The premiumization opportunity: enhancing Italian SMEs value proposition through three dimensions

Abstract

In a global market increasingly characterized by fragmentation and evolving consumer behaviors, Italian SMEs face the challenge of maintaining competitiveness while capitalizing on emerging opportunities. This thesis explores the potential of "premiumization" as a strategic path for Italian SMEs, particularly in the manufacturing and craftsmanship sector, to elevate their market offerings beyond the confines of luxury. The findings suggest that while direct competition with global luxury conglomerates may be unfeasible, there is significant opportunity for Italian SMEs to carve out a niche in the premium market by leveraging their unique strengths such as craftmanship, quality of products and services and heritage. Through the analysis of different case studies, the thesis proposes a premiumization model tailored to Italian SMEs, emphasizing the importance of three dimensions: storytelling and brand image, unique experiences and active communities.