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TIP643: The Luxury Strategy w/ Christian Billinger

We Study Billionaires - The Investor’s Podcast Network

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Challenge of Downgrading Consumption and Impact on Consumer Behavior

Consumers find it challenging to downgrade their consumption once they have experienced luxury products due to the perceived high quality and social prestige associated with them. This phenomenon is not limited to traditional luxury businesses but also observed in industries like airlines, where consumers find it hard to return to lower class seats after experiencing business or first class. This behavior makes luxury businesses more robust as high spending consumers are less likely to cut back on luxury spending even during times of financial strain.

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