Ultimate Luxury

The Ultimate Luxury pattern is targeted at the most affluent clientele. Businesses operating here can differentiate their products or services by offering the highest-quality privileges and services commensurate with the buying capacity of the wealthy market they target: these purchasers seek uniqueness and self-actualisation. The substantial investments required to supply these products and services are compensated for by the high margins used. Thus, the emphasis is on branding, the use of skilled and knowledgeable sales representatives to market products and services, and the frequent hosting of memorable special events for clients. Globally, the market for luxury products is expanding, particularly in China and Russia. Microeconomics discusses the snob effect, which states that expensive timepieces sell better at higher prices. To reach the ultra-affluent, a full re-engineering of the business model is required.

When and how to apply Ultimate Luxury:

You may find yourself tempted to raise your prices. Bear in mind, however, that the market for luxury items is quite tiny. There is significant opportunity in emerging nations to appeal to new millionaires and billionaires with a penchant for luxury.
Well-known companies that use this pattern are Nikki Beach and Dior.

Ultimate Luxury Icon

This Pattern is used by:


Unlock Premium Content

Get full access to 200+ Business Model Analyzes with Premium and discover the full scope!

Sign up for free Icon