In today’s evolving marketplace, quality, authenticity, and alignment with consumer values are fast becoming the cornerstones of brand loyalty. As a result, companies are increasingly moving away from cost centric offerings to focus on premium product lines. This shift is not just a trend—it’s a strategic response to changing consumer expectations.
The global luxury goods market is projected to grow from USD 327.5 billion in 2024 to over USD 480 billion by 2033, at a CAGR of 6.6%¹. Driving this growth are Millennials and Gen Z, who now make up 40% of consumers worldwide². These generations are more than willing to pay a premium for products that align with their values—such as quality, sustainability, craftsmanship, and authenticity.
Beyond generational preferences, sustainability is also a key driver behind the shift toward premium. As environmental awareness grows, consumers are increasingly investing in higher-quality products that are built to last. Rather than continually replacing cost-centric, short-lived alternatives, they are opting for durable products that provide long-term value and help reduce waste.
For brands, premium is no longer just about luxury—it’s about purpose. Elevating quality and craftsmanship not only meet rising consumer expectations but also reflects a commitment to sustainability, responsibility, and lasting value.
(Image shown is for illustration purpose only)
Evolving Procurement for a Premium Future
When a brand upgrades its portfolio to premium offerings, the procurement function must evolve accordingly. Traditional cost-centric approaches must be balanced—or even redefined—to focus on total value.
Premium products often entail higher unit costs, but they also deliver greater profit margins due to their perceived value and consumer willingness to invest in quality. In many cases, a higher upfront cost is justified by lower rates of returns, fewer defects, enhanced durability, and a stronger brand reputation.
While cost centric products are not necessarily poor in quality, they tend to compete primarily on price—often limiting innovation, material choices, and longevity. Premium products, on the other hand, prioritize superior materials, advanced engineering, and long-term performance.
Procurement teams must therefore assess suppliers not only on cost and lead time but also on their ability to deliver consistent excellence, support innovation, and align with your brand’s elevated positioning. In this context, KPIs such as supplier quality, reliability, and partnership potential take on greater significance than ever before.
(Image shown is for illustration purpose only)
Making the Shift from Strategy to Execution
Recognizing the need to elevate product lines is only the first step—bringing that vision to life requires seamless alignment across functions, particularly sourcing and manufacturing. For many brands, this transition presents new challenges. Shifting from cost-centric production to premium offerings demands partners who not only understand the intricacies of quality but also possess the capabilities to deliver it consistently and at scale. This is where OSM Group can add real value.
Elevate Your Brand
At OSM Group, we understand what it takes to deliver premium products—because we’ve been helping brands do exactly that for years. Based in Sweden, we are an experienced Original Design Manufacturer (ODM) and trusted global partner in engineered soft goods, consumer and industrial electronics manufacturing.
With production facilities in China and the Philippines, and an R&D hub in Stockholm, we serve clients across Europe, Asia, and North America. Our global footprint ensures both agility and consistency—key factors in maintaining premium standards throughout your supply chain.
Our Expertise: Craftsmanship Meets Innovation
We offer a unique combination of technical precision and refined craftsmanship across a wide range of categories, including:
- Portable Audio e.g. Industrial and Consumer Headphones, ANC Headphones, Bluetooth Speakers, Radio Communication Systems
- Personal Protection e.g. Advanced Hearing Protection Solutions
- Carry Solutions e.g. Travel Case, Carrying Laptop Bag, Backpack
- Travel Cases, Laptop bags, and backpacks
- Gear Protection e.g. Sleeves for Tablets and Laptops, Earbuds Cases
- Specialised Sports Gear e.g. Weighted Training Vests, Hydration Packs and Functional Accessories
System G High Performance Outdoor Waterproof Gear (Photo Credit: System G)
Urbanista Malibu Solar Charging Speaker (Photo Credit: Urbanista)
As the market moves toward premiumization, procurement is no longer about finding the lowest-cost supplier—it’s about choosing the right partner who can help your brand stand out.
Ready to elevate your product lines? Partner with OSM Group to bring your premium vision to life.
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ABOUT OSM Group
OSM Group is a leading Swedish Original Design Manufacture company dedicated to delivering sustainable, innovative, and high-quality products across various sectors, including engineered soft goods and consumer electronics.
With a global workforce of over 1,000 employees, OSM Group operates factories in Dongguan and Huizhou, China, as well as Clark in the Philippines. Headquartered in Hong Kong, the company boasts research and development centers in Stockholm, Huizhou, and Dongguan.
OSM Group’s vision is centered on delighting customers with exceptional sustainable products, empowering them to envision, design, develop, and manufacture products while minimizing the depletion of valuable resources.
Sources:
1. Luxury Goods Market Size is Expected to Reach USD 480.54 Billion by 2033, Growing at a CAGR of 6.6% | Straits Research
2. Five luxury trends to watch in 2025; Gen Z and Millennial consumers: what defines them and what divides them
