Louis Vuitton originals fall under what I call a prestige market. Low production with very high quality, catering mainly to wealthy clients. Here, manufacturers are forced to keep production low due to high cost of materials and limited number of skilled labor. The result is that they have a high level of prestige. This allows them to keep their wealthy clients which provides them high profit margins. The denim jean market, in which True Religion jeans compete in, is what I call a margins market. Here, manufacturers are forced by market forces to sell wares at small profit margins. This is due to a large number of manufacturers competing for a finite number of customers. These manufacturers try to keep cost low to increase profit margins without increasing selling price.
Another type of market is the niche market where specialty items like cold weather sheepskin UGG boots are sold. Here, manufacturers have fewer actual competitors. However, the actual market population is also lower, like in cold weather countries only. This market has another aspect, it is seasonal for most countries.