Why is the Audi A1 considered a premium compact hatchback?

I've often heard the Audi A1 referred to as a premium compact hatchback, but what does that actually mean? What features and qualities make it stand out in this category?

The Audi A1 is considered a premium compact hatchback due to its high-quality interior materials and advanced technology features, such as virtual cockpit and infotainment system. It also offers a more luxurious driving experience compared to other compact hatchbacks in its class.