In some cases, there is confusion about what each concept represents. Although they are not opposites, they are not equivalent, and they do have differences that are easy to distinguish. Here we will point them out.
A premium brand is technically one of the highest in the traditional market. An example would be BOSS (HUGO) or any other brands that you know. Similarly, various brands of food have launched their respective premium brands, with better flavour and, of course, a higher price. However, these aspects do not give these products such a high exclusivity. They are more expensive, true, but still available to many consumers to be sold in bulk.
A luxury brand is different: it has a great originality, a particular history and the ability to provide status to its consumers, who are part of an elite. Its objective is not to enlarge itself, but to be oriented towards a selective sale.
A premium brand is usually positioned in a particular sector and always observes what the competition does, using tools such as benchmarking. A luxury one, however, focuses on evolving to surpass itself, being a source of inspiration for its followers while maintaining its original qualities.
While a premium brand studies the tastes and needs of its customers to adapt to them, luxury brands do not follow trends, but rather encourage their customers to adapt to their changes.
Regarding production, although a premium brand usually uses quality finishes, it does not choose the most exclusive or extraordinary. On the contrary, the luxury brand does not hesitate to use the best, although it must use very expensive and scarce materials for its products.
Finally, while a premium brand studies the tastes and needs of its customers to adapt to them, luxury brands do not follow trends, but rather encourage their customers to adapt to their changes. Luxury, then, is not within reach of any consumer and has quite a long time in the market. The premium concept, on the other hand, has a wider projection of potential customers and is newly created, so it will be interesting to see how it continues to develop over time.
How many brands do you recognise with these two labels?