Lessons from Luxury

While many industries struggle to recover from the pandemic hit, the luxury sector is thriving.

And it’s not just recent years, the luxury sector has always been resilient to economic headwinds.

But, this year, Bernald Arnault, the CEO of LVMH, overtook Elon Musk as the richest person on Earth, with a net worth of $211 Billion according to Forbes’ World’s Billionaires List.

These luxury brands offer valuable lessons.

How do they evolve into generational icons with a loyal customer base?

How do they avoid becoming “out of fashion”, uphold their heritage, and continue to grow?

Exclusivity Grows Business

Consumers purchase luxury goods for status.

Status comes from exclusivity—owning something not accessible to everyone.

And Luxury brands are relentless in creating exclusivity.

Just look at CHANEL:

What Can You Take Away From This?

Want to reach everyone?

Don’t.

You will only be the average in their eyes. Instead, pick the smallest group that can sustain your business. And put all your attention into attracting those people.

Then those people will close the loop and help you scale.

Modern Day Brand Implementation

Sam Parr’s Hampton is a great example of a modern-day brand applying luxury lessons.

So, What Should You Use?

It depends.

On your product. Brand. Marketing. Customer base. Price point.

Some brands like Hampton will use all exclusivity points to build a successful business.

And some brands will only use one or two.

So, here’s a checklist you can use: