Legacy FMCG Brands Embrace Premiumization for a New Era
Traditional FMCG value propositions of low cost and mass distribution no longer guarantee relevance. Younger consumers in markets such as India expect distinctive formats, elevated ingredients and digital-first experiences. Rising disposable incomes, social commerce, quick commerce and the rise of challenger D2C brands are driving legacy companies to reposition core lines toward premium tiers while preserving trust built over decades.
Understanding the Generational Shift
Gen Z and Digital-First Influence
Gen Z and younger millennials prioritize purpose, aesthetics and experiences. They discover products on short video platforms, validate purchases through peer reviews and expect frictionless purchase paths from discovery to delivery. That behavior pushes brands to adopt premium product cues such as provenance labels, sustainable packaging and limited editions, and to meet shoppers where they browse and buy.
Case Studies in Transformation
Examples are instructive. Vaseline introduced focused lip and skincare ranges with differentiated positioning. Maggi expanded into global flavors to capture aspirational snacking moments. Major players including Unilever, Nestl e9, Dabur and Hindustan Unilever have launched premium SKUs, small-batch or specialty variants, and branded D2C channels to respond to niche demand while leveraging their distribution advantage.
Strategies for Modern Relevance in Retail
Beyond Product: Presentation and Channels
Premiumization is about packaging, storytelling and placement as much as formulation. Practical moves include tiered SKUs, premium packaging, influencer-led social drops, subscription offers and partnership with marketplaces for curated shelves. Retail media platforms play a role by enabling targeted sponsored listings, native content, video assets on product pages and quick commerce priority placement to capture intent at the moment of purchase.
The Balance: Trust and Innovation
Legacy brands must reconcile heritage and modernity. Retain core quality assurances while adopting transparent sourcing, measurable claims and contemporary brand language. Use retail media to amplify provenance and purpose at scale, with measurement that ties ad exposure to basket uplift and repeat purchase. The brands that win will be those that pair product premiumization with data-driven retail media strategies to convert digital-native interest into lasting loyalty.
