LV is operating in a luxuary market which means bad economy hits them hard, but in fact, when LV increases prices, thier sales goes up on the contrary.
They know that we are addicts, have a long list of things to buy and save up money for that. When price increase is constantly happening like now, we buy more to protect ourselves from further increase!
Unlike other industry, they can pass on any price increase in costs to the consumers. No competion exists. In this sense, they created a very good business model.
I know all this in my head, but sadly I am thinking of buying more items than I planned this year before the next increase takes place. I cannot act rationally in front of LV
I agree, but even this has its limits. Many of the lower end luxury companies have been hit somewhat already (like Gucci and Tiffany's), so it may just be a question of time before LV is as well.
