If you’ve ever wondered where celebrities do their grocery shopping in Los Angeles, the answer is most likely to be Erewhon. Often referred to as a “cult brand” by media outlets like Bloomberg, Erewhon is a luxury chain of organic grocery stores that cater to LA’s elite. Here, US$20 smoothies crafted by Hailey Bieber, Olivia Rodrigo, and Kendall Jenner are just the beginning. The store also sells tote bags that have become status symbols in their own right, and offers an array of supermarket goods priced up to four times higher than what you’d find at Trader Joe’s.
So why are shoppers willing to pay such a premium? The answer lies not just in the quality of the products but in Erewhon’s status as a symbol of exclusivity, much like many high-end fashion brands. In the UK, upscale grocery stores such as Wholefoods, Marks & Spencer and Waitrose play a similar role, offering premium products and sophisticated packaging.
But how do these high-end supermarkets compare to their Asian counterparts? Let’s explore.
Premium supermarkets in Asia
As we shift our focus to Asia, upscale supermarkets offer a diverse range of experiences, reflecting the region’s unique consumer preferences and cultural influences.
Hong Kong’s upscale grocery stores, such as City’super and Marks & Spencer, offer a mix of local delicacies and international brands. City’super, in particular, has earned a reputation for its high-end imported goods and gourmet selection, ranging from truffles to fine wines. The store’s sleek design and exclusive product lines cater to a sophisticated clientele similar to Erewhon’s elite customer base. Here, the luxury shopping experience is underscored by a cosmopolitan flair, combining global and local products to meet the diverse tastes of Hong Kong’s affluent shoppers.
In Shanghai, upscale supermarkets like Ole’ and Sam’s Club represent a blend of modern luxury and traditional values. Ole’ offers an extensive range of premium imported goods alongside high-quality local products. The store is known for its upscale ambiance and a wide selection of gourmet foods that appeal to China’s growing middle and upper classes. Sam’s Club, while more focused on bulk items, still provides a luxury experience with its high-quality offerings and exclusive member benefits, aligning with the trend of premium grocery shopping observed in other global markets.
Seoul’s premium grocery stores, such as Hyundai Department Store’s Food Hall and Lotte Mart Premium, reflect a fusion of high-end and everyday luxury. These stores offer everything from top-tier Korean produce to gourmet international foods. The emphasis is on both quality and accessibility, with a focus on delivering a superior shopping experience without the extreme price tags found in some other luxury grocery segments. This approach offers a more inclusive luxury experience, catering to a broad audience while still maintaining an air of exclusivity.
Standing out as an upscale supermarket in Asia
In the competitive landscape of upscale supermarkets across Asia, standing out requires more than just offering high-quality products. It demands a unique blend of innovation, exclusivity, and customer engagement. In Hong Kong, Eat the Kiwi is a sustainable online grocery store that delivers high-quality ingredients from New Zealand to both customers and restaurants. “We believe that food is more than just sustenance; it is a vital component of a healthy lifestyle that fosters energy, enhances mood, and promotes longevity,” a rep from the brand told BurdaLuxury. “By carefully selecting natural, organic and sustainably produced ingredients, we ensure that the products we offer are not only nutritious but also with limited use of harmful additives and preservatives.”
Besides healthy offerings, exclusivity is also an important element. Thailand’s Food Delite supplies top-notch Italian groceries to the local market in Bangkok. “The demand for premium products in on the rise, so to stand out in this challenging sector you will need to always introduce new and exclusive items – attracting consumers with premium quality goods while paying attention to the packaging,” Laura Burini, the company’s business development manager, told BurdaLuxury. “Consumer interaction has evolved alongside changing habits, with customers now expecting ongoing engagement. To meet these expectations, businesses should offer personalised services and a diverse range of products.”
To stand out as a supermarket in Asia, businesses must therefore blend personalised service with innovative technology and high-quality, exclusive products. This involves offering tailored shopping experiences, integrating online and offline channels seamlessly, and investing in modern store designs that enhance the customer experience. Providing premium, localised product selections and creating engaging in-store features, like live demonstrations and tastings, further attract discerning shoppers. Exceptional customer service, a strong and unique brand identity, and sustainable practices are also crucial in differentiating the supermarket from competitors and building lasting customer loyalty.
Tailoring to the right demographic
Tailoring to the right demographic involves understanding and addressing the specific needs and preferences of your target market through detailed research and personalised strategies. This includes offering products and services that align with the tastes and requirements of your audience, employing targeted marketing to effectively reach and engage them, and adapting your offerings to reflect local cultural preferences. Regularly gathering and analysing customer feedback ensures your approach remains relevant and responsive to their evolving needs, helping to build strong and loyal customer relationships.
For Eat the Kiwi, health-conscious families and individuals are an important demographic. “We do offer seasonal and festive products to foster this sense of tradition and help create occasions for family bonding,” said the rep. “Physical touch and presence are slowly fading in this day and age where social media is becoming more and more prominent. Gathering for family and friends is incredibly important to our emotional well-being.”
Mercato Gourmet, an Italian gourmet marketplace in Hong Kong, has a mix of clientele. “Our clientele primarily consists of Hong Kong locals, with a good percentage of expats too,” chef Patron Gianni explained to BurdaLuxury. “We cater to a diverse demographic range, serving young professionals hosting gatherings, young families, and seniors passionate about authentic Italian cuisine.”
