Senior consultant, APAC
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.