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Premium Brands - UK - October 2017

“Brands considered innovative tend to generate a stronger reputation for being worth paying more for among consumers, suggesting that being noted for innovation can help to add value not only to individual products, but also to the brand as whole. Investing in research and development can be a valuable tool in trying to create differentiation and increased consumer spend, not just for the present, but also for the future too.”
– Richard Hopping, Brand and Household Analyst

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • Brand overview
            • Luxury brands considered exclusive
              • Figure 1: Top ranking of brands by agreement with “Exclusive”, January 2015-August 2017
            • Everyday brands most likely to be seen as quality
              • Figure 2: Top ranking of brands by agreement with “A brand that is consistently high quality”, January 2015-August 2017
            • Innovation appears to be a vital part of building premium connotations
              • Figure 3: Top ranking of brands by agreement with “A brand that is worth paying more for”, January 2015-August 2017
            • The meaning of premium
              • Quality and luxury share attributes
                • Consumers view price, and premium brands, in tiers
                  • Cross-category review
                    • Fashion brands way out in front on exclusivity
                      • FMCG brands appear more able to prove quality
                        • Figure 4: Average agreement with “A brand that is consistently high quality”, “A brand that is worth paying more for” and “Exclusive” across all brands, by sector, January 2015-August 2017
                      • Quality perceptions and adding value proposition far stronger among users
                        • Figure 5: Average agreement with “A brand that is consistently high quality”, “A brand that is worth paying more for” and “Exclusive” across all brands, by users and non-users, January 2015-August 2017
                      • Perception of non-users drives exclusivity
                        • Figure 6: Top ranking of brands by agreement with “Exclusive”, by users and non-users (in favour of non-users), January 2015-August 2017
                      • What we think
                      • Brand Overview – What You Need to Know

                        • Luxury brands considered exclusive
                          • Everyday brands most likely to be seen as quality
                            • Innovation appears to be a vital part of building premium connotations
                            • Brands Considered Exclusive

                              • Luxury brands considered exclusive
                                • Figure 7: Top ranking of brands by agreement with “Exclusive”, January 2015-August 2017
                                • Figure 8: Agreement with “Exclusive”, by agreement with “Expensive”, January 2015-August 2017
                              • Consumers also judge against competing brands
                              • Brands Considered High Quality

                                • Everyday brands most likely to be seen as quality
                                  • Figure 9: Top ranking of brands by agreement with “A brand that is consistently high quality”, January 2015-August 2017
                                • Active interaction tends to influence stronger perception of quality
                                  • Figure 10: Proportion of usage among those aware of the brand, by agreement with “A brand that is consistently high quality”, January 2015-August 2017
                              • Brands Considered Worth Paying More For

                                • Innovation appears to be a vital part of premium connotations
                                  • Figure 11: Top ranking of brands by agreement with “A brand that is worth paying more for”, January 2015-August 2017
                                  • Figure 12: Agreement with “A brand that is innovative” by agreement with “A brand that is worth paying more for”, January 2015-August 2017
                                • Expectations set by a brand can alter perceptions
                                • The Meaning of Premium – What You Need to Know

                                  • Price as an indicator of quality
                                    • Price also a key indicator of luxury
                                      • Consumers view price, and brands, in tiers
                                        • “You get what you pay for” is a divisive concept
                                          • People expect great service no matter the price
                                          • What Does High Quality Mean to Consumers?

                                            • Price as an indicator of quality
                                              • The quality of individual ingredients
                                                  • Figure 13: Premium ingredient product examples, 2017
                                              • What Does Luxury Mean to Consumers?

                                                • Price also a key indicator of luxury
                                                  • Luxury means longevity
                                                    • Quality components constitutes a luxury brand
                                                      • Luxury as a status symbol
                                                      • The Difference between Luxury and Quality

                                                        • Quality and luxury share attributes
                                                          • Consumers view price and premium brands in tiers
                                                            • Luxury is a want rather than a need
                                                              • Artisan production
                                                              • You Get What You Pay For

                                                                • Fact…
                                                                  • …or fiction?
                                                                      • Figure 14: Big on quality, Lidl on price slogan, June 2017
                                                                    • People expect great service no matter the price
                                                                        • Figure 15: Agreement with “A brand that has great customer service”, by agreement with “Exclusive”, January 2015-August 2017
                                                                    • Sector Review – What You Need to Know

