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Strategy Briefing
Premiumisation and Automotive: The Path to Top-line Growth
34 pages, Dec 2017
US$1,325Added to Cart
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About This Report
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Demand for premium products and services is not new. While traditional status symbols still apply, emerging trends such as mass personalisation and a growing quest for time are shifting consumers’ preferences. Several non-automotive players exemplify these trends, and understanding the why behind their success can help automotive companies redefine themselves in unprecedented times of change.
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Overview
Why buy this report?
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.
A growing quest for automotive options
Consumers can spend more on the things that matter to them, while cuttingback – often significantly – on those that do not. Understanding these prioritiesis the difference between commanding a price premium and becoming acommodity. Automakers succeeding at this aspect of premiumisation giveconsumers ample choice over models and trim levels.
Premiumisation is lessabout what we own, moreabout who we are
In the wake of the global financial crisis, with lavish displays of wealth out offashion, consumers are spending more on products that can make them better– healthier, more unique, more efficient, thriftier, etc. This is driving demand forproducts that allow consumers to demonstrate betterment, and services thathelp consumers achieve their goals. Automakers are increasingly highlightinghow their vehicles serve as a means of consumers achieving what they want intheir lives, rather than an end in and of themselves.
Technology is theaccelerator
Whilst technology is giving consumers more options than ever, it is alsocreating more pressure to optimise those choices. Technology drives demandfor premium products while creating new means of selling and finding them.Technology applies to automotive companies in three areas: the sale, thedriving experience, and after-sales service.
Consumers give maximumloyalty and money tocompanies that serve aspartners
In today’s hyper-connected world, consumers are increasingly consumingpublicly. This value-based consumption rests on three principles: aesthetic,ethical, and emotional appeal. Technology gives companies more opportunitiesto develop strong bonds with consumers, but also exposes them to anincreased risk of public scrutiny and backlash.
Explosive growth of newplayers means today’spremium is tomorrow’scommodity
The rise of e-commerce and discounters means any premium product (and itshealthy margin) is now a target for upstart players able to reach a wider cohortof consumers than ever. While the automotive industry has traditionally hadhigh barriers to entry, the rapid advancement of technology has enabledmainstream automakers to more quickly than ever include the features thatonce differentiated premium products.
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Request more informationTable of Contents
Introduction
Premiumisation in Automotive
Scope
Key findings (1)
Key findings (2)
Premiumisation in Action
While premiumisation is not new, its underpinnings have changed
Global consumers increasingly value time, status, and simplicity
Premiumisation in Action: Personalisation
Strong digital purchases amplify opportunities for personalisation
LOLI Beauty ethically sources ingredients but lets consumers personalise
Barilla 3D-printed pasta gives consumers choice over design, ingredients
LOLI and Barilla highlight opportunities for real-time personalisation
Personalisation can easily be enhanced through in-vehicle choices
Premiumisation in Action: The Quest for Time
The quest for time: focus on what we love, outsource the rest
Rise of the robot helpers: real home automation is here
HelloFresh partners with Bosch to integrate meal prep with appliances
Consumers care more about what they are spending their time on
Reducing frustrating activities an opportunity for OEMs to differentiate
Premiumisation in Action: Smart Luxury
Smart luxury becoming increasingly relevant after global financial crisis
Farrow & Ball markets its premium paint products as easy enhancements
Smart luxury balances accessibility with exclusivity
Automakers offering premium touches can tap into pent up demand
Premiumisation in Action: Consuming Publicly
Public consumption is value-based and rests on three main principles
Public corruption backlash impacts luxury Baijiu in China
Emotional ‘humanisation’ builds a premium tier of pet food
Public consumption hinges on emotion and is less black-and-white
Conclusion
Key takeaways
Despite its increasing relevance, premiumisation not a universal answer
Why buy this report?
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.