The name Louis Vuitton needs no real introduction.
Hands down, this is one of the most valuable luxury brands in the world today.
Offering handbags, jewelry, leather goods, shoes, trunks, and watches—all adorned with the famous Louis Vuitton “LV” monogram—it is also one of the most recognizable brands in the world.
However, it is also one of the most expensive brands in the world.
Why Is Louis Vuitton So Expensive? (Top 10 Reasons)
Owning a Louis Vuitton product such as a handbag, shoes, or watch, is about far more than simply owning a product.
It’s about investing in a personal piece of luxury.
It’s about the experience, the status, and the respect that comes with it.
Any brand that is as recognizable as Louis Vuitton gets to set its prices without apology.
Because they are a status symbol, brands like Louis Vuitton are instantly able to charge more simply because of who they are and because of who invests in them.
When celebrities all over the world are photographed carrying Louis Vuitton products or wearing items with the prominent “LV” logo, this raises the value of the brand almost instantly and enables the brand to charge more for its products.
Often, without even knowing it, buyers end up paying higher prices on luxury items simply because of the brand name that is attached to the item.
As long as people are willing to pay those prices, the prices will continue to be what they are.
Typically speaking, the general price of a designer handbag, for instance, is as much as 20 times higher than the cost of making the item.
Without a doubt, when it comes to luxury brands, Louis Vuitton is the holy grail, and to own a Louis Vuitton product is a personal privilege and investment.
Louis Vuitton has been legendary in the world of fashion since it was founded in 1854.
Since then, it has only grown stronger in public appeal and opinion.
The name was first created in Paris—appropriately known as the fashion capital of the world—and Louis Vuitton still sits squarely on the fashion throne with no hint of moving any time soon.
As a brand, Louis Vuitton is known for releasing limited editions.
Because of this, there is always a high demand for branded items.
As soon as a new watch is released, for example, loyal customers are notified, and the buying frenzy begins.
Customers know that if they want to own the newest Louis Vuitton item on the market, they must act immediately.
Entire groups online and in person exist to keep fellow Louis Vuitton connoisseurs “in the know” about what’s coming next and what they need to do to score the next high-end item for their collection.
This demand means customers are quicker to make purchases, are willing to pay top dollar, and don’t need much by way of incentive to make it happen.
The anticipation alone drives demand and keeps customers sitting on the edge of their seats for the latest and greatest items.
In simple business terms, high demand and limited supply mean higher pricing, and Louis Vuitton’s customers are willing to pay it.
It’s a not-so-secret secret in the world of high-end design that high-quality goods lose value as soon as too many of them exist on the market.
In the world of luxury goods, there is a careful dance between making too many products and not making enough.
Exclusivity is the secret sauce.
Designers often prefer to create a limited number of products in any given series to give buyers the full exclusivity experience.
Customers want to feel like they are the only ones in the world with a certain product—or at least they want to be the only one in their social circle.
Therefore, once Louis Vuitton reaches a particular sales target for any given item, it suspends production of that item.
Rumors abound about whether or not Louis Vuitton actually destroys any extra products once the sales target is reached.
The bottom line is that for high-end designers like Louis Vuitton, exclusivity sells.
Every person who buys an item under the Louis Vuitton brand receives a unique, handcrafted item, eliminating the possibility for a truly identical model.
In the world of mass production, handbags, shoes, or jewelry look the same for everyone who purchases.
This is not so in the world of luxury brands.
This exclusivity means that the selling margin has to be high on each piece, thus raising the price.
Often, when buyers are looking at high-end products, they are looking to purchase something truly unique, but not just in the sense that each piece is handmade and unable to be copied.
They also want to own something that looks unusual or creative.
Most buyers don’t want to spend a small fortune on a piece that could easily be purchased as a mass-produced item.
Louis Vuitton is always trying to stay ahead of trends, creating the next most-wanted item.
Many fashion trends are actually cheaper replicas of what Louis Vuitton is doing.