                                                                      • Same brands dominate across all premium measures for automotive and travel
                                                                        • Emotional and physical wellbeing influences premium in BPC
                                                                          • Fashion sector has top scoring brands within it
                                                                            • Exclusivity unlikely to be as desirable within everyday financial services
                                                                              • Tech service providers struggle to build reputation for being worth paying more for
                                                                                • Focus on quality ingredients leads to exclusive image for food and drink brands
                                                                                • Automotive

                                                                                  • Division within automotive sector
                                                                                    • Figure 16: Top ranking of brands by agreement with “Exclusive” in the automotive sector, January 2015-August 2017
                                                                                  • AA seen as quality
                                                                                    • Figure 17: Top ranking of brands by agreement with “A brand that is consistently high quality” in the automotive sector, January 2015-August 2017
                                                                                  • Luxury = worth paying more for
                                                                                    • Figure 18: Top ranking of brands by agreement with “A brand that is worth paying more for” in the automotive sector, January 2015-August 2017
                                                                                  • Brands can use technology to push premium connotations
                                                                                  • Beauty and Personal Care

                                                                                    • Fragrance and make-up makes exclusivity more affordable in BPC
                                                                                      • Figure 19: Top ranking of brands by agreement with “Exclusive” in the BPC sector, January 2015-August 2017
                                                                                    • Everyday brands more likely to be seen as quality
                                                                                      • Figure 20: Top ranking of brands by agreement with “A brand that is consistently high quality” in the BPC sector, January 2015-August 2017
                                                                                    • Consumers in a position to judge the value of everyday brands
                                                                                      • Emotional aspect of personal care helps to boost premium connotations
                                                                                        • Figure 21: Oral-B, healthy body healthy mouth, November 2015
                                                                                        • Figure 22: Top ranking of brands by agreement with “A brand that is worth paying more for” in the BPC sector, January 2015-August 2017
                                                                                    • Drink

                                                                                      • Exclusivity and sophistication link evident in drinks sector
                                                                                        • Figure 23: Top ranking of brands by agreement with “Exclusive” in the drinks sector, January 2015-August 2017
                                                                                      • Brand leaders on the basis of quality perception
                                                                                        • Figure 24: Top ranking of brands by agreement with “A brand that is consistently high quality” in the drinks sector, January 2015-August 2017
                                                                                      • Ingredients may help promote premium credentials
                                                                                        • Figure 25: Top ranking of brands by agreement with “A brand that is worth paying more for” in the drinks sector, January 2015-August 2017
                                                                                      • Bottled water may need to look outside product to premiumise
                                                                                      • Fashion

                                                                                        • Fashion sector screams exclusivity
                                                                                          • Figure 26: Top ranking of brands by agreement with “Exclusive” in the fashion sector, January 2015-August 2017
                                                                                        • Quality of Nike and adidas is notable
                                                                                          • Figure 27: Top ranking of brands by agreement with “A brand that is consistently high quality” in the fashion sector, January 2015-August 2017
                                                                                        • Fashion integration into sportswear influences market
                                                                                          • Figure 28: Top ranking of brands by agreement with “A brand that is worth paying more for” in the fashion sector, January 2015-August 2017
                                                                                      • Financial Services

                                                                                        • Amex stands out in the financial services sector
                                                                                          • Figure 29: Top ranking of brands by agreement with “Exclusive” in the financial services sector, January 2015-August 2017
                                                                                        • Exclusivity unlikely to be as desirable within everyday financial services
                                                                                          • Background position of financial services influences perceptions
                                                                                            • Figure 30: Top ranking of brands by agreement with “A brand that is consistently high quality” in the financial services sector, January 2015-August 2017
                                                                                          • Expectations means few brands promote premium image
                                                                                            • Figure 31: Top ranking of brands by agreement with “A brand that is worth paying more for” in the financial services sector, January 2015-August 2017
                                                                                        • Food

                                                                                          • Treat-based categories dominate in food
                                                                                            • Figure 32: Hotel Chocolat purity laws, May 2017
                                                                                            • Figure 33: Top ranking of brands by agreement with “Exclusive” in the food sector, January 2015-August 2017
                                                                                          • Quality brands more likely to be brand leaders used frequently
                                                                                            • Figure 34: Top ranking of brands by agreement with “A brand that is consistently high quality” in the food sector, January 2015-August 2017
                                                                                          • Advertising and fairness initiatives can add value
                                                                                            • Figure 35: Top ranking of brands by agreement with “A brand that is worth paying more for” in the food sector, January 2015-August 2017
                                                                                          • Purchase occasion may influence worth paying more for image
                                                                                          • Foodservice

