We Study Billionaires - The Investor’s Podcast Network

TIP643: The Luxury Strategy w/ Christian Billinger

96 snips
Jul 12, 2024
Guest
Christian Billinger
In a captivating discussion, Christian Billinger, chairman of Billinger Förvaltnings AB, dives into the intriguing world of luxury branding. He explores how luxury companies like Hermes and LVMH flourish, emphasizing demand creation and the concept of the ‘non-return effect’ that keeps consumers hooked on their indulgent lifestyles. Billinger also contrasts luxury with premium products, revealing unique marketing strategies that prioritize exclusivity. Plus, he breaks down how higher prices can actually boost demand and how luxury brands navigate e-commerce in today's market.
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INSIGHT

Defining Luxury for Investors

  • Define luxury as an investor by considering competitive advantage and return metrics.
  • True luxury businesses offer singular products/experiences, operate ethically, and create their own demand.
INSIGHT

Luxury Product Categories

  • Personal luxury goods like handbags, apparel, jewelry, and watches are the focus of listed luxury companies.
  • The broader luxury market includes fine art, wine, yachts, and experiences but differs for investors.
INSIGHT

Luxury vs. Premium

  • Luxury, unlike premium products, focuses on singularity and identity, not positioning or comparison.
  • Luxury goods evoke emotions and feelings, while premium goods emphasize measurable performance.
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