If you ever wonder what the future of fashion looks like, watch what Louis Vuitton creates and then wait to see how mass production companies follow suit.
Louis Vuitton has always been brilliant at adapting to the needs of buyers.
As soon as a new product hits the market with competing brands, Louis Vuitton works to create a better, classier version of its own.
Also, the brand is working to reach the younger generations with products that demonstrate the same high quality Louis Vuitton has always been known for.
Louis Vuitton is truly for everyone who can afford it.
Louis Vuitton takes quality so seriously that expert craftsmen undergo a full year of training on how to make any new Louis Vuitton product before being given the opportunity to start crafting.
Working for Louis Vuitton is a once-in-a-lifetime opportunity that is very hard to acquire.
Craftsmen wait an entire lifetime to be chosen as one of the LV workers.
Louis Vuitton hires only the best and most skilled laborers to make their products.
They can’t take the risk that any of their products would be anything less than perfect.
Until 2005, creating a Louis Vuitton bag required the skilled labor of eight days and as many as 30 different high-end craftsmen.
Even now that they are using more technology in their construction, it is still limited and requires mostly hands-on labor.
Because of this, Louis Vuitton has always been synonymous with quality, but all of this comes at a high price.
Despite incredible advancements in technology, Louis Vuitton takes pride in sewing most of its goods with a simple sewing machine.
What continues to set Louis Vuitton apart from its competition is that they demonstrate true workmanship in the age of mass production.
On one hand, Louis Vuitton doesn’t do traditional marketing.
You won’t see Louis Vuitton commercials showing up during the next Super Bowl.
Their marketing strategy is simple.
They continue creating products that are known for being exceptional.
Then they let their own reputation do the marketing for them.
However, this unique marketing strategy isn’t cheap—and it certainly isn’t free.
They continue to invest in clients and celebrities who provide “word of mouth” for them, and they have incredible customer service.
Consistency is also a big part of their marketing strategy.
Their products are typically available exclusively at outlets located in select places.
Louis Vuitton’s logo, the overlapping L and V, is an undisputed symbol of status and wealth.
The material used for Louis Vuitton products is sturdy.
The products are so well-made that damage is rarely reported on any LV items.
In fact, Louis Vuitton was originally created to build travel gear—such as suitcases and trunks—so the company got its start making products from materials that last.
Louis Vuitton works hard to make sure it uses only the best materials that will stand the test of time and handle the wear and tear of life.
Though the LV brand is luxury, it is built to withstand daily life.
A Louis Vuitton bag or wallet, for example, will undergo more than 100 different stages of production and testing before it’s ready to be placed on the retail shelf.
Louis Vuitton products are the essence of durability.
Their coated canvas and high-end leather are made to be easily cleaned and cared for.
While the product may age a little over time, it is remarkable how long-lasting and well-wearing the material remains.
The re-sale value on a Louis Vuitton product is generally very high, further supporting the idea that the product was well-constructed with only the best materials.
Luxury brands like Louis Vuitton often build their products in France and refuse to outsource any of their manufacturing to less costly locations.
Unlike other businesses that are looking to cut corners with cheaper labor or materials, Louis Vuitton insists on using only the best.
This process is what has made its reputation.
Their determination to hire only the best is what continues to set their products apart, but this commitment comes with a price tag.
Over the years, Louis Vuitton has consistently created the most popular and most well-known bags in the world.
Simply put, Louis Vuitton is synonymous with quality.
To own a product with the LV logo is to own something that is well-made.
Their reputation for good quality continues to grow stronger decade after decade.
Louis Vuitton uses only the highest quality materials to construct their products.
The leather used in construction is very expensive.
Owning a Louis Vuitton item is an unapologetic symbol of status.
Louis Vuitton is one of the only brands in the world that never holds sales.
To own a Louis Vuitton is to reach a particular status.
This concept alone will continue to drive Louis Vuitton sales and prices for as long as handbags, jewelry, leather goods, shoes, trunks, and watches remain part of the ideal fashion experience.