CC’d: NOTES A TREND AMONG RETAILERS IS TO EXPAND THEIR BASIC BRAND LINE WTH A PREMIUM ONE.
To do this, they are turning to their brands and revamping everything from the packaging details to the colour, taste (if applicable) and shape of the product. While consumers like familiarity when it comes to products they have a preference for, retailers are beginning to offer more variety and cultivate increased brand loyalty by offering unique, original or hard to find items.
And it’s paying off. Retailers and dealers are seeing increased revenues even in today’s crowded marketplace – since they can now charge more for a premium labeled brand that still is still within reach. And, they increase brand loyalty and build cache in the marketplace.
In the end, it is a win-win for both consumers and retailers. Consumers get their higher-end items with palatable price increases while the retailers are getting larger audiences for their brand products and increased margins.
This will require brands to be more relevant, meaningful and innovative as this trend expands in the marketplace. There are three strategies brands should consider:
- Don’t just put on a pretty dress and lipstick… bring value.
- Invest in consumer insights to drive innovation.
- Optimize brand communications so the value is obvious.
- Make sure it’s a tangible increase in value to justify the price.
This will help keep your brand on the leading edge and drive consumer loyalty.