Consumers pay more for premium brands
05 July, 2016
Trends from the Consumer conference this year wouldn't be referred to as fresh or new, but the titles are certainly eye catching. The top three focus areas for most companies were investing in innovation, digital marketing, and developing new premium or luxury products — which they're calling Premiumisation.
Premiumisation certainly caught my eye as innovation and digitalisation have almost become necessary just to stay in business. Premiumisation however is where companies develop more premium products and it's a trend that's big in the alcohol industry.
Diageo, who creates brands like Baileys and Guinness, noticed a recent global trend where consumers wanted to drink less, coupled with a desire to have premium quality especially in spirits. There was an attitude of 'if I'm going to have just one, then it's going to be exceptional'.
This consumer desire saw the company develop a range of premium products. Johnnie Walker is just one of many great examples. The Johnnie Walker colour range starts with the Red label which costs $NZ49 a bottle and from there the options are almost endless. The colour range includes the more premium quality Blue which you can pick up for $NZ260 a bottle. Then we move onto the Explorers Club Collection, but it doesn’t stop there. Their exclusive blend 'The John Walker' you can pick up for a mere NZ$4600 a bottle. I’ll drink to that.
And it's not just alcohol. The trend also extends to consumer staples. No longer does the milk fridge offer just full cream or light. Shoppers are spoilt for choice as companies such as Anchor and Lewis Road Creamery fight for your dollar with premium brands which claim better taste, better for kids, your bones, you name it.