Why Singaporeans are still paying premiums for top brands today

This is an age old question that has been raised umpteen times, and it shouldn’t surprise many the answers expected.

It has been well documented by marketing research that top brands have discovered how our consumer behaviours and psychology work. These marketing gurus have been using well designed marketing strategies and tools to target our inner desires –

1. For good appearances
2. To be associated with quality and branded products

a. so we would appear to be knowledgeable in picking good products for use
b. to appeal to our egos for the association of social status with the brand’s positioning, the yearning to belong to certain social groups
c. appeal to our pride in showing off

In South Korea, “Get it beauty,” a late-night show that focuses purely on improving appearance with makeup and skincare has been filming the “Blind Test" which is aired on OnStyle, a cable TV channel owned by CJ E&M.

The results of blind tests on products have tremendous impact on product sales, especially those that are ranked first. Top three ranked products could find their products sales double or triple after the results were aired.

One surprising outcomeof the blind tests was the ranking of the less and inexpensive range of products. “Today’s popularity of inexpensive cosmetics brands was triggered and fueled by ‘Get it beauty’, which proved in a series of trials that low-price products can outperform luxury ones."

This finding has indeed placed the spotlight on the luxurious products, which have spent hundreds of thousands and millions on the branding and promotion of the products to position them in the elite class. Henceforth, allowing these products to charge high premiums resulting in huge profits in return.

Now, this ‘Get it beauty’ show has awaken the audience to the fact that perhaps we have been paying unnecessary premiums to the top brands for products that only enhances our egos and pride – the psychological desires.

In Singapore, do you feel that you have been paying higher premiums for top brands simply for the feel good factor that top brands are marketing? Or because you believe you are getting a better quality product?

This certainly posed a genuine question about the premiums that some consumers are willing to fork out in order to satisfy their desires and egos.

How much premium are Singapore consumers willing to pay for the quality benefits that a product is promoting?