New Delhi, Dec. 16 -- Premiumisation - the strategy of driving growth by focusing on high-end products within an existing category - has gained momentum over the past few years across several consumer-facing sectors including automobiles, jewellery, and organised retail.

At its core, this reflects a steady rise in per-capita income, which has increased discretionary spending. As a result, consumers are increasingly moving towards more expensive products with stronger brand recall.

While premium products can help companies achieve faster revenue growth, the greater benefit is seen in profitability. Higher realizations and better product mix boost companies' margins, leading to faster bottom-line growth than revenue growth.

This shift in...