Consumers select «premium» items as a means of validating their status and feeling part of a select community. But now they are looking for the next level of product, as “premium” brands have become the norm, fueling a move towards “super-premium” brands.
A continued rise in demand for “premium” products is expected as more than three billion people, more than 40% of the world’s population, are anticipated to enjoy an increasing level of disposable income. This explosive growth in consumer purchasing power will reshape the economy and drive social transformation, with the middle and upper-middle classes accounting for more than a third of the global economy. In this sense, it is anticipated that the economies of Latin America will grow by 2.2% in 2018 and by 2.6% in 2020.
Rapid expansion of metal cards: This trend of «premium» products has now moved to credit cards, where issuing banks offer a stylish metal card to their select customers as a way to differentiate themselves. In fact, financial institutions began to offer metal credit cards or hybrid versions of them, realizing the impact of prestige products in a market that promises significant potential for expansion. Metal cards have gained notoriety with demand, sometimes outstripping existing stocks. Many issuers have launched metal card programs beginning in the United States and now show strong growth potential internationally, including in Latin America.
Issued by a trusted brand, metal cards convey attributes generally associated with “premium” products, such as high quality, superior design and style. Today, metal credit cards are still in the early stages of adoption.