PremiumIn a post pandemic world, a richer kind of luxury will put product life cycles at centre stage. Using upscale eco-materials, authenticity trackers, and functionality of products will become the new definition of premium. These are the findings of a report by Backslash, the cultural intelligence unit of ad firm TBWA\Worldwide, highlighting key trends likely to emerge in the retail sector.
As climate concerns grow, the leathers and furs that once signalled luxury will be traded for a more ethical look. From carbon-positive cotton to bio-based plastics, eco-friendly materials are defining a new kind of premium. More consumers are saying they would pay more for a product with environmentally friendly packaging pushing brands to innovate accordingly.
The perception of luxury is also changing partially due to a pandemic-driven return to basics. As people learned to cut consumption and embrace the essentials, improved well-being and fulfilling experiences became top priority. The report said that in this new world where personal well- being comes first, old-school status symbols will be replaced with more purposeful purchases. The premium market is expected to get a dose of practicality, high-end basics will become their own form of indulgence.
The businesses that withstand the test of time will be those that feed customer appetite for upscale essentials—delivering high-quality materials, sophisticated design, and most importantly, superior functionality.
“Pandemic has given us the realisation that we need to take care of ourselves. More people have started realising that quality of everyday life matters and they are willing to spend more money on it. Consumers are becoming conscious of their choices and how it impacts the environment. So, being eco-friendly and environment conscious is a good space for brands to be in," said Satish Krishnamurthy, chief strategy officer, TBWA\India.
The report also stated that the future will go beyond shopping destination and will offer a sensory experience to customers as they return to stores in a post pandemic world. As retailers look to compete with the digital world, tapping into the feel-good desires may just be what sets them apart from e-commerce platforms which offer convenience and discounts.
“In India, the whole idea of sensory stores would translate into providing deeply engaging experience while shopping. Decathlon, for instance, is a great example of an experiential store customers sample products, educate themselves and before making a purchase," said Krishnamurthy.
Besides, retailer will look to strengthen consumer relationships by engaging in direct dialogue, pivoting from influencers to educators. The report highlighted that the quintessential wealthy and attractive influencer is facing competition from a new breed of social stars. These are health professionals, educators, and activists gaining fame across platforms—marking a meaningful shift from product sharing to knowledge sharing.
Brands can feed this hunger of consumers to learn by joining forces with educational influencers. For instance, a skin care brand partnering with chemists to break down ingredient benefits or a fitness brand collaborating with coaches to talk about benefits of a fitness routine.
Krishnamurthy said the nature of influencers is changing in India, too, as influencer marketing moves towards smaller towns.
"The growth of micro-influencers (with a following of 5, 000 to 12, 000 followers) is becoming critical for brands. They are far more engaged and have more clout among their followers. Specialist influencers is another trend which is becoming dominant in the country where an influencer becomes an expert in a particular field and is seen as an authoritative voice. This could be food, fashion or entertainment," he added.
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