What is trading up?

Trading up involves adding value to the product.

In practice, the product is equipped with new features that guarantee benefits above the standard to consumers.

Trading up adds to an already existing product line other new products with higher quality and a higher price range.

The importance of trading up

Trading up is based on the belief that every product that costs a lot must be able to satisfy consumer needs.

Furthermore, it bases its strategy on the importance of emotional involvement which brings three different benefits:

• The product is different from others in terms of design, it is flawless and is able to keep the promises made to the consumer;
• The product delivers a functional performance superior to the competition;
• It increases the value of the brand and develops consumer engagement.

Hence, trading up evokes true emotions and ensures that its products are different from all others in style, design, and above all in quality.

Trading down, on the other hand, is the introduction of new products that belong to a lower price range compared to one's own line.

This strategy is used to reduce costs and be able to offer products at more competitive prices.