The concept of premiumisation is changing drastically within the Australian market, moving away from price and status to more curated, bespoke and social media-driven purchasing. Consumer attitudes have begun to shift and over a third of Australian respondents look for curated experiences that are tailored to their own taste according to Euromonitor International.
The Australian consumer tends to care less about the product itself and more about how a product makes them feel and if their values align with the brand and product. At its essence, modern-day premiumisation has become about emotions and matching products and experiences to moments that resonate emotionally with consumers.
I buy premium; therefore, I am…
The pressures of shifting economic power, technology, population change, and environmental shifts are continuing to have an impact on what consumers value. Deductively, consumers are looking for non-homogenous, high-quality products that provide a truly meaningful experience.
In addition to this, consumers are deriving meaning from convenience and efficacy more than ever. Ultimately, premiumisation is less about what we own, more about who we are. Accordingly, this pressure is forcing companies to concentrate their efforts on value expansion as opposed to volume growth, which continues to experience decline and will continue over the forecast period.
Time, simplicity and uniqueness are the keys to Aussie’s wallets
From the results of Euromonitor’s 2019 Lifestyle Survey, we can see that Australians derive the most meaning from products and services that save them time, streamline tasks, and offer a unique and personal experience. Ultimately, this has put an onus on key industries to innovate and simplify their product and service offerings to not only remain competitive but to offer a premium edge. This has and will continue to have a particularly strong impact on the beauty, food and drink, home and retailing industries, with key product developments moving towards these key variables.
Premiumisation has ultimately become the backbone to driving value expansion, with companies focusing now more ever on these three key offerings:
