Adapting premium FMCG strategies to luxury brands

Abstract

Fast moving consumer goods (FMCG) producers develop and adapt marketing and supply chain strategies to move to a more bespoke but high volume market that results in higher revenues and profits, a trend known as premiumisation. This paper analyses this trend, trying to understand how luxury groups can benefit from premium FMCG experiences. We use multiple cases of premium FMCG and luxury companies, and a survey, built from the insights of the cases and answered by 23 luxury experts. Among the conclusions of the analysis is that, while the experts do not perceive premium FMCG as a threat to luxury brands, the latter can profit from the adoption of marketing and supply chain practices of premium FMCG to increase volume and reach new global markets. The marketing practices identified as more promising are channel separation and servitisation; while those of supply chain are network orchestration, Multi-level global organisation, visibility and cooperation.