Can ‘simplicity’ be premium

One way or another, we’ve looked at simplicity often in our research. On the level of broad cultural tensions, life these days is complex and over-filled for so many people that it’s little wonder ‘the simple life’ can be so appealing and even sound ‘magical’.

But what about simplicity in a product? Does simple also mean ‘cheaper’, and is this bad news for brands? The answer is that it can be – but it doesn’t have to be. Here’s how:

An important change we’ve observed that feeds into this conclusion is around what ‘simple’ means in consumers’ minds in the context of a product.

For the longest time, simplicity was perceived to be all about taking stuff out of a product; hence we saw the power of ‘no artificial additives’ , ‘no added sugar’ and ‘no added perfume’. Skincare brand Simple was a classic early example of this, while more recently we’ve seen the introduction of ‘clean’ beauty brands. But even if the idea of ‘no nasties’ appealed (and still does appeal), we have often noted consumers fearing that the product would also be ‘less than’ in some way – and therefore expecting it to be cheaper. People often equate ‘lots’ with ‘more’, so why would they pay more for, effectively, less? \

We saw this in food, too. Although on one (rational) level, consumers knew that fewer ingredients = less processed = better for us, at the same time they also had the feeling that fewer ingredients = more boring / less tasty = not worth the extra money. So we saw (and still see) the perennial ‘trade off’, when people aiming to be ‘good’ / healthier feel or fear they’re paying for it through missing out on joy. Hence the eternal holy grail of the low calorie, ‘no nasties’ treat that still tastes like heaven (we wish….).

Image by ChayTee

These days, though,  we’re seeing a shift in what ‘simple’ can mean to people, in a way that makes it ‘better’, more differentiated… and worth paying more for:

That shift is away from what has been left or taken OUT, to what goes IN to the product. This could be quality and specificity of the ingredients or components. It could be the attention that has been put into selecting just a few ingredients, or the simple care that has gone into making the thing. It could be the pared-back way of presenting it to the consumer – letting all of the above speak for itself without fanfare and ‘marketing puff’. Indeed, it could be all these things.

This approach has been evident in luxury goods for some time (think Apple and La Mer skincare, for example).  What has changed is that we’re seeing it more, and more in the mainstream. For example:

  • Food brands that may only have 3 ingredients but boy, are they great ingredients and boy did we labour over their selection / growing / cooking
  • Skincare brands that have very few ‘clean’ ingredients but look at how we sourced them and from whom. For example, this is better oil because it’s from this unique plant, or gives better hydration because these simple x molecules are x times smaller

And let’s not forget the magical quality I mentioned earlier. Although ‘simplicity’ implies honesty and straightforwardness, when it really works is when there is a degree of mystique around it.  For example:

  • Heinz Ketchup is made simply, mainly from tomatoes and spices, but the tomatoes are their own special ‘breed’ and the spice combination is a secret recipe, kept in a safe and known to only 2 people in the world
  • Drunk Elephant’s core message is about purity, simplicity and removing the ‘suspicious 6’ skincare ingredients that can be troublesome for skin. But the quirky brand name (which generates intrigue and is perceived to be much more premium than a name conveying simplicity and purity might be) is inspired by the fact that the oil in several of Drunk Elephant’s products comes from an African plant favoured by elephants for the high it gives them.
  • DASH is water sweetened only with ‘wonky fruit’ – which at one time would have been thought ‘sub-standard’ but has been made into a ‘good thing’ (and importantly a premium thing) through an interesting, zeitgeist-surfing back-story

Good storytelling is, of course, often the secret sauce. It’s the stories behind the simple, short list of what goes into something that make them special – and worth paying more for. Our final observation is an answer to the question: just how simple should you make it? And the answer is not too simple:

  • Just as ducks only count their ducklings as ‘one, two, three and a lot’, the magic number in food is often 3. Less, and it may not be enough to be worth paying more for (and come to think of it, I could probably make it myself). More. and people may start wondering what you’ve snuck into it
  • In other categories, like skincare, it’s more complex: too few ingredients = less effective,  but there does come a time when the sheer quantity of ingredients starts to scare people off – unless they can all be explained in layperson’s terms that clearly indicate a skin benefit

As with so many things, it’s about a balance but the golden rule is to avoid coming across as less than’ or ‘not enough’.

So in summary, the 3 key ingredients that will enable you to ‘do simplicity’ in a way that is worth paying for are these:

1.     Make it simple, but not too simple

2.     Focus on what you’re putting IN, not what has been taken or left OUT

3.     Ensure (and tell) a backstory with some mystique or intrigue about it

To hear more or discuss, contact me on maddy@lucidpeople.com or +44 7710 946493