Is Premiumisation 2016’s most prominent retail trend?
In the immortal words of Tom Haverford from NBC’s Parks and Recreation, sometimes, you’ve just got to “treat yo-self”. These words immediately sprung to mind upon reading a recent article on Forbes about the rise of what could conceivably be 2016’s biggest retail trend, ‘Premiumisation’. The trend itself refers to bridging the gap between luxury goods and mass market consumption which in turn gives all consumers access to a taste of the high life. While the concept of premiumisation has been around for a couple of decades, Forbes suggests that 2016 has seen the trend embraced by a far broader audience. Below are four different sectors within the retail scene that Forbes has identified as key growth areas for premiumisation.
A new take on the top shelf
The term premiumisation was coined in the 90s following the introduction of mass market premium brands in the 90s, specifically in relation to the launch of top shelf spirits such as Grey Goose vodka and the like. The trend soon filtered through to some of the world’s premium Champagne brands such as Moët & Chandon who decided to embrace the movement in order to reach a broader audience. Today, premiumisation has expanded across a far wider spread of alcoholic beverage lines from premium craft gin to more accessible premium wines. Premium mixers such as Fever Tree and Capi are also making big waves in this area.
Fashion is another area that has benefited exceptionally well from the premiumisation movement, especially in relation to accessories. The idea of purchasing a Chanel handbag or a Louis Vuitton coat may only be in the budget for a select few, whereas a wallet, fragrance, tie or keychain by the same brand still affords the same level of luxury at a fraction of the price.
Beauty on the outside
While the luxury skin care market has long been catering to the female demographic, it’s only been in the last decade or so that the industry has paid a little more attention to the needs of the discerning gentleman. Melbourne skincare brand Aesop is a prime example of an Australian retailer that is catering to this market.
Personalisation becoming the new Premiumisation
Exceptional customer service through personalisation is another trend that Forbes believes will be taking the forefront. The example that Forbes makes reference to is an upmarket venue in Sydney called Cub Club which aims to cater to the needs of affluent business leaders. The exclusive club is restricted to 400 members and focusses on providing a premium service which includes assigning guests with a personal assistant, a full time chef, meeting rooms and even access to an in house tailor. While Cub Club isn’t exactly accessible to the average Joe, a speakeasy bar in Melbourne by the name of The Everleigh has personalisation down to a fine art. Punters only need to name a few attributes of their preferred style of drink (i.e. flavour or liquor of choice) and the exceptional bar staff will create a tailored cocktail suited to their palate.
Revel’s Customer Relationship Management tools can help your business capitalise on the personalisation trend by keeping track of detailed customer information and preferences. This enables you to provide tailored offerings to each of your valued customers. To find out more, give us a buzz on 1800 805 730 or drop us a line on firstname.lastname@example.org.