In the alcohol industry, premiumisation is driving growth (IWSR forecasts premium spirits will grow 5% CAGR through 2027), but if everything claims to be premium, how do brands truly stand out?
Rethinking premium – POSM as a competitive advantage
When every bottle claims to be high-end, what makes consumers choose yours? The answer isn’t inside the bottle – it’s what happens at the point of sale.
“POSM is often overlooked, but it’s where brands have the most influence over purchase decisions,” says Benjamin Van Damme, head of strategy at Merch & Effect. “It’s not about doing more; it’s about creating the right impact.” Merch & Effect is a strategic POSM agency that leverages insights and research to go beyond POSM to craft immersive brand moments that drive choice, not just visibility.
Consider the data:
- 81% of spirits purchase decisions are influenced by in-store marketing (Kantar).
- Branded in-store experiences can boost sales by up to 50% (NielsenIQ).
- Exclusivity-driven POSM increases perceived value by 41% (Harvard Business Review).
POSM isn’t just an accessory – it’s a storytelling tool that restores the prestige trade marketing often misses.
How to beat the luxury paradox with smarter POSM
To signal true luxury at the shelf, the real winners turn POSM from passive branding into active selling.
- Sensory-first displays. “Luxury isn’t just seen; it’s felt,” says Zach Hegde, head of vision at Merch & Effect. “Interactive displays, textured materials, and multi-sensory activations create immersive brand experiences – something a bottle alone can’t achieve.”
- POSM that sells an experience, not just a bottle. Consumers crave more than products – they seek experiences. Turn a simple purchase into an aspirational moment. Merch & Effect often integrates experiential elements to make POSM dynamic, not static.
- Personalisation at the last mile. A Deloitte study found 80% of consumers prefer brands offering personalized experiences. Smart POSM – like engraving stations or QR codes linking to bespoke cocktail recipes – turns a routine shopping trip into a premium, personal experience. “Small personal touches drive emotional connections,” Van Damme notes.
The blind spot
The biggest gap in premium trade marketing? Stopping at product positioning. The brands that thrive extend premiumisation into the in-store experience.
High-growth brands are shifting from traditional campaigns to in-store storytelling. By blending data-driven insights with bold POSM strategies, they don’t just look premium – they feel premium. “We’ve seen brands double conversion rates by treating POSM as a strategic asset, not just décor,” says Hegde.
Trade marketers have perfected storytelling, but surviving the Luxury Paradox requires bringing that story to life – right where it matters most: at the point of purchase. Because if everything is premium, the real winners are those who prove it in the moment of choice.
