Premiumization Went Out the Window with High Inflation Prices

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Back in 2023, on Episode 39: Understanding Premiumization, we talked about how sometimes doing more for your brand can help it stand out. The caveat to doing more for your business is that you may have to spend more on your business, and that can be a problem.

Premiumization did not uniformly decline as inflation rose; rather, it shifted from a broad-based trend to a more selective one, with consumers becoming more discerning about which products they deem worthy of a higher price tag. While some categories saw a pullback, many premium products remained resilient as customers opted for “affordable luxuries” or traded down in other areas to justify spending on higher-quality items.

Tune in to see you dial it back, stay the same, or went bigger during these harder economic times.