Growth opportunities in premium personal care are most apparent in Asia Pacific. In particular, double-digit year-on-year growth has characterized the Chinese and Indian premium personal care market from 2002 to 2007. Though starting from a low base, this is indicative of how the emerging markets can help offset difficulties that are likely to be encountered in the next 12-18 months.
- The first in a series of three sector specific reports designed to help FMCG companies capitalize on consumers' desire to trade up.
- Asia Pacific, Western European and US consumer wealth group data and premium personal care spend data by category and country.
- A comprehensive analysis of how consumers form their perceptions of what constitutes a luxury/ premium proposition.
- NPD analysis and detailed recommendations offering practical strategies based on the trends and insights uncovered throughout the report.
The rise of the so-called global middle class has been a major factor in facilitating trading up (or premiumization) across the globe. From 2002 to 2007, Hong Kong, China, and India witnessed the highest growth in the number of Mass Affluent Individuals. The latter two nations are also showing the most growth in premium personal care products.
Perceptions of what is considered to be a luxury/ premium brand are dependant upon five key factors which make up what Datamonitor refers to as the 'Premium Price Index'. By using this as a reference, personal care manufacturers and retailers can show consumers that their goods represent value for money in more than just price.
Consumers will increasingly ask questions about what brands/ products stand for and how they match their own values. Basing a campaign around a strong ideological belief held by a target audience can be effective in building brand relevance and increasing shoppers' willingness to pay (WTP) a price premium. Packaging plays a large part in this.
To order this report online, go to Opportunities in Premium Personal Care: Trading Up Trends.