It sounds cliche, but for a small but growing number of brands, ‘less is more’ is starting to become a new strategy.Brands like skateboarding icon Supreme are proving that they can cross the divide from 'nice but niche' to become a power brand.In 1994 James Jebbia started Supreme as a skate shop selling custom T Shirts in New York’s Soho district. In 1998, a Japanese businessman took Supreme to Japan, a move that helped turn it into a cult brand.Supreme’s business model is based on ‘scarcity’: Small, weekly merchandise drops with limited inventories that were almost guaranteed to sell out at full price.The brand was committed to producing small but high-quality runs of clothing in the U.S., which gave that coveted authenticity.To manage the sale of its limited products, Supreme began a ‘lottery’ system to determine which customers would be able to buy new products. Supreme literally grants lucky customers the ‘opportunity’ to buy their merchandise.Purchases are limited to one-per-customer, which prevents hoarding and acts as a 'speed bump' for people who buy Supreme merely to flip it (for huge profits) on resale sites.In addition to the exclusivity and high quality, the products are undeniably ‘recognizable’ - a key factor in driving up demand.They also have massive resale value. So much so that people make a living buying Supreme products and reselling them on resale platforms at sky high prices. Now Supreme is a $500 million a year empire, with consumers queuing up to buy merchandise, the world’s leading luxury and cult brands eager to do collaborations - and a $2.1 billion acquisition deal from VF Corp., who purchased the company from private equity firm Carlyle.The Secret SauceInterestingly, customers don't complain about the prices, having to wait in line to shop, or the one-per-customer limit. It's about having something that is eye-catching and unique. But also authentic. And high quality. People will pay higher prices if it's for something they really like.Supreme a brand that understands its customers and goes all out to cater to them. By being focused, it's built brand loyalty that surmounts price.Few brands can resist the tempation to scale. Selling more - even at lower prices - means a bigger business. It's a tough discipline to limit supply - especially in the face of strong demand.Supreme continues to stick to its DNA and the market has rewarded it.Now the ball (or the brand) is in VF Corp's court and analysts are already asking whether a company know for growing mass market brands will be able to maintain Supreme's exclusivity.