I’m sure you all must be shocked and are eager to know whether this is actually true or not. But let me just confirm that; Yes, Louis Vuitton burns all its unsold bags every year.
The reason behind burning their bags is that Louis Vuitton doesn’t want to put their bags on a lower price. So, to maintain its exclusivity and avoid selling them on a lower price, they set it on fire!
Another reason of burning the bags is that as we know, Louis Vuitton’s act is a US law called the ‘duty drawback’ and according to this law, if something is imported in the country after paying its duty, it is destroyed with customs’ notification, the duty is paid back. And since LV bags have extremely high duty rates, which is 15-25% on an average, it’s a great way to make up for the loss of sales.
I mean why burn? Just gift it to someone.
But wait no one from LV has ever come forward to confirm the news of burning their unsold bags. Industry insiders say that before destroying their discontinued bags, LV organizes a sale for its employees.
It’s also said that Louis Vuitton does this so that everyone pays the same price for their bags!
