What Happens To Louis Vuitton Handbags At the End Of the Year Will Shock You

Louis Vuitton is a well-known brand that’s popular for making luxury handbags that are sold in 50 countries around the world. With the average handbag running just under $2,000, you might be wondering what they sell for when they go on sale at the end of the year. The answer is simple — there is no sale because he company destroys them at the end of the year. Yes, you read that right. Instead of putting them on sale or donating their unsold bags, Louis Vuitton puts all the remaining items into the fire. The company doesn’t do that to avoid having to sell their luxury handbags at low prices, but in order to maintain the exclusivity that it's known for. The secondary reason is something called “duty drawback.” The law states that if something is destroyed after a duty has been paid on it, the duty will be paid back to the company. Since Louis Vuitton’s bags have a high duty rate — around 10% to 15% on average, the company makes up for the loss of the bags by getting the duty back.