Table of Contents
Executive Summary
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- The market
- The consumer
- Market for premiumised food and drink remains enormous
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- Figure 1: Premiumised categories, February 2019
- Seeking upgraded and wholesome shopping experiences
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- Figure 2: Purchase channels, February 2019
- The pursuit for better product quality to elevate personal health outplays other factors
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- Figure 3: Reasons for premiumisation, February 2019
- Nutritional value is highly regarded by most
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- Figure 4: Evaluation of premium products, February 2019
- Perceived high nutrient value is prioritised in purchasing
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- Figure 5: Prioritised categories, February 2019
- Majority is enticed by premiumised products’ value
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- Figure 6: Attitudes towards premiumisation, February 2019
- What we think
Issues and Insights
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- Prioritising wellness over other factors in life
- The facts
- The implications
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- Figure 7: Bright Diary’s Momchilovtsi yogurt featuring low sugar low fat ambient type
- Freshness and desirable nutrients appeal to the majority as dietary essential
- The facts
- The implications
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- Figure 8: Le Pur and Bioderma crossover branding
- Engagement through premium shopping experiences to win consumers’ loyalty
- The facts
- The implications
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- Figure 9: Aldi Shanghai’s grand opening
- Figure 10: JD’s private label snacks and nuts
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- Figure 11: Nestlé Japan’s travel memories KitKat vending machine
The Market – What You Need to Know
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- Shopping channels handling fierce competition with diverse positioning
- Advanced technology empowering entrepreneurs to redefine food and drink category
- Innovation serving multiple purposes could win consumers’ hearts
Market Drivers
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- Dynamic competition pushing innovation in retail spaces
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- Figure 12: Vanguard’s boutique supermarket Olé
- Figure 13: RT-Mart’s boutique supermarket RHLavia in Changzhou
- E-commerce enabling premium products to become easily accessible for more users
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- Figure 14: Three Squirrels’ Double 11 order fulfilment centre
- Favourable trade deals increasing product diversity and raising quality standards
Who’s Innovating?
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- Niche brand positioning creating a new sub-category
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- Figure 15: Mengniu’s new product launch ‘tianxin’ marketed as a hangover cure
- Startup attempting to topple market leader through added fun elements
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- Figure 16: Chali’s bagged tea
- Figure 17: Tea Drop’s compressed loose tea leaves
- Intertwined new sensations and convenience gaining popularity
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- Figure 18: Saturnbird’s instant cold brew coffee pots
- Social media sparks crossover branding
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- Figure 19: Rio and Liu shen brand crossover
- Figure 20: Product claims of Bread & Bread Products, Cakes, Pastries & Sweet Goods, Baking Ingredients & Mixes launched 2014-18, China
- Figure 21: Acecook and Pringles crossover product innovation
The Consumer – What You Need to Know
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- Wave of premiumisation is well-received by the population
- Prioritising nutritional value reflects consumers’ pursuit and growing awareness
- Nuances in regional preferences reveal lifestyle and health beliefs
Premiumised Categories
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- Great market potential for chilled items
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- Figure 22: Premiumised categories, February 2019
- Second tier cities benefit from advanced technologies
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- Figure 23: Premiumised categories – selected categories, by city tier, February 2019
- Females pay attention to the overall food and drink market
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- Figure 24: Premiumised categories, by selected demographics, February 2019
- High income consumers and those with kids have stronger urge to upgrade
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- Figure 25: Premiumised categories, by monthly personal income, February 2019
- Figure 26: Premiumised categories, by family structure, February 2019
Purchase Channel
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- Premium-priced products entering mass market
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- Figure 27: Purchase channels, February 2019
- Age and gender impact shopping channel preferences
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- Figure 28: Purchase channels, by age and gender, February 2019
- High income earners use more innovative channels
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- Figure 29: Purchase channels, by monthly personal income, February 2019
Reasons for Premiumisation
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- Shared pursuit of better quality and healthier options
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- Figure 30: Reasons for premiumisation, February 2019
- Socioeconomic status impacts consumption reasoning
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- Figure 31: Reasons for premiumisation, by age groups, February 2019
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- Figure 32: Reasons for premiumisation, choice ranking by age groups, February 2019
- Families with multiple kids value more aspects of premiumisation
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- Figure 33: Reasons for premiumisation, by family structure, February 2019
Evaluation of Premium Products
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- Nutritional value outweighs other factors
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- Figure 34: Evaluation of premium products, February 2019
- Varied premium cues for different cities and regions
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- Figure 35: Evaluation of premium products, by city tiers and regions, February 2019
- Consumers from 80s generation demand more premium cues
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- Figure 36: Evaluation of premium products, by generation, February 2019
Prioritised Categories
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- Unleashing opportunities in ‘freshness’ and ‘nutrients’
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- Figure 37: Prioritised categories, February 2019
- Similar preference throughout different regions reflects a common goal
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- Figure 38: Prioritised categories, by regions, February 2019
Attitudes towards Premiumisation
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- Premiumisation is perceived as inevitable by the majority
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- Figure 39: Attitudes towards premiumisation, February 2019
- Subtle difference in attitude reflects generational gap
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- Figure 40: Attitudes towards premiumisation, by age group, February 2019
- Regional preferences reveal lifestyle and health beliefs
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- Figure 41: Attitudes towards premiumisation, by age group, February 2019
Meet the Mintropolitans
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- MinTs have strong sense of needs when choosing premiumised goods
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- Figure 42: Reasons for premiumisation, by consumer classification, February 2019
- Diverse aspects of product upgrade attract Mintropolitans
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- Figure 43: Evaluation of premium products, by consumer classification, February 2019
- Different preferences in less popular categories reveals nutritional value perception
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- Figure 44: Prioritised categories, by consumer classification, February 2019
Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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