As Australia’s two-speed recovery gains momentum, the Roy Morgan Research Institute has conducted a national survey of the country’s high-spending premium consumers to identify their favourite brands.
And while it’s been knocked off its No.1 perch from last year’s results, Vintage Cellars has still blitzed the competition by coming in at No.2. American Express jumped two places since last year’s survey to take the number one spot, displacing the liquor retailer.
The Coles Group banner will be hoping to claw back the top position in 2021, as it continues to roll out Vintage Cellars trial concept stores in Victoria, including one in Carlton (above and below).
The new stores are an evolution of the existing Vintage Cellars format, offering customers an enhanced shopping experience, with a better range and a bright and contemporary feel. They also have increased boutique and premium ranging
Coles revealed strong HY21 results earlier this week, with net profit rising 14.5% to $560 million across the group, including 15.1% growth in Coles Liquor.
Roy Morgan taps NEOs as the consumer to watch
According to Roy Morgan CEO Michele Levine, “Our list of premium brands is determined by the proportion of high-value consumers known as NEOs, short for new economic order that each brand enjoys.
“It is common knowledge that the credit card market in in decline, what with debit cards and Buy Now Pay Later brands like Afterpay.
“And while NEOs love BNPL and debit cards more than anyone else, their romance with credit cards continues – particularly American Express which has tapped into the NEO Zeitgeist.
“NEOs are driving the fast lane of the two-speed recovery and are expressing their pent-up demand buying new cars and renovating their nests, so it makes sense therefore that two furniture retailers – Freedom and Ikea – have joined the top-10 list.
“The word ‘premiumisation’ is on the lips of business leaders eyeing off the economic fast lane while, at the same time, the slow lane is becoming even more commoditised. In today’s recovering economy the premium market is thriving.
“This appears confusing until you put a premium lens on our deep data to reveal that while there are 10 million Australian consumers dawdling in the economy’s slow lane, there are 4.7 million premium consumers racing in the fast lane. These NEO consumers are big spenders in any economic cycle – right now, 91 percent of them are in the top third of elective spenders in the economy.
The term premium applies not only to brands and experiences, but also to consumers.
“After exhaustive evaluation by our data scientists, Roy Morgan has selected the NEO consumer typology as our premiumisation data lens,” Michele Levine said.
“Business leaders are now recession-proofing their brands by recognising (a) there is a two-speed recovery, and (b) they can now reach, motivate, and acquire these truly premium consumers as their most valuable customers.”
Australia’s top 10 premium brands
- American Express
- Vintage Cellars (Coles Group)
- Qantas (international)
- Harris Farm Markets
- David Jones