Three Minds On Digital Marketing @ Organic

Consumers' desire to trade-up is a key to the rise of a number of mass luxury brands in the last decade.  From Starbucks to Victoria's Secret, retailers have found value in taking an ordinary product and imbuing it with high-end, experiential qualities.

Last month's interview with Chip Conley  has gotten me thinking about a countervailing trend: trading down.  Dunkin' Donuts is in many ways the anti-Starbucks, and not just because the two chains compete head-to-head, particularly in the Northeast.  If Starbucks is a bespoke experience, Dunkin' is unabashedly a fast-food vision of coffee: drive-through, pre-defined servings of milk and sugar, donuts in a baggie.  And customers from across the economic spectrum love the brand.

There's something about a low-end brand that offers a sense of authenticity, particularly among those who feel jaded by traditional advertising.  Hipsters have rallied around Pabst Blue Ribbon as the beer analog to thrift-store clothing- anti-consumer in its consumption.  And you only need to look at recent electoral history to be reminded that working-class cultural elements (jeans, trucks, beer) are still equated with the Real America.  Standard advertising for these products is essentially all about how down-market they are.

It's a mistake to assume that only luxury brands have a self-expressive quality.  For every Endangered Species Chocolate  buyer, there is someone who'll stick with Hershey's, thank you.   

What other examples can you think of consumers trading down?

Misha Cornes