Indian Premium League: Premiumisation picks up pace for large consumer goods companies
consumer goods manufacturers. They have launched more premium products than mass-market ones in the last two years in several categories as per data from companies and market researchers.
Inflation in the last financial year played a key role, said experts, taking a toll on mass-segment sales as prices went up across products while economic stress in the low to middle income groups hasn't eased up much since the pandemic period.
More than 70% of the new products launched by India's largest consumer goods maker Hindustan Unilever in last two years were in the premium segment. Around 65% of all new personal care product launches were in the premium segment for ITC Ltd, doubling the contribution of such products to the division's sales in the last four years to 38%. For the largest biscuit maker Parle Products, around 60-65% of new launches were in the premium segment as compared to 40% pre-Covid.
About 370 new smartphone models priced below ₹12,000 were launched in 2019, dropping to 175 in calendar 2023, according to electronics industry market researcher GfK.
Rise of online platforms
In contrast, launches of new models priced above Rs 20,000 went up from 120 in 2019 to 175 last year. To be sure, several smartphone manufacturers had vacated the sub-Rs 10,000 space during peak inflation in 2022 but made a comeback in this price segment last year.
In terms of absolute numbers, new launches of mass-segment televisions with screens of 43 inches and below continue to rise, but the pace has become slower than for
