Michael Taylor, the COO of Retail Services at Advantage Solutions, is responsible for overseeing Daymon, a global Private Brand agency. He notes that consumers are now more educated and savvier than ever before, with the ability to compare prices easily. As a result, consumers have high expectations when it comes to getting the best value for their money, leading them to seek out premium products at affordable prices.
In response to consumer demand, retailers are blurring the lines between traditional tiering strategies like “good, better, best” and incorporating premium product attributes across all tiers. This shift in product positioning has become more common in mainstream and lifestyle tier items, as consumers seek higher quality offerings without breaking the bank. Retailers and brands are leveraging their private brands to innovate and deliver the value and accessibility that shoppers are looking for.
One of the key reasons behind this shift towards premium products is the changing consumer base, particularly younger generations who celebrate diverse cultural influences and enjoy global cuisines. Social media platforms like TikTok and Instagram are fueling interest in premium culinary experiences, leading to unique flavor development and inspiring consumers with meal ideas and cooking instructions. Consumers are seeking unique and bold flavors, with trends like global heat and flavor pairings gaining popularity.
Retailers and brands are responding to consumer demand for premium products by investing in bold, dynamic assortments that excite shoppers with newness and drive trial and impulsivity. By leveraging unique flavor combinations and innovative packaging designs, retailers can create products that appeal to consumers seeking premium experiences while staying within their budgets. Premium flavors and exclusivity can help build consumer loyalty and drive repeat purchases.
Consumers are increasingly looking for products that not only meet their needs but also align with their lifestyles and expectations for quality. Premium functionality, design, and shareability are key factors driving consumer interest in products, with unique packaging, trendy colors, and functionality that justifies the spend all contributing to a positive shopping experience. Brands that incorporate premium form and function across tiers are able to satisfy consumer demands for high-quality products at accessible price points.
As the retail market continues to evolve to meet consumer expectations for premium attributes across all touchpoints, the trend of premiumization is likely to continue. Retailers are optimizing their assortments to cater to premium consumer demand, democratizing premium attributes, and making products and store experiences more accessible. By focusing on strategic growth initiatives that prioritize premium consumer demand, retailers and brands can drive growth and profitability in an ever-changing retail landscape.
