There are four models by which luxury businesses operate. Rather it be Fashion and accessories, Wine, champagne, and spirits, private aviation, or any of other luxury market. These are the models of use:
- First is a brand that has its own personality and that makes consumers want to pay above and beyond the product's materials or function.
- The second model is when products are assembled by true master craftsmen using materials that command a price tag out of reach for most.
- The third model relies on investments in patents and technology or by closely following how a product is used.
- The fourth business model is when companies tightly control distribution and require consumers to apply in advance to buy their products.
If you're a freelancer/entrepreneur of any kind starting a luxury business these are four models you may want to learn, study, then decide on which may work best for you. Remember, luxury is not the same as the general market, it is a separate market that plays by a different set of rules and ideas. The better you understand the playbook the better you'll do in the business.
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