Ghalia BOUSTANI. Retail Consultant | Published author | Visiting lecturer

Mass brand premiumisation has emerged as a pivotal trend in recent years, with brands striving to secure higher-value market segments while retaining their broad consumer appeal. This approach enables brands to boost profitability, elevate their image, and sustain growth in fiercely competitive markets. Above all, it serves as a means to enhance their market positioning.

Mass brands are leveraging diverse strategies to deliver premium experiences. For instance, they have enriched their offerings by adding value and improving quality, enabling them to command higher prices. Many brands have also introduced premium product lines, launching new products or sub-brands positioned at elevated price and value levels within their portfolios. Additionally, limited-edition releases, often marketed at justified premium prices, have gained traction.

Collaborations between mass and luxury brands have further fueled this trend. These partnerships not only strengthen a brand’s equity but also empower mass brands to confidently enter aspirational markets and expand their share within them. In response to evolving consumer expectations and a growing emphasis on sustainability, brands are integrating eco-friendly practices and materials into their premium offerings. This alignment with sustainable values enhances their appeal and reinforces their commitment to responsible business practices.

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Significant investments in strategies are made by mass-market brands to support their premiumisation efforts, adopting approaches that elevate both product and brand perception. A key focus lies in enhancing formulations by integrating advanced technologies or high-quality ingredients, exemplified by Unilever’s serum-infused Dove Body Wash. Packaging is equally prioritised, with premium materials and sophisticated designs used to convey an elevated, upscale image. Messaging plays a critical role in justifying higher price points by emphasising product efficacy and tangible benefits. Beyond functionality, storytelling has emerged as a powerful tool, weaving engaging narratives around product origins, unique ingredients, or artisanal craftsmanship to build a deeper emotional connection with consumers. Targeted marketing campaigns further amplify these efforts, spotlighting premium product lines like Ritter Sport’s Nut Selection to ensure they resonate with the intended audience. Within physical retail spaces, aesthetics are meticulously curated to enhance the perceived value of these offerings, a strategy reminiscent of how masstige brands have successfully positioned themselves to straddle luxury and accessibility.

Mass-market brands are increasingly adopting innovative retail formats and experiences to deliver a sense of exclusivity and elevate their premium offerings. Pop-up stores serve as temporary yet exclusive spaces to showcase premium collections, while in-store premium sections dedicate specific areas within existing retail environments to highlight these products. Experiential events, such as product launches, workshops, or masterclasses, allow brands to engage consumers more directly and create memorable interactions. On the digital front, brands are developing online platforms that offer customisation options or exclusive access to premium items, enhancing the consumer experience. Additionally, partnerships with high-end retailers help position premium collections within upscale department stores or boutiques, reinforcing their elevated status. 

Challenges of Premiumisation Strategies:-

1 – Balancing mass appeal and premium positioning: Brands must carefully manage their image to avoid alienating their core customer base.

2 – Competition from established premium brands: Mass brands entering premium segments face strong competition from incumbent players.

3 – Investment requirements: Premiumisation often requires significant investment in product development, marketing, and retail experiences.

4 – Delivering on promises: Premium offerings must meet heightened consumer expectations to justify higher prices.

5 – Profitability concerns: Brands need to ensure that premium lines can be delivered more profitably than their mass-market counterparts.

Managerial Suggestions for Improved Strategy:-

1 – Conduct thorough market research: Understand consumer preferences, willingness to pay, and competitive landscape before embarking on premiumisation.

2 – Focus on brand strength: Prioritise strengthening the brand’s core identity and positioning before attempting to stretch into premium segments.

3 – Develop a clear value proposition: Ensure that premium offerings provide tangible benefits and value to justify higher prices.

4- Invest in employee training: Empower the entire workforce to deliver a premium experience across all touchpoints.

5 – Implement a phased approach: Gradually introduce premium elements to test market response and minimise risks.

6 – Leverage sustainability: Incorporate eco-friendly practices and materials as a key differentiator for premium offerings.

7 – Maintain consistency: Ensure that all aspects of the brand, from product quality to customer service, align with the premium positioning.

8 – Monitor profitability: Continuously assess the financial performance of premium lines to ensure they contribute positively to overall business results.

By carefully considering these challenges and implementing strategic solutions, mass brands can successfully navigate the premiumisation journey and capture higher-value market segments while maintaining their broad appeal.