THE TRADING UP PHENOMENON REVEALED
One trend we’re seeing time and time again – can you guess? – is trading up. It affects every avenue of the alcohol beverage industry as premium and super-premium sales shoot through the roof. Why is that, do you think?
What are consumers looking for when they trade up in wine and/or spirits? Will the trading up trend last? Understanding this phenomenon is key. Terms like “quality,” “prestige” and “image” popped up the most in our survey, but here’s a closer look at what you had to say:
“We all trade up. My first car was a vw bug and now I drive an Audi. My first wine was blue nun, now I am one (couldn’t resist). The trade up trend will be with us for a long time, particularly since there is an interest by young wine drinkers. They will get older but they will never want to go back to the bottom.”
“Consumers are looking to expand their own personal "taste" portfolio. It will always be present in the wine business but will ebb and flow.”
“Image...this will maintain as long as the economy does.”
“Barring economic downturn, it'll continue. When you can buy prestige for $2 a glass, why would you not do so? Marginal utility has gone way up for those dollars in consumers’ minds, and you'd have to redefine everything or shake the budget to have change.”
“Trading up is The American Way.”
“Something that isn't readily available to the masses. If it is hip or rare and friends see them consuming a "hot" or boutique item, it will create a buzz. In this region, like in Asia, it's all about "face".”
“I believe that the trade up is here to stay --- but what is trade up?? There are many brands that are out there, that are premium tasting goods at very good prices --- rums for examples, many rums are premium tasting products and produced with fine qualities, but they do not spend millions on advertising.”
“Trading up will continue to grow as more and more gen x'ers mature and want to show their "status" by drinking more expensive brands. Consumers are looking for packing, taste, and status appeal. For example, who is drinking this, is it hot in NYC or LA, what is the brand image of this product, etc.”
“Consumers either want approval of peers or the self-satisfaction of drinking a better product (at least a perceived better product).”
“Consumers are trading up in the on premise locations due to societal pressures. The same person ordering Grey Goose in a club setting is buying Smirnoff for home consumption.”
What are consumers looking for when they trade up in wine and/or spirits? Will the trading up trend last? Understanding this phenomenon is key. Terms like “quality,” “prestige” and “image” popped up the most in our survey, but here’s a closer look at what you had to say:
“We all trade up. My first car was a vw bug and now I drive an Audi. My first wine was blue nun, now I am one (couldn’t resist). The trade up trend will be with us for a long time, particularly since there is an interest by young wine drinkers. They will get older but they will never want to go back to the bottom.”
“Consumers are looking to expand their own personal "taste" portfolio. It will always be present in the wine business but will ebb and flow.”
“Image...this will maintain as long as the economy does.”
“Barring economic downturn, it'll continue. When you can buy prestige for $2 a glass, why would you not do so? Marginal utility has gone way up for those dollars in consumers’ minds, and you'd have to redefine everything or shake the budget to have change.”
“Trading up is The American Way.”
“Something that isn't readily available to the masses. If it is hip or rare and friends see them consuming a "hot" or boutique item, it will create a buzz. In this region, like in Asia, it's all about "face".”
“I believe that the trade up is here to stay --- but what is trade up?? There are many brands that are out there, that are premium tasting goods at very good prices --- rums for examples, many rums are premium tasting products and produced with fine qualities, but they do not spend millions on advertising.”
“Trading up will continue to grow as more and more gen x'ers mature and want to show their "status" by drinking more expensive brands. Consumers are looking for packing, taste, and status appeal. For example, who is drinking this, is it hot in NYC or LA, what is the brand image of this product, etc.”
“Consumers either want approval of peers or the self-satisfaction of drinking a better product (at least a perceived better product).”
“Consumers are trading up in the on premise locations due to societal pressures. The same person ordering Grey Goose in a club setting is buying Smirnoff for home consumption.”
posted at 1:08 PM
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