This month, The Silk Initiative shares with you a number of products that use ‘premiumisation’ as a tool to differentiate themselves from their competitors.
A few months ago, we wrote about our observations about premiumisation in China, and since then, we have continued to see evidence of how both local and international brands are responding to this trend in consumer willingness to spend more for better quality, safer and value-added products. We have grouped the product premiumisation themes that we see into four different categories, each portraying unique characteristics whilst tapping into the premium space. The categories are: packaging, quality, premium by association, and multi-sensory and experiential.
Chinese consumers have become increasingly conscious of what they are putting into their bodies and packaging continues to play a key role in quelling fears about product safety and driving consumer trust. While traditional premium cues are still found in packaging (including specific colour palettes and packaging material), products are increasingly challenged to communicate their quality to consumers through packaging designs.
Quality plays a key role in the communication of premium brands and the concept of ‘craftmanship’ has long brought out strong associations to premiumness. Young Chinese consumers are demanding more authenticity from companies than ever before and brands are rewarded for their ability to tell strong brand stories about their origin, ingredients or manufacturing methods. In a market space where brands gain a competitive advantage through their ability to communicate their specific abilities, passions or distinctiveness, craftmanship and quality continue to play a key role in establishing premium associations.
Premium by association
Food and beverage brands can also communicate their ‘premiumness’ through association, by using celebrity endorsements or special ingredients to set themselves apart from the crowd.
Multi-sensory and experiential
Brands can also use a multi-sensory and experiential approach to communicate premiumness – one way to do this is through retail outlets where consumers can engage with the brand and experience its quality first hand. In this way, brands here are moving beyond traditional premium cues, such as packing, and opting for customisation or technology.
For more content from The Silk Initiative in China, check out our collection here.
© FoodBev Media Ltd 2020