (FMCGs) categories, twenty percent of Chinese have bought more expensive products in the past year.
- China’s upper middle class also invests in “experiences” to provide a broad world view.
- However, there are tensions in this evolving society as people to struggle to ‘do it all’. Five strategies marketers can employ to maximize brand relevance are outlined.
Due to rising incomes and expanding lifestyle choices, the motivations of China’s emerging affluent class –primarily in their 30s and 40s – are evolving rapidly. Compared with 10 years ago, they are driven by the challenges of balancing multi-dimensional roles, rather than achieving basic professional success. As a result, while China grows more price sensitive as the economy slows, the emerging affluent are willing to pay a price premium for goods and services that elevate their own style and accelerate their journey to success.