                                                                                            • Burger bars changing perceptions
                                                                                              • Figure 36: Top ranking of brands by agreement with “Exclusive” in the foodservice sector, January 2015-August 2017
                                                                                            • GBK and Byron subvert usual experience/quality pattern
                                                                                              • Figure 37: Top ranking of brands by agreement with “A brand that is consistently high quality” in the foodservice sector, January 2015-August 2017
                                                                                            • Brands judged against competitors
                                                                                              • Figure 38: Top ranking of brands by agreement with “A brand that is worth paying more for” in the foodservice sector, January 2015-August 2017
                                                                                          • Household Care

                                                                                            • Accessibility of household brands means low exclusivity
                                                                                              • Figure 39: Top ranking of brands by agreement with “Exclusive” in the household care sector, January 2015-August 2017
                                                                                            • Different proposition leads to more exclusive image
                                                                                              • Experience and quality go hand-in-hand
                                                                                                • Figure 40: Top ranking of brands by agreement with “A brand that is consistently high quality” in the household care sector, January 2015-August 2017
                                                                                              • Dyson’s innovation drives premium image
                                                                                                • Figure 41: Top ranking of brands by agreement with “A brand that is worth paying more for” in the household care sector, January 2015-August 2017
                                                                                            • Media

                                                                                              • Exclusive media brands portray a certain lifestyle
                                                                                                • Figure 42: Top ranking of brands by agreement with “Exclusive” in the media sector, January 2015-August 2017
                                                                                              • Quality titles justify their name
                                                                                                • Figure 43: Top ranking of brands by agreement with “A brand that is consistently high quality” in the media sector, January 2015-August 2017
                                                                                                • Figure 44: Usage among those aware of the brand, by agreement with “A brand that is consistently high quality”, January 2015-August 2017
                                                                                              • Media brands struggle to turn perception in worth paying more for
                                                                                                • Figure 45: Top ranking of brands by agreement with “A brand that is worth paying more for” in the media sector, January 2015-August 2017
                                                                                            • Retail

                                                                                              • Landmark retailers still viewed in terms of geography
                                                                                                • Figure 46: Top ranking of brands by agreement with “Exclusive” in the retail sector, January 2015-August 2017
                                                                                              • A premium for British stalwarts
                                                                                                • Figure 47: Top ranking of brands by agreement with “A store that is worth paying more for” in the retail sector, January 2015-August 2017
                                                                                            • Technology Products

                                                                                              • Expense and exclusivity go hand-in-hand in technology sector
                                                                                                • Figure 48: Top ranking of brands by agreement with “Exclusive” in the technology products sector, January 2015-August 2017
                                                                                              • Samsung dodges image damage
                                                                                                • Figure 49: Top ranking of brands by agreement with “A brand that is consistently high quality” in the technology products sector, January 2015-August 2017
                                                                                              • Apple uses style to add value
                                                                                                • Figure 50: Top ranking of brands by agreement with “A brand that is worth paying more for” in the technology products sector, January 2015-August 2017
                                                                                            • Technology Service Providers

                                                                                              • Technology service providers lack exclusivity
                                                                                                • Figure 51: Top ranking of brands by agreement with “Exclusive” in the technology service providers sector, January 2015-August 2017
                                                                                              • Content is a driver of quality
                                                                                                • Figure 52: Top ranking of brands by agreement with “A brand that is consistently high quality” in the technology service providers sector, January 2015-August 2017
                                                                                              • Number of options means people can shop around
                                                                                                • Figure 53: Top ranking of brands by agreement with “A brand that is worth paying more for” in the technology service providers sector, January 2015-August 2017
                                                                                            • Travel

                                                                                              • Hilton stands out for exclusivity in the travel sector
                                                                                                • Figure 54: Top ranking of brands by agreement with “Exclusive” in the travel sector, January 2015-August 2017
                                                                                              • Online travel aggregators building reputation for quality
                                                                                                • Figure 55: Top ranking of brands by agreement with “A brand that is consistently high quality” in the travel sector, January 2015-August 2017
                                                                                              • Luxury and full-service travel promote premium connotations
                                                                                                • Figure 56: Top ranking of brands by agreement with “A brand that is worth paying more for” in the travel sector, January 2015-August 2017
                                                                                            • Cross-category Review – What You Need to Know

