The more the merrier, except in luxury

The Daily

While we’re on the topic of luxury, I found an interesting quote about that this morning. It illustrates the difficulties of scaling luxury brands, since they – in a sense – grow weaker with more customers. When designing with scarcity as a variable you are treading a very fine line.

The same principle could be applied to information, which was what I was alluding to here. If everyone has it, it loses some of its value. It creates a disincentive to share broadly, which in itself hinders growth. This could be why perceived digital luxury is so rare. No one is telling you.

Hermès – type community is, in essence, a top-down group that is centrally controlled by the brand and directly linked to the company’s product. Every time one customer buys a product the community grows by one. The problem with those types of communities is that they get weaker as they grow.

(Quote from WWD, found in LeanLuxe)

The Author

Björn Jeffery is a Swedish technology columnist, advisor, and independent analyst based in Malmö, Sweden. He is the technology columnist for Svenska Dagbladet and co-hosts a podcast for the newspaper. He was previously CEO and co-founder of Toca Boca, the kids’ media company that grew to over one billion downloads. Through his advisory practice, Outer Sunset AB, he works with companies on digital strategy, consumer culture, governance, growth, and international expansion.