Thoda achhe wala dikhao: The year Indian shoppers went premium
How premiumisation gathered pace
Premiumisation is a trend that continues from the pandemic times when locked-in affluent people splurged on large TVs and washing machines and expensive food and liquor. But in 2023, the crack in India's consumer demand seemed to widen into a split, as companies struggled to sell low-priced goods while luxury, high-priced items flew off the shelves.
At least the phenomenon came to be perceived as a definite turn in the market in 2023. It developed into a major trend in 2023 when companies wooed the rich consumers to compensate for lower sales and falling margins.
While those at the lower income levels largely remained reluctant to open their purse strings after the pandemic ravaged the economy, the rich splurged on luxury items.
While makers of two-wheelers and FMCG companies hoped for a demand revival in rural India, the luxury goods market witnessed high sales, with India's rich splurging on expensive cars, homes, watches, etc.
Customers at the lower end, whose incomes took a beating during the pandemic, were further weighed down by inflation while the rich, who could not spend during the pandemic, indulged in revenge shopping.
From premium packs to ultra-luxury homes
FMCG consumers had started uptrading right in the beginning of the year 2023. Changes in price-pack contributions across six key categories in the March quarter of 2023 showed more consumers up-traded to high-value packs as compared to the same quarter of the previous year, TOI had reported.
