Despite a more stable 2025, inflation and cost-of-living concerns still shape consumer behavior. In Western Europe, affordability tops the list of brand choice drivers.
Nevertheless, premium T&D products maintain their market position, accounting for a quarter of value sales and showing slight growth. But consumers demand more than just durability or design—they want layered value: convenience, quality, aesthetics, and performance.
The definition of “premium” is evolving
Once a symbol of status, it now signals functionality and trust. European consumers associate premium with superior performance, high quality, and reputable brands. Surprisingly, price is the least important factor—premium must earn its tag through substance.
Consumers are willing to pay more for products that deliver unique features and proven performance. Social status and trend-following play minor roles; quality is the core motivator.
On the brand front, medium and smaller players are driving premium growth, while the top 10 brands see a decline in value sales. On a category level, Information Technology and Small Domestic Appliances are contributing the most to growth. Furthermore, they’re the only categories to achieve unit sales growth. Overall, T&D Premium exhibits unit sales decline. Diving deeper into the categories, Headsets, Vacuum Cleaners, and Mobile Computing emerge as particularly strong, whereas Smart Mobile-Phones is the top drainer in Premium.
However, what consumers say doesn’t always match what they do. While many claim to typically purchase Premium in Smartphones / Tablets and TV & Audio systems, the proportion of Premium products sold in those categories remains comparatively low. Conversely, the Small Domestic Appliances is the second-biggest category committing to growth despite lower consumer self-reporting.
So, how can brands win in premium?
Justify the price. Consumers expect differentiation—whether through performance, design, or innovation. 40% are willing to pay more for unique features, but expectations rise with price. Deliver what you promise.
Design matters. Premium cues include simplicity, refined lines, color options, quality materials, and sustainability. Marketing and post-sales support (like omnichannel service and value-added offerings) reinforce the premium image.
What does this mean for T&D players?
Premium still has a place in consumers’ homes—if it delivers. Understand what “premium” means to your audience and build products that reflect those values. Quality, performance, and thoughtful design must align with the price tag.
Finally, activate your brand with compelling storytelling and customer-centric experiences. When done right, premium earns not just a purchase—but loyalty.
Consumers are still tuned into premium—but on a new frequency. Today, it’s about blending durability with design, and quality with convenience. Brands that listen and adapt will find plenty of room to trade consumers up.
