This is totally not a joke. We all know that Louis Vuitton is one the most famous fashion houses on this planet with more than 460 stores and outlets in 50 different countries. However, there is a painful fact that can shock any Louis Vuitton lovers. This luxury brand sets its products on fire at the end of every single year. So, why does Louis Vuitton burn unsold bags?
The quality of Louis Vuitton bags
Alright, before talking about the reason for this action, we will take a look at the things that makes Louis Vuitton bags so special. They only use high-standard materials to make the products reach their highest level of quality.
Moreover, LV bags are waterproof and fireproof. They use Canvas for waterproofing and PVC for fireproof. The LV products need to go through a long experiment and testing process before they are launched to the market. This also explains why their bags are so expensive.
This brand not only produces bags but also making other luxury fashion goods, including clothes, shoes, watches, jewelry, accessories, sunglasses, and even fragrances.
The reasons why Louis Vuitton burn unsold bags
You might wonder why they have to put all the remaining merchandise into the fire when they can be used for charity or recycling, right? Now is the time to reveal the truth. We have summed up all into three main reasons for this bizarre practice:
The first reason is that Louis Vuitton doesn’t want to sell them at a lower price. This brand rarely discounts anything. It seems that this is an unbelievable reason but they still do it to maintain their exclusivity.
Another reason given for their move is that it is how Louis Vuitton controls the stock and prevents theft or cheating actions. As we mentioned above, they have many stores around the world. If there is something happens to the unsold items in their warehouse, it will damage this brand’s reputation.
Finally, Louis Vuitton destroys their leftover bags to make up for the loss of sales. In the United States, there is a special law known as the ‘duty drawback’. According to this law, if something is imported into the country after duty having been paid, the duty will be paid back after it is destroyed.
Louis Vuitton bags’ duty rates are extremely high. It is often about 15-25 percent on average. That is why although the total reclaim is not as much as the value loss, it somehow can soften the blow.
It’s also believed that Louis Vuitton only sells unsold items for its employees before destroying them permanently.
What about other luxury brands?
Louis Vuitton is not the only high-end fashion house that uses the destruction principle. Other popular brands like Chanel, Hermès, Burberry have the same thought on this point. They all want to maintain their products’ exclusivity, or simply these labels believe that this drastic action can prevent their precious good from falling into the wrong hands.