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Three new rules of premiumization

Phong Huynh

Senior consultant, APAC

Kantar Futures




As the Indonesian middle class continues to emerge, the shape of aspiration and the criteria that drive “premium” choices are evolving.


The days of cash-splashing and status-bragging to assert status are diminishing. Brands that want to convince Indonesian consumers to pay more will increasingly need to strategize around three new rules of premiumization:

·      Adding value to consumers’ lives, for example by emphasizing craftsmanship, quality materials, and durability that will last a lifetime.

·      Beyond the material product, delivering exceptional brand experiences that can be de-coupled from the object being sold, and which immerse the consumer.

·      Helping consumers express their identities, for example by building social or community causes into a brand’s DNA.


Premium brands that apply these rules will put consumers at the heart of what they do, be flexible about their business models, and build powerful stories around their brands.