Use of the word puremiumu (premium) is not new in Japanese as a marketing term.
Firms such as Meiji Co., Ltd., Prima Meat Packers, Ltd., Morinaga Milk Industry Co., Ltd., Calbee, Inc. and Yamazaki Baking Co., Ltd. have adopted the word for marketing everything from ice cream and sausages to crisps and chilled desserts.
But the term has undergone some evolution of late, with its use to identify products offering superior features or added value growing in popularity.
When the Nikkei Marketing Journal (15 May) surveyed over 100 consumers on an assortment of terms that they felt were most appealing when attached to a product, “premium” took first place with 16.7% of the responses.
This was followed by kin no (gold) with 10.5%; and goku or kiwami (ultimate), with 10%. Rounding off the top 10 were zeitaku (deluxe) at 9.6%; honkaku (authentic) at 8.1%; otona no (adult) at 7.7%; tokusen (special select) at 7.7%; takumi (master or artisan) and roiyaru (royal), both at 6.2%; followed by ricchi (rich) at 4.8%.
According to respondents, premium invokes the image of being higher priced, more tasty, or made of superior ingredients. Some sceptics, meanwhile, said the term is merely used to attract attention to the product, with any claims of superiority being no more than hyperbole.
The Nikkei Marketing Journal also ran an interview with Toshifumi Suzuki, chairman of 7-Eleven Japan, regarding his firm’s strategy vis-à-vis the recent surge of products labelled premium.
“Whether food or apparel, it is human nature to seek items that are slightly better in terms of quality”, he said. “If the product conforms to customers’ preferences, they will not mind paying a little more for it. We have entered an era in which consumers seek more quality”.
In Suzuki’s view, if a customer makes a purchase based on the hypothesis that it will taste better because it costs more, they will be disappointed and won’t buy it again if it does not live up to their expectations. Accordingly, the producer must score a “direct hit”.
“Consumers are always seeking new items”, he said. “In the case of food in particular, the tastier it is, the easier one becomes tired of it. It’s the same with high-class cuisine: eat it every day, and you tire of it. The higher the consumer’s standard of living, the shorter product lifespans tend to be”.
Nonetheless, he added that if everyone jumps onto the premium bandwagon, the trend “can’t be expected to continue for long”. One way to ensure survival in the marketplace is to be able “to offer quality products at regular prices”, he said.