Luxury vs Premium
Luxury is a necessity that begins where necessity ends - Coco Chanel
A premium product is of exceptional quality, featuring superior materials, craftsmanship, and durability. Luxury products, however, are distinguished by their superior status and desirability rather than by tangible qualities.
For example, Lexus and BMW are considered premium vehicles, while Ferrari is a luxurious one. Though Ferrari isn’t necessarily better than its counterparts - in many ways, it’s less practical - its perception and brand value allow them to charge a high price tag.