Why is Louis Vuitton so expensive? The Actual 5 Reasons

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Why is Louis Vuitton so expensive & how does the brand justify their prices? A full overview of why LV can charge so much for a bag.

Louis Vuitton is one of the most recognized and desired luxury brands in the world. It seems that overnight, its fame went through the skies thanks to its collaborations with celebrities like BTS or brands like Supreme. 

However, this brand has a history of more than 100 years and an interesting origin. 

If you want to know who Louis Vuitton was, why it is an expensive brand, what its logo means and what makes Louis Vuitton such a famous brand, you are in the right place. 

Why is Louis Vuitton so expensive? The top 6 reasons

Louis Vuitton is a brand that has been synonymous with luxury and high fashion for over a century. The company was founded in 1854, and since then, it has become one of the most recognizable fashion brands in the world. However, the prices of Louis Vuitton products are not for the faint of heart. From handbags to clothing and accessories, Louis Vuitton products are notoriously expensive. In this article, we will explore the reasons why Louis Vuitton is so expensive.

Quality Materials and Craftsmanship

One of the main reasons why Louis Vuitton products are so expensive is because of the quality of materials used in their production. Louis Vuitton bags are made from high-quality canvas and leathers that are carefully selected for its durability and beauty. Additionally, the hardware used on Louis Vuitton products is made from brass or gold and is of the highest quality.

Louis Vuitton ALma materials
Some of Louis Vuitton’s materials

In addition to the quality of materials, the craftsmanship that goes into making a Louis Vuitton product is exceptional. Each bag is made with the utmost attention to detail in LV’s workshops in France, Spain, Italy and USA. The stitching on a Louis Vuitton bag is precise and consistent, and the bags are made to last a lifetime. The combination of high-quality materials and expert craftsmanship is what makes a Louis Vuitton bag so special.

Read also: Does Louis Vuitton Go on Sale – How to buy LV Discounted

Brand Reputation and Exclusivity

Another reason why Louis Vuitton products are so expensive is the brand’s reputation and exclusivity. Louis Vuitton has been around for over 150 years, and in that time, it has become one of the most recognizable and respected luxury brands in the world. The LV monogram is instantly recognizable, and it is a symbol of status and wealth.

Louis Vuitton is also known for its limited edition and special edition products (like the 2023 Louis Vuitton x Yayoi Kusama collection). These items are often released in limited quantities, and they can be incredibly difficult to get your hands on. This exclusivity drives up the price of these items, as they become highly coveted by collectors and fashion enthusiasts alike.

Buy a preloved Louis Vuitton bag on Fashionphile

Marketing and Advertising

Louis Vuitton invests heavily in marketing and advertising, and this is another reason why their products are so expensive. The company spends millions of dollars on high-profile campaigns, including celebrity endorsements, fashion shows, and magazine advertisements. According MarketingWeek, the brand has upped their branding and marketing budget to approximately 30 million dollars in 2022 which led to a 20% increase in revenue.

All of these efforts contribute to the brand’s image and reputation, which in turn increases demand for Louis Vuitton products.

why is louis vuitton so expensive

Cost of Production and Distribution

The cost of production and distribution also plays a role in the high prices of Louis Vuitton products. As previously mentioned, each Louis Vuitton bag is handmade, which is a time-consuming and labor-intensive process. Additionally, the brand operates on a vertical integration model, which means that they control every aspect of production, from design to manufacturing and distribution. This allows the brand to maintain strict quality control, but it also increases the cost of production.

Finally, the cost of distribution is also a factor in the high prices of Louis Vuitton products. The brand operates a network of standalone boutiques around the world, and these stores are often located in high-end shopping districts. The cost of renting these locations and staffing the stores is significant, and this is reflected in the prices of the products sold in these stores.

Resale Value

Together with Chanel and Hermes, Louis Vuitton is a brand that tends to hold its value. According to CNBC, the French Fashion house has an average retention value when reselling it of over 90%.

Not surprisingly, this can give Louis Vuitton the push to keep increasing their prices as their customers are more likely to keep purchasing when knowing the resale value is high.

Heritage & Innovation

Luis Vuitton History

Louis Vuitton was a craftsman specialized in leather goods, or in other words: in the production of suitcases and bags. 

In 1854, according to the French brand’s website, Louis Vuitton decided to found his own workshop.

It is worth noting that from the age of 16, Vuitton began working in the workshop of Mr. Maréchal, from whom he learned the craft of making quality suitcases. 

Once he felt ready to start his own business, Vuitton founded his boutique near Place Vedôme, in the center of Paris. 

The elegance of his designs, as well as their durability, made Louis Vuitton one of the most renowned craftsmen of the time among the upper classes of Paris. 

In fact, according to a well-known Spanish newspaper, Empress Eugénie de Montijo commissioned Vuitton to manufacture her personal luggage. 

This made Louis Vuitton synonymous with the exclusivity of the wealthy classes of that time in France.

Louis vuitton price differnce usa vs france europe

Read also: Louis Vuitton Bag Prices List & Potential January 2023 Price Increase. Convenient Complete Guide USD /EUR 2023

LV Innovation

One of the characteristics that distinguished Louis Vuitton from other competitors of its time were the innovations it implemented in its suitcases. 

During the 19th century, suitcases tended to break constantly for two reasons: 1) trips often lasted several days and were carried out in poor conditions (on horseback or, at best, by train) and 2) they were not sufficiently resistant. 

The Louis Vuitton brand noticed this, so among its innovations was the pin tumbler lock, as explained on the brand’s website.

This lock prevents suitcases from opening at any movement. It was adapted for suitcases by Georges Vuitton in 1886, the only son and heir of Louis Vuitton, by the way. 

This innovation, among the handmade manufacture of each of the firm’s accessories, has made it synonymous with luxury and glamour.

That is why today, one of its classic trunks can cost more than USD 45,000. 

Conclusion : Why is Louis Vuitton so expensive

To sum up, Louis Vuitton is so expensive because it is a luxury, in-demand brand that has a reputation for top-quality manufacturing. A Louis Vuitton bag will last longer than an average bag — you can find vintage Louis Vuitton bags that still look brand new.  Furthermore, LV bags tend to keep their value on the secondary market.

Other reasons why LV is so expensive are their investment in advertising and marketing, their high costs for manufacturing and distributing their products as well as their heritage.


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