Nowadays, the trend has infiltrated not only the the food and beverage realm but also fashion, beauty and hospitality.
Here are four ways Premiumisation has impacted on four different spheres and changed the way you shop and consume luxury.
A Toast To The High Life
The term Premiumisation was coined sometime in the nineties to open a new door in the alcohol and beverage market, redefine top shelf offering, and provide a taste of the higher life for consumers.
Nowadays, the trend has become a real game changer. It has introduced new production processes for wine and spirit making. It has even changed how we consume alcohol. According to Roy Morgan, we are opting for a single glass or two of a good drop, over a procession of the subpar.
“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.”
That is, those who consume premiumised beverages still want to taste the style of the brand they have come to know and love and have a range of products to chose from that offer them a taste of luxury.
A Taste Of The Aspirational
For Mary and John Poulakis, owners of high end department stores Harrolds in Australia, Premiumisation has allowed for a larger engagement among consumers. That is, those who may not be able to afford the prices of high end goods but still wouldn’t mind a slice of the luxury pie.
“Fashion is and always will be aspirational,” John says. “And Premiumisation is a fair deal for those that still want to aspire to the beauty of luxury.”
Premiumisation, in the realm of fashion, has seen an influx of luxury brands committing to the production of accessories that, at a more affordable price, still allow consumers to tap into the luxury market.
On the flip side, Premiumisation has also seen an increase in the demand for customisation, or the production of luxury goods that are made just a little more luxurious by allowing consumers to place their personalised stamp on their latest purchase.
By Virtue of Necessity
When Deirdre Light and Clive Newland, the masterminds behind the premium beauty brand, Manifesto of Light, opened their first apothecary in 1998, they did not set out to create a premium brand.
“Our highest intention, which still stands today, is to enable clients to experience the best of the best, the one percent, the ultimate ingredients that they would never be able to buy off the shelf,” Light says.
Maintaining ‘just in time’ quantities of stock, that is of the highest quality, therefore becomes a means to survive and sustain the integrity of the brand, as opposed to capitalising on the exclusivity factor.
“By virtue of necessity, we are therefore limited for a select clientele,” Light says.
Their strategy has paid off. While maintaining a relatively low radar globally, Manifesto of Light is one of two high end Australian brands to be stocked at the prestigious Joyce Beauty in Hong Kong.
Personalisation is the new Premiumisation
Daniel Hakim is the founder of the Cub Club, an upmarket venue in Sydney that aims to cater to the needs of affluent business leaders.
“What makes our venue unique is the actual people inside it,” he says. “We provide them with a venue and a place to meet each other.”
The majority of those that frequent the venue, according to Hakim, are those in the growth phase of their business and
“I understand the value of networking and being surrounded by the right people,” he says. “I also know what business members need and want so that’s exactly what the club was founded on.”
This leads him to the conclusion that Premiumisation, in the realm of hospitality, is based on personalisation.
(Source: Forbes )