Why so? According to our view of the market, the Waisted Rectangle©, premium products are located between luxury products and luxury brand on the one hand and premium economy products and their brands on the other hand. In principal, they are positioned just as unfortunate as the old, today no longer existing center of the market used to be.

The enlightened consumer belonging to the knowledge society expects from a product and a brand a clear, concise and distinct profile; differentiation from the competition. Quality alone does not suffice, quality is a matter of course. Just as much as availability, assortment, functionality, design, service.

The enlightened consumer expects more. He demands a convincing price/performance ratio from every product and every brand, no matter in which segment of the market it is positioned. And exactly at that point, premium products have a hard time to be convincing.

Far too often the vendors think that a prettier packaging, an artificially created pseudo-exclusivity, an allegedly more creative advertisement, a discernable but not clearly distinct more on details create a nearly-luxury-product for which the consumer would be willing to pay more. That is a mistake.

There is an increasing misuse of the term premium. Many vendors take the easy way out and include the unprotected word premium in their product name and believe that they are now able to claim an exalted positioning.

We suggest to all vendors to strictly reevaluate premium positioning and best to withdraw, either through further development in direction of luxury products or in direction of positioning in the premium economy segment, the segment, which we say holds the best perspectives for the future.

Only one of these two paths keeps the vendors from having to fear for their products during difficult times.

The brand plays a deciding role, because only she can lend personality to the product. The difference between luxury and premium economy products and their brands essentially consists in a more or less of exclusivity. Premium economy products are democratized luxury products. Their brands offer only gradual differences in the immaterial portion of the price. The permanent coming closer is also is a reason for the plight, premium products are being exposed to.

Both, luxury and premium economy products fulfill more a want than a need. The higher the immaterial portion of the price the more exclusive are the product and brand

The consumer satisfies his needs in the economy segment, where the price for the tangible portion of the product and not the brand plays a deciding role. This is why we find private labels and trademarks as kind of a substitution brand primarily in the economy segment.

Who is positioned clearly and does not burden his products and brands with a change between ‘the worlds’ but establishes them on sure ground, will not have to complain about lacking market successes. The disappearance of the center should give the vendors reason for contemplation.