This might come off as a bit of a reverberation to anyone who hears it, but the opulent brand Louis Vuitton actually discard all of their unsold bags by burning them. This brand is actually revered throughout the world by most as a fancy dream. However, this elitist act of theirs might actually be of a shock to their customers as well. The sole reason behind this is to up keep the brand value. As difficult as this may be to believe, they actually employ this quite strategically to replenish their losses and maintain their brand value.
To clarify the matter, we can start off by stating that Louis Vuitton actually want their leftovers destroyed rather than selling them off at reduced rates. This helps in maintaining the brand’s elegant stature. This, however, is not officially confirmed.
The subordinates of the industry have confirmed one fact though: LV organizes a pre-destruction sale among its employees, which actually serves as a slight reminder of whatever magnanimity the brand has. This is effective in quelling thoughts which may refer to the activities as being outright outrageous and anti-charity in nature. LV, however did a good job of tackling the situation with a response, which alluded to their intention behind doing all these being: keeping the prices unaltered and same for all.
But, this doesn’t end here with LV just being elitist for a cause as bizarre as it can get. This is where the economic factors play their part. To cover their losses, LV acts in accordance with a US law, which states that if a product which is imported to the country after paying a tax sum (duty) is destroyed by notifying the customs authorities, the taxable amount is to be returned. Interesting enough, this makes up for most of the losses incurred due to lack of sales, naturally due to the high pricing and tax rates imposed on LV products. Thus, this absurd move on behalf of LV actually serves a more strategic purpose rather than just keeping up the brand elegancy.
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