With Digital and Innovation being banded around there is a new trend emerging which they are calling Premiumisation. This is the development of new premium or luxury products.
We are noticing a new trend where there is a desire to have quality over quantity. It is essentially the desirability of the luxury world within the function and necessity of the mass market.
The rapid wealth creation in emerging markets is bringing about new sources of demand for products like upmarket spirits.
“When people consider buying premium, they are looking for three things,” says International Commercial Director for Moët & Chandon, Bertrand Steip. “The first is brand authenticity and heritage, followed by the embodiment of a luxurious life, and finally the element of experimentation.”
For luxury brands the challenge in taking a share of the premiumisation market is how to stay true to their values. The offering needs to build on what the brand stands for and heighten its unique qualities, instead of moving away from its area of expertise without a clear purpose.
Not only does the product have to be premium but we are moving into an age of experiential consumerism; establishing a real connection and intimacy and a sense of occasion.