The more the merrier, except in luxury

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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)

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