                                                                                              • Fashion brands way out in front on exclusivity
                                                                                                • Link between usage and quality pronounced in FMCG sectors
                                                                                                  • Exclusivity perception mainly comparable across users and non-users
                                                                                                    • Quality perceptions far stronger among users
                                                                                                      • Creating added value perception among non-users is a tough ask
                                                                                                      • Sector Comparison

                                                                                                        • Fashion brands way out in front on exclusivity
                                                                                                          • Figure 57: Average agreement with “Exclusive” across all brands, by sector, January 2015-August 2017
                                                                                                        • FMCG brands appear able to prove quality
                                                                                                          • Figure 58: Average agreement with “A brand that is consistently high quality” across all brands, by sector, January 2015-August 2017
                                                                                                          • Figure 59: Proportion of usage among those aware of the brand, by agreement with “A brand that is consistently high quality”, in the food, drink, BPC and household care sectors, January 2015-August 2017
                                                                                                        • Fashion’s ability to boost self-esteem is worth a premium
                                                                                                          • Figure 60: Average agreement with “A brand that is worth paying more for” across all brands, by sector, January 2015-August 2017
                                                                                                        • A clean home is a source of pride
                                                                                                          • Financial services struggle to differentiate at a brand level
                                                                                                          • Perception of Exclusivity among Users

                                                                                                            • Exclusivity perception comparable across users and non-users
                                                                                                              • Figure 61: Average agreement with “Exclusive” across all brands, by users and non-users, January 2015-August 2017
                                                                                                            • Users and non-users see similar brands as most exclusive
                                                                                                              • Figure 62: Top ranking of brands by agreement with “Exclusive”, by users and non-users, January 2015-August 2017
                                                                                                            • Perception of non-users drives exclusivity
                                                                                                              • Figure 63: Brands with the largest difference in agreement with “Exclusive” between users and non-users (in favour of non-users), January 2015-August 2017
                                                                                                            • Fashion sector is an anomaly
                                                                                                              • Figure 64: Average agreement with “Exclusive” across all brands, by users and non-users, by sector, January 2015-August 2017
                                                                                                          • Perception of Quality among Users

                                                                                                            • Quality perceptions far stronger among users
                                                                                                              • Figure 65: Average agreement with “A brand that is consistently high quality” across all brands, by users and non-users, January 2015-August 2017
                                                                                                            • Consumers conditioned to see brands as quality
                                                                                                              • Quality among non-users based on reputation and positioning
                                                                                                                • Figure 66: Top ranking of brands by agreement with “A brand that is consistently high quality”, by users and non-users, January 2015-August 2017
                                                                                                              • FMCG representation shows importance of experience in these categories
                                                                                                                • Figure 67: Brands with the largest difference in agreement with “A brand that is consistently high quality” between users and non-users (in favour of users), January 2015-August 2017
                                                                                                              • Food brands particularly favoured among users
                                                                                                                • Figure 68: Average agreement with “A brand that is consistently high quality” by users and non-users, by sector, January 2015-August 2017
                                                                                                              • Fashion brands can lean on reputation
                                                                                                              • Perception of Worth Paying More for among Users

                                                                                                                • Creating added value perception among non-users is a tough ask
                                                                                                                  • Figure 69: Agreement with “A brand that is worth paying more for” across all brands, by users and non-users, January 2015-August 2017
                                                                                                                • Rolex and Dyson particularly outstanding
                                                                                                                  • Figure 70: Top ranking of brands by agreement with “A brand that is worth paying more for”, by users and non-users, January 2015-August 2017
                                                                                                                • Different brands between users and non-users
                                                                                                                  • Ocado and Lush have a lot to gain
                                                                                                                    • Figure 71: Brands with the largest difference in agreement with “A brand that is worth paying more for” between users and non-users, in favour of users, January 2015-August 2017
                                                                                                                  • Fashion and BPC stands out for added value
                                                                                                                    • Figure 72: Average agreement with “A brand that is worth paying more for” by users and non-users, by sector, January 2015-August 2017
                                                                                                                • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                    • Abbreviations
                                                                                                                    • Appendix – Brands Covered

                                                                                                                      Companies Covered

                                                                                                                      To learn more about the companies covered in this report please contact us.

                                                                                                                      Premium Brands - UK - October 2017

                                                                                                                      US $2,648.76 (Excl.Tax)