The Prof G Pod with Scott Galloway No Mercy / No Malice: Scarcity
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Apr 15, 2023 Explore the fascinating world of luxury branding, where Hermes eclipses Nike in market capitalization due to a shift towards quality over awareness. Discover how companies master the art of scarcity to drive demand and maximize profits. Relive heartfelt childhood memories connected to beach outings, body surfing, and family traditions that create lasting emotional ties. Finally, embark on a journey through aviation memories intertwined with immigrant experiences, showcasing the profound mix of nostalgia and identity.
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Artisanship over Awareness
- Hermes' market cap surpasses Nike's despite lower revenue.
- This shift suggests a growing consumer preference for artisanship over awareness-driven brands.
The Power of Scarcity
- Scarcity, whether real or manufactured, is crucial for driving high prices.
- Top brands like MIT, Apple, Hermes, and the U.S. strategically limit supply to increase value.
Profit vs. Luxury
- Scott Galloway's first consulting firm, Profit, prioritized accepting every client.
- His second firm, which focused on luxury brands and scarcity, achieved a much higher sale multiple.