premiumization

Meanings

1. 1noununcountablebusiness

   the business strategy of shifting a company's products or services toward higher-priced, higher-quality versions aimed at wealthier buyers.

   Grammar: Used as an uncountable noun: talk about premiumization in general, not 'a premiumization'.

   Patterns

   • the premiumization of something
   • a premiumization strategy
   • drive premiumization

   The beer company's premiumization strategy pushed sales of its craft and imported labels while standard lager volumes fell.

   Analysts say premiumization in the coffee market is behind the growing number of single-origin and specialty roasts on supermarket shelves.

   As incomes rise in the region, premiumization is changing what shoppers expect from everyday products like soap and toothpaste.

2. 2noununcountablebusiness

   the process by which a whole market or category gradually moves toward more expensive, upscale products.

   Grammar: Also uncountable; often used with 'in' to name the market: premiumization in the car market.

   Patterns

   • premiumization in a market
   • the trend toward premiumization
   • premiumization of a category

   Premiumization in the smartphone market means buyers are keeping their devices longer but paying more for each one.

   The airline industry has seen premiumization, with more space given to business-class seats and less to economy.

Common combinations

premiumization strategy

Their premiumization strategy focuses on limited-edition releases and higher-end packaging.

drive premiumization

Rising incomes are driving premiumization in emerging markets.

premiumization trend

The premiumization trend has been strong in spirits and cosmetics.

premiumization of the market

The premiumization of the market has left fewer cheap options for budget shoppers.

Synonyms and how they differ

trading up

An everyday phrase for consumers choosing more expensive goods; premiumization usually describes the business strategy or market trend rather than one shopper's choice.

upscaling

Close in meaning but can also mean increasing the size or quality of something in general, not just moving a brand upmarket.

Opposites

Word family

premium noun

An extra amount paid, or a high-quality version of a product.

premiumize verb

To make a product or brand more upscale; a back-formation used mainly in business writing.

premium adjective

Describing a product positioned as higher quality and more expensive.

Commonly confused: premiumization or premium?

Practice

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Write a sentence using “premiumization”, then check it and compare it with the examples above.

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