The Growth of Premium Marketing
Euromonitor International's The Growth of Premium Marketing examines how the increasingly affluent and demanding consumer is now a very large spending force at the top end in all developed economies. The picture is the same in consumer markets from food to cosmetics to clothing to consumer electronics. Retailers and suppliers are responding by segmenting their offer and creating premium lines, brands and sub-brands. This report examines the trends in the world's major economies and considers the impact on consumer markets.
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Chapters: 9 | Tables: 22 | Publication date: Aug 2006
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Regional coverage
Western Europe; Eastern Europe; North America; Latin America; Asia-Pacific; Oceania; Africa and the Middle East
Table of contents
1. EXECUTIVE SUMMARY
Key Drivers
Summary 1 Positive and Negative Influences on Premium Marketing 2006
Consumer Market Trends
Chart 1 Sales of Selected Premium/Luxury Products 2001/2006
Chart 2 Selected Premium/Luxury Products as % Total Sector Sales 2006
Retailing Trends
Outlook
Chart 3 Forecast Growth in Selected Premium/Luxury Products 2006-2011
2. INTRODUCTION
Rising standards of living
No clear definitions
The blurring of lines
Super-premium and “uber-premium”
3. SOCIOECONOMIC DRIVERS
3.1 LEVELS OF WEALTH
Average gross income
Consumer confidence also plays a role
Eastern Europe see highest incomes growth
Incomes remain low in emerging markets
Table 1 Average Gross Income by Country 2000-2005
Income by age
Table 2 Average Gross Income by Age Group in Major Markets 2005
Annual household income
Table 3 Number of High-Income Households 2000-2005
Table 4 High-Income Households as % Total 2000-2005
3.2 CHANGING HOUSEHOLD STRUCTURES
Single households
Chart 4 % Single-person Households in Major Markets 2000/2005
Two-person households
Chart 5 % Two-person Households in Major Markets 2000/2005
3.3 WORKING WOMEN
Table 5 Working Women as % Female Population by Country 2000-2005
3.4 LIFESTYLE FACTORS
Status-driven consumers
The rise of the yoga mom
Celebrity worshipping
“Chavs” dent image of premium brands
4. KEY TRENDS AND DEVELOPMENTS
4.1 PACKAGING
Embossing gives image of premium quality
Spirit brands gain distinctive identity through bottle design
Sophisticated materials add value through better protection
4.2 QUALITY STAMPS AND CERTIFICATION
Hallmarking systems in the EU
Organic certification
Fairtrade
Eco-label
4.3 INDULGENCE FOODS
Achieving a balance
Growing sophistication in tastes
Indulgence benefits from more natural image
4.4 BRAND EROSION
Getting the balance right
The rise of masstige
4.5 COUNTERFEITS AND COPYCATS
China leads the way
Megabrands more vulnerable to counterfeiting
Blatant copycats
Identity theft
5. IMPACT ON CONSUMER MARKETS
5.1 FOOD
Case study: Häagen-Dazs
5.2 SOFT DRINKS
Healthier drinks for kids
Bottled water driven by functionality
Pure juice benefits from premium trend
Functional juices with less calories
Increased segmentation
RTD coffees based on coffee bar favourites
Table 6 The Market for Premium Versus Total Juices 2001-2006
5.3 ALCOHOLIC DRINKS
Beer
Table 7 The Market for Premium Versus Total Lager 2001-2006
Wine
Table 8 The Market for Champagne Versus Total Wine 2001-2006
Spirits
5.4 COSMETICS AND TOILETRIES
The masstige movement
Skin care benefits from anti-ageing techniques
Fragrances fuelled by interest from men
Professional women drive demand for premium cosmetics
Celebrity endorsed products aid premium hair care growth
Premium sun care benefits from cancer worries
Bath and shower and baby share less developed
Table 9 Sales of Premium Cosmetics and Toiletries by Sector 2001-2006
Table 10 Premium Cosmetics and Toiletries as a % Total Sales by Sector 2001-2006
6. RETAILING TRENDS
6.1 SUPERMARKETS
Going upmarket
Case study: Waitrose
Premium private labels
Trends in non-food products
Summary 2 Use of Premium Ranges by Selected Food Retailers 2005
6.2 DEPARTMENT STORES
A focus on service
Move towards “open sell” model
Expansion into Asia-Pacific
Use of concessions
6.3 SPECIALIST RETAILERS
Stand-alone stores offer more flexibility for cosmetics brands
Premium food and drinks retailers find niches
The emergence of upmarket boutique chains in the US
6.4 DUTY-FREE
Market closely tied with tourism trends
A showcase for new products
Travellers less price-sensitive
Going it alone
Table 11 Global Duty-Free Market Value by Sector 2001-2006
6.5 HOME SHOPPING AND THE INTERNET
7. PREMIUM OPERATOR STRATEGIES
7.1 ACQUISITIONS
Chocolate manufacturers go upmarket
Wines and spirits companies capitalise on super-premium trend
Brewers follow suit
Summary 3 Key Premium/Super Premium Acquisitions 2002-2006
7.2 REPOSITIONING
Coca-Cola attempts to shed unhealthy image
Spirits companies revamp old brands
Brewers and wine producers ditch economy brands in favour of premium variants
Case study: Diageo
7.3 CREATIVE MARKETING
Appealing to the young
Creating intrigue
Case study: LVMH
7.4 BRAND EXTENSION
8. SHIFTS IN MAJOR MARKETS
8.1 CHINA
Income trends
Table 12 China: % Households by Income Band 2000-2005
Market trends
Chart 6 China: Sales of Relevant Premium Products 2001/2006
8.2 FRANCE
Income trends
Table 13 France: % Households by Income Band 2000-2005
Market trends
Chart 7 France: Sales of Relevant Premium Products 2001/2006
8.3 GERMANY
Income trends
Table 14 Germany: % Households by Income Band 2000-2005
Market trends
Chart 8 Germany: Sales of Relevant Premium Products 2001/2006
8.4 INDIA
Income trends
Table 15 India: % Households by Income Band 2000-2005
Market trends
Chart 9 India: Sales of Relevant Premium Products 2001/2006
8.5 JAPAN
Income trends
Table 16 Japan: % Households by Income Band 2000-2005
Market trends
Chart 10 Japan: Sales of Relevant Premium Products 2001/2006
8.6 UK
Income trends
Table 17 UK: % Households by Income Band 2000-2005
Market trends
Chart 11 UK: Sales of Relevant Premium Products 2001/2006
8.7 US
Income trends
Table 18 US: % Households by Income Band 2000-2005
Market trends
Chart 12 US: Sales of Relevant Premium Products 2001/2006
9. OUTLOOK
9.1 TRENDS TO WATCH
9.2 MARKET FORECASTS
Table 19 Forecast Sales in Relevant Sectors 2006-2011