Masstige & Super-Premium Consumers: Attitudes & Buying Habits

Published by: Datamonitor

Published: Dec. 7, 2006 - 40 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

METHODOLOGY

ANALYSIS

Rising consumer affluence drives premiumization

Growth in sales of premium products continues but is moving towards maturity

Rising incomes are allowing people to buy better quality products

French consumers are spending their rising income on experiences not goods

Booming economies create significant consumer aspiration

The mass marketing concept is sliding into obsolescence

Consumers realize that quality is now better than quantity

Income complexity has seen consumers alter their behavior to afford better quality goods

Consumers are rewarding themselves and living for today

The hourglass economy is squeezing the middle market

Income is no longer a linear indication of purchase behavior

The impact of socio-economic factors means that premium product growth is not universally high across Europe and the US

Macro economic factors constrain premiumization

Economic stagnation and consumer attitudes are limiting the growth of premium products in Germany

Dutch consumers have been shunning premium products due to a slow economy

Unemployment acts as a financial and emotional barrier to trading-up

Premiumization is slow in egalitarian societies

National character affects premium purchases

French consumers are justifiably known for liking the better things in life

Italian consumers love the good life but are feeling constrained

German consumers shy away from premium indulgence and conspicuous consumption

Modest consumers in The Netherlands value substance over style

Ingrained modesty limits premiumization in Sweden

Spanish consumers are becoming more aspirational as the economy booms

UK consumers are moving into a post-materialist phase with regards to purchasing

US consumers want inspiring, new experiences

Health concerns are a major factor in premium goods consumption

Consumers are willing to pay more for health benefits

Volume driven selling limits long-term profitability and has implications for consumer health

More quality, less quantity is the new mantra (with positive health benefits)

Moderate consumption of premium spirits can reduce binge-drinking concerns

Wine is soaring on the back of fine dining and health perceptions (but not everywhere)

Cocooning is driving premium consumption in the home

Consumers are bringing professional quality home

Entertaining at home is still important for consumers

In many countries homes are partly seen as property investments

Home-owners' dual attachment to their homes is aiding cocooning

Mature consumers are the key premium target group

Baby Boomers have huge spending power and are very demanding

Mature consumers are now more active and more open to change

Seniors consumers are attracted to strong and complex flavors

The meaning of 'premium' risks being eroded

The premium label risks becoming devalued

Premium products exist in a profusion of categories

Familiarity and the passing of time erodes the premium proposition

Premiumization is a bar that is being constantly raised

Conclusions

ACTIONS

Make quality central to all premium products

Quality of ingredients is a must

Geographical provenance is a key opportunity

Convenience and thorough cleansing is a key opportunity in household products

Act on the emerging consumer trends that have potential greatest longevity

Successfully stride the health/indulgence divide

Continually innovate to avoid brand erosion of premium brand values

Think beyond line and brand extensions

New channels must be explored and leveraged

Make image a key focus of marketing

Play to people's changing aspirations

Reinforce brand values with quality packaging

Target consumers with relevant products

Conclusions

APPENDIX

Definitions

Methodology

Further reading

Ask the analyst

List of Tables

Table 1: Specialty products market value (US$ m), US & Europe, 2001-2011

Table 2: Specialty food and drinks market value (US$ m), US & Europe, 2001-2011

Table 3: Specialty personal care market value (US$ m), US & Europe, 2001-2011

Table 4: GDP per capita (US$ m) by country, US & Europe, 2001-2011

Table 5: % Unemployment among under 25 population, US & Europe, 2001-2006

Table 6: Gini coefficient, US & Europe, 2004

Table 7: Behavioralized attitudes to healthy eating and drinking, US & Europe, 2006

Table 8: Behavioralized attitudes to organic food and drink buying, US & Europe, 2006

Table 9: Behavior attitudes to alcohol consumption, US & Europe, 2006

Table 10: Behavioralized attitudes to entertaining at home, US & Europe, 2006

Table 11: Changes in behavioralized attitudes to entertaining at home, US & Europe, 2004-2006

Table 12: Consumers reasons for disliking selected household chores, Europe and US, 2006

Table 13: Definitions of terms

List of Figures

Figure 1: Consumers are seeking professional quality in more of their consumption occasions

Figure 2: Many Seniors' are a perfect fit for premium products

Figure 3: Seniors are open to trying new experiences

Figure 4: Shortened product life cycles are demanding more product innovation

Figure 6: Quality of ingredients is a must and should be used as a key selling point

Figure 6: Single origin products and ingredients are a growing trend

Figure 7: Straddling the health/indulgence divide is a key opportunity in all consumer markets

Figure 8: Many different approaches are available for brand extensions

Figure 9: Branded distribution has the potential to preserve premium brand values

Figure 10: Incorporating consumer-driven content is a key opportunity

Figure 11: Godiva's diverse ranges are defined by their distinctive packaging

Abstract

• Detailed country-by-country analysis and insights into the differences in trading-up behaviors and attitudes by region
• Quantitative data outlining the current and future value of the specialty product market segments across food and drink and personal care
• Quantitative and qualitative data on the key socio-economic factors contributing to premiumization
• Detailed action points offering practical strategies based on the trends and insights analyzed in the report

• Gain detailed consumer insight into the attitudes driving the consumption of premium-priced products.
• Improve your marketing strategy by targeting the most profitable consumers and understand their purchase motivations.
• Understand the different drivers of premium product purchase by region and how you can best exploit the differences from one country to another.

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