Premiumization has developed as an excellent way forward for brands to make consumers feel valued and special in the Asia-Pacific (APAC) region as they choose high-value products, says the research analyst GlobalData.
Across the FMCG sector, be it food, or beverages, brands are releasing new premium products along with exclusive offerings that elevate them above the national mass brands and compete as recognized premium products.
With the socio-eco diversification, the purchasing behavior of consumers has totally altered in different countries of the same continent. For instance, 76% of consumers in China typically relish the opportunity to consume the highest-quality food & drink, often justifying a higher price point.
Shagun Sachdeva, a consumer insights analyst at GlobalData, says: “Asia-Pacific region has huge potential for growth due to population growth, rapid urbanization and rising disposable incomes in its emerging economies. High on the list of consumer preferences are high-quality products with a luxurious feel and the products that offer greater convenience. The consumers also prefer to have products that pass stringent safety standards and are produced with environmentally sustainable practices.
Adapting to the changing demands and values of today’s modern shoppers, brands have realized the need to upgrade to premium offerings. Manufacturers have their eyes set on the premium market and targeting the middle-to-high income segment through a host of value-adds to lure people to upgrade.”
Sachdeva concludes: “While premiumization is not a new trend to be seen, what has changed is the motivation behind consumers’ purchasing decisions. Premiumization, at its core, is all about priorities and what matters to the consumers. Brands that are quick to know the consumers’ priorities can capitalize on creating their unique selling positions and [making a] clear difference between commanding a premium and becoming a commodity.”