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Three new rules of premiumization

Phong Huynh

Senior consultant, APAC

Kantar Futures

KimPhong.Huynh@kantarfutures.com

 

 

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.