The social status associated with cult supermarket brands
Cult supermarket brands often carry a significant social status due to their exclusivity, high-quality offerings, and distinctive brand identities. These brands create a sense of prestige and belonging by curating unique product selections and maintaining a premium shopping experience. Their appeal is amplified by celebrity endorsements and influencer partnerships, which elevate their status and desirability. Consumers are drawn to these brands not only for the superior products but also for the social cachet they confer, positioning them as symbols of sophistication and trendiness in their communities.
Eat the Kiwi notes that while this is an undeniable factor, it is not the most important one. “We understand that prestige is certainly something that certain end consumers seek, and we believe that it is built by the overall customer experience – from quality of our products, reliable delivery, and use of sustainable packaging, to a professional after sales service that always puts our customers first,” said the rep.
Hong Kong-based Plantin Kaviari delivers high-end ingredients like caviar and truffle, which are popular in fine dining restaurants. “In Hong Kong, it might be more about the brand you buy than the actual place you buy the product in,” the food store’s general manager Mickael Riou told BurdaLuxury. “We have the chance to represent worldwide renowned brands such as Kaviari and Plantin, we do hope our customers feel special when enjoying our products and our service”.
Biltong Chief, a premier online butcher in Hong Kong, acknowledges the importance of social status while shopping. “Shopping at high-end supermarkets particularly in Hong Kong is a marker of affluence and social status,” co-founder Matt Rosslee shared with BurdaLuxury. “We have a decade-long relationship with our butchery and the labourers in South Africa, who still use a very authentic recipe and a traditional approach when cutting, curing and preserving every piece of biltong. In our world though, with a pack of biltong on display in high-end supermarkets in the city, we do resonate most strongly with the ideals of craft over mass, grass before grain, quality over quantity, health not wealth.”
Celebrity-endorsed supermarket chains in Asia
Celebrity endorsements have become a powerful strategy for supermarkets worldwide, leveraging high-profile personalities to boost brand appeal and attract affluent consumers. In Los Angeles, Erewhon has elevated its status through collaborations with celebrities such as Hailey Bieber, Olivia Rodrigo, and Kendall Jenner, turning their US$20 smoothies and exclusive merchandise into symbols of luxury and trendiness. In the UK, Waitrose and Marks & Spencer have used endorsements from well-known chefs like Mary Berry and Heston Blumenthal to enhance their image as purveyors of quality and sophistication. This global trend extends to Asia, where celebrity endorsements are similarly employed to elevate upscale supermarket chains.
However, the connection between celebrity endorsements and supermarkets has also been questioned, as the impact of such campaigns on driving customer traffic remains uncertain. For example, Morrison’s parted ways with Ant & Dec in 2015, and despite their star power, such endorsements have not consistently resulted in increased sales. For Erewhon, however, this celebrity-alignment strategy has clearly worked in their favour as they made US$10.6 million off Hailey Bieber’s Strawberry Skin Glaze smoothie alone this year, according to Fast Company. In 2023, Erewhon, which also boasts many celebrity sightings, earned an estimated US$171.4 million in profit across their 10 locations, adds the source.
Sustainability in premium supermarkets
With many commercial supermarkets overloading their products with plastic and excess packaging, many boutique grocers are going in the opposite direction.
Eat the Kiwi uses recyclable packaging and tries to limit carbon footprint by selecting suppliers who pay attention to renewable energy and animal welfare. “We can definitely see an increasing demand for gluten-free and natural, antibiotic and hormone free products too,” said the rep.
Similarly with Food Delite, stock is kept to a minimum to reduce food wastage, and if they are required to deliver a product by foam box, there is a collect back option. Their next focus is to enhance online presence to support the customer experience. “We will continue to prioritise sustainability and eco-friendly practices, redefining customer engagement through personalised experiences with a focus on customer service and active presence in all relevant channels,” said Burini.
Mercato Gourmet focuses on “selecting produce solely from Italian boutique wineries, small food artisans, and family farms,” said Gianni. “These suppliers share a deep reverence for their land, nurturing it with care.”
Plantin Kaviari’s Riou noted that it’s a must for brands to engage in sustainability these days. “When it comes to the products we source, it is important before partnering with a brand to look into their production methods, traceability data, etc. to make sure they match our standards. We believe each and every one can help, one step at a time,” said Riou.
Matt Rosslee of Biltong Chief highlighted that biltong, a high-protein meat snack, has the potential to become the next superfood. Athletes and diet enthusiasts following CrossFit, Hyrox, Carnivore, Keto, and Paleo diets are increasingly seeking out nutrient-dense foods that are low in additives. Biltong fits this demand perfectly with its rich protein content and minimal additives.
The future of luxury supermarkets in Asia
In Asia, the future of luxury supermarkets looks promising as they continue to evolve and adapt to changing consumer preferences. With a growing emphasis on quality, exclusivity, and personalised experiences, these high-end stores are setting new standards in retail. They are focusing on premium products, sustainable practices, and innovative technology to attract discerning customers.
While Western chains such as M&S have successfully entered the Asian market, gaining a loyal customer base and achieving rapid expansion, boutique brands are also making significant strides. These smaller, niche brands are carving out a strong presence by focusing on specialised offerings that cater to specific consumer preferences. Their success in the market is driven by their ability to provide unique, high-quality products and personalised experiences that resonate with discerning customers. As a result, boutique brands are establishing a robust foothold and continuing to thrive alongside their larger, more mainstream counterparts.
