CONSUMER NEEDS
Premiumisation involves making a product or service appeal to customers, so that they are willing to pay more, by emphasising its superiority and exclusivity. Previously, this would have addressed consumers self-esteem and social status needs, as premiumisation was a method of demonstrating wealth and success with material items. How due to a shift in consumer preferences, premiumisation is now closely linked with health needs.
TREND DRIVERS
The shift in the way consumers view premiumisation is largely driven by the pandemic, as consumers are fearful of the virus and are placing a greater emphasis on health and wellbeing. Data shows consumers are even more health focused as a result of the pandemic, with 78% citing personal health as one of their top three priorities, over other factors such as career success, and 80% placing greatest priority on the health of their family and friends. These priorities come from a place of fear, as 64% and 82% of individuals are concerned for their own or others health respectively. As a result, consumers are seeking premiumisation as a means to become a healthier, better version of their past self; they are willing to pay more for products and services that make them feel safe and healthy. This is important for the fashion industry as non-food categories. clothing and footwear especially, were the categories with the highest decrease in spending, at a decrease of 60% in the UK. This means they need to properly understand how to offer consumers safety and ease their health worries.
CONSUMER EXPECTIONS
As the pandemic continues and consumers continue to experience health anxiety, greater expectations are emerging as consumers expect brands across all industries to promise health and wellbeing as a priority. For the fashion industry, this may require an investment in, and focus on, sportswear and face masks as it is vital to understand customers priorities. Despite the decrease in spending on clothing, sportswear saw a surge in sales in comparison to 2019, showing consumers really are spending on health.
INDUSTRY INSPIRATION
Fashion brands are already taking advantage of these new priorities as a way to offer premiumisation. Luxury fashion house Burberry were the first to launch high end, designer face masks to target those who wanted to be safe and stylish. The face masks are available in both pale blue and beige, and retail for around £90 with 20% going to the COVID-19 community fund.
Another brand who saw an opportunity to link health and premiumisation was Under Armour, who launched a Sports mask, offering protection specifically designed for athletes. The mask costs £26, taking up the middle ground between Burberry’s luxury position and the cheap masks in the market, and will be sold in limited quantities, increasing exclusivity and the premiumisation.
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