I agree with Twiggers. I don't think it has much to do with where they produce it, it has more to do with who is buying it and how many you see on the street every day (which depends on prices). I don't think that any of us would be buying these things if we saw half of the people we see on the street every day with damier speedys or mono neverfulls (which is starting to happen in bigger cities like NY and LA).
I personally have lost a lot of interest in the brand, because they are introducing more low-end items in the $600 range than they are introducing higher-level permanent pieces. It seems like every "fashionista" young gay (the market I would like to separate myself from) has gucci this or louis vuitton that. Its really quite boring in the end...which is why I am at a crossroads with regards to my next purchase.
Either way, the sheer number of people spending $1000 on a bag today just means those who bought them in the past probably feel the need to spend more so as not to look so pedestrian...which could be a reason for a) the feeling of diminishing brand exclusivity, b) price increases at brands like Chanel, and c) LV losing customers like me
(i didnt mean to be so long-winded) please forgive...
I live in an area, where I see LV, Hermes, Chanel, Gucci, etc all the time. That doesn't keep me from buying them.
I will always buy what I like, regardless of who else has it.