Re-Inventing Your Brand For The Premium Market
30 August 2019
Author: Jasmine Waters
You can’t beat facts – and the facts show that the ‘bottom’ of the retail market (such as Primark) is working extremely successfully, matched by the premium end (such as Selfridges), leaving brands in the middle at a bit of a loss. As House of Fraser announces plans to re-invent themselves for the premium market, what are the true costs and benefits of doing so?
Case Study: House of Fraser
Over the next five years, House of Fraser plan to convert 31 of their stores into a premium chain, citing their vision to be ‘a complete re-imagination’, with the brand, along with the majority of the market itself, currently sitting in the mid-market category. Critics of the plan say the company are at risk of losing their current identity, but also accept it is a business that has been in a steady decline for a number of years and is in desperate need of change. There are also questions as to whether existing premium brands would willingly be stocked in the new-and-improved House of Fraser, as they may find it difficult to fit in with established competitors such as Harrods. But can the transition into luxury success been done – with enough worthwhile positives?
Is re-launching worth it?
If we look outside of the fashion industry, one of the greatest recent premium ‘success stories’ comes from American fitness company True Challenge, making a $1 million profit after their brand revamping. They believe their formula for a perfect premium transition includes ditching their previously ambiguous name, gearing their brand message towards their new target clientele, charging according pricing for premium products and kicking their re-launch off with an exclusive live event. The premise of this seems much easier said than done, but their figures certainly speak for themselves. There is clearly a market and type of consumer willing to pay top dollar for a service, regardless of industry. That being said, in order to fully make the most of any gaps in the premium consumer market, revamping a brand cannot be taken lightly – pay close attention to your future consumer’s needs, staying relevant to the premium market itself and maintaining the core foundations of brand identity could ensure the potential risk of any ‘re-imagintations’ will pay off in profit.