Citation
The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands
TL;DR
Luxury derives value from scarcity; scale destroys value
Kapferer and Bastien articulate why luxury brands face natural growth ceilings and how LVMH's strategy works within those limits. Their 'anti-laws of marketing' explain why luxury must limit volume to preserve value.
The book provides the theoretical foundation for understanding why some business models have inherent growth limits that should be embraced rather than fought - and how to build strategy around constraints rather than against them.
Key Findings from Kapferer & Bastien (2012)
- Luxury derives value from scarcity; scale destroys value
- Price increases substitute for volume increases
- Brand acquisition beats brand scaling for luxury conglomerates