Building a luxury brand isn’t about slapping a high price tag on a product — it’s an art. It’s about creating objects that carry meaning, inspire desire, and make people feel something about themselves when they own them. For founders, mastering this art can lead to long-lasting cultural influence and financial rewards. But it takes more than good design; it demands storytelling, scarcity, and relentless consistency. Let’s unpack how some of the world’s most fascinating tech brands — Apple, Vertu, Bang & Olufsen, and Leica — mastered (or failed to master) the art of luxury, and what lessons you can take as a founder.

Why luxury as a business model matters

Luxury isn’t just “expensive stuff.” It’s a business model built on prestige, identity, craftsmanship, and scarcity. When people buy a luxury product, they’re paying for more than the item itself — they’re buying into a story and a community. That’s why the global luxury market hit nearly €1.5 trillion in 2024. It’s massive, and even in uncertain times, affluent customers continue to seek products that feel timeless and meaningful.

But here’s the catch: the same market can be unforgiving. Analysts have noted that while luxury spending is still strong, today’s consumers are much more cautious and expect real value behind the label. That means if you’re a founder building in this space, you can’t rely on hype alone. You need authenticity, innovation, and consistency — or the market will punish you just as quickly as it celebrates you.

Apple: Turning tech into modern luxury

If there’s one company that has blurred the line between consumer tech and luxury, it’s Apple. According to Interbrand’s Best Global Brands report, Apple has been sitting comfortably at the very top for years, valued in the hundreds of billions. That didn’t happen by chance.

Apple’s approach to product design, marketing, and retail is almost identical to how a luxury fashion house operates. From the smooth, minimal packaging to the carefully choreographed product launches, Apple has created an ecosystem where customers feel proud — even elevated — to be part of the brand. This approach pays off as seen in Apple’s profit margins.

For founders, the Apple playbook boils down to three lessons;

First, design is non-negotiable — luxury products are recognized before they’re explained. Second, control the customer experience at every touchpoint, from the store to the unboxing moment. And third, build an ecosystem that makes your product more valuable over time — think exclusive services, seamless accessories, and updates that make ownership feel like membership in an elite club.

Vertu: A cautionary tale of “bling without value”

Now let’s look at Vertu, the luxury phone brand Nokia launched in the early 2000s. For a while, Vertu was all the rage with celebrities. Phones were made with sapphire crystal screens, exotic leathers, and even gold. Each one came with a concierge service that let you book private jets or hard-to-get dinner reservations at the tap of a button. Read full story as told by The Verge. .

But here’s the problem: beneath all that bling, Vertu phones lagged behind on core technology. While Apple and Samsung were pushing innovation, Vertu devices often felt outdated. Customers eventually saw through the shine, and the brand’s credibility collapsed.

Vertu shows us that in luxury tech, form without function is fatal. If you’re charging five figures for a product, it must deliver an experience worthy of the price — not just look expensive.

Bang & Olufsen: Selling design as much as sound

On the other side of the spectrum is Bang & Olufsen, a Danish audio company, is well known for treating industrial design as central to its identity: clean Scandinavian lines, premium materials (like aluminium, oak, fabric), and minimal aesthetics are everywhere in its products.

Their retail stores (for example the Nexus Flagship in Herning, or the recently renovated flagship in Manila) are built to feel like curated environments where the products live in home-like, design-focused spaces. Their Atelier/Bespoke furniture-matching line shows that appearance and feel are as important as sound for B&O.

Leica: Scarcity, heritage, and emotional ownership

Leica is a textbook example of how to leverage history and scarcity to create desire. The German camera maker has been around for over a century, and its products are celebrated not just for precision engineering but also for cultural significance. Owning a Leica isn’t just about taking photos; it’s about being part of a lineage of great photographers.

That’s why Leica’s revenue hit record highs in 2023/24 — despite cameras being a niche market in the smartphone age.Leica uses limited editions, serial numbers, and collaborations with artists to make each product feel like a collectible. Customers don’t just buy a camera; they feel like they’re becoming custodians of a legacy.

The advantages of building a luxury brand

So why should a founder even consider building in the luxury space?

The first big advantage is pricing power. Apple is the perfect example: its gross margins far surpass the average electronics company, all thanks to its premium positioning. Luxury customers are also far less price-sensitive, which translates into stronger loyalty and repeat business.

Another perk is the resale effect. If your product holds or even gains value on the secondary market, it makes buyers more willing to invest in the first place. Leica cameras and Hermès bags are proof of this principle. Plus, luxury positioning opens doors to premium partnerships, curated retail channels, and media coverage you’d never get as a mid-market brand.

The risks you can’t ignore

But let’s not sugarcoat it — luxury is risky. Consumers are increasingly savvy and can smell inauthenticity from miles away. The industry has already seen pushback against what analysts call “blingflation” — brands hiking prices without adding any real value. When that happens, even loyal customers can turn on you.

Operationally, luxury is expensive to execute. Using rare materials, artisanal processes, and maintaining strict quality control all drive costs way up. Add to that the long-term investments in flagship stores, curated experiences, and brand storytelling, and you’re looking at years before real profitability. Finally, luxury brands are vulnerable to economic shocks. When markets tighten, mass consumers cut back, but even wealthy buyers may scale down ostentatious purchases.

How founders can start building luxury

If you’re serious about building a luxury brand, here’s where to start.

Begin with a product that has real, defensible value — whether that’s superior engineering, rare materials, or a unique service experience. Then, obsess over the sensory details: how it feels, looks, and even sounds the moment someone encounters it.

Design scarcity into your model. Limited runs, serialized editions, or artist collaborations create urgency and desire. Control your distribution carefully; luxury is as much about where it’s sold as what it is.

And most importantly, tell a story that resonates. Apple tells a story of innovation and simplicity, Leica of heritage and artistry, Bang & Olufsen of timeless design, and Vertu — well, Vertu shows us what happens when the story doesn’t match the substance.

Final thoughts

Luxury is not just about selling a product — it’s about building a métier, a craft that defines your brand and can’t be easily copied. Whether that’s Leica’s precision optics, Apple’s end-to-end design, or Bang & Olufsen’s marriage of art and engineering, the métier is what customers buy into.

As a founder, your challenge is to identify that craft, double down on it, and then wrap it in a narrative, an experience, and a sense of scarcity that makes ownership feel special. Done right, luxury brands aren’t just businesses — they’re cultural symbols. And in a world of endless choice, being a cultural symbol is the most valuable asset you can have.

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