Cruise 2021

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resellers making a killing off this high demand has two consequences though - yes, the resellers do profit quite handsomely, but also the perceived value of LV as a company goes up too

isn't this why hermes seen in such a superior light? their bags are hard to obtain, and since they limit supply and the demand is high, resellers make a killing BUT hermes also increases its brand exclusivity... which as i mentioned, may be good for LV, which seems to be trying to do something similar (obviously not to the same level as hermes though)

one might argue that the less-tangible gain from this angle outweighs the monetary loss they're taking from making such limited numbers of the bag, but who knows - i'm no expert, just a luxury enthusiast

I’m also just a luxury enthusiast so it’s not like there’s any more weight behind my opinion.

but, I don’t think these compare well. Hermes bags are hard to obtain and they limit the supply, yes. Their coveted hard to get bags also have a starting price of $9,000-$10,000. You also have to spend quite a bit before getting a wishlist and then getting offered bags (though you can typically buy their other bags as a walk-in or off the website). It is a long process to get a bag from Hermes. This is the continuous Hermes model. Resellers allow customers who only want a K/B to buy at a markup, but typically still cheaper and much faster than going through Hermes.

I’m not sure you can get the same exclusivity from scarcity from a Limited Edition release. If LV really wanted to up their exclusivity they’d ditch or limit bags like the NF. But those are probably driving their profits most as those bags are by far the cheapest to source materials for and make.

IMHO if their goal was exclusivity, they should have kept this collection off the website entirely. Made it only purchase through a SA and available based on purchase history.

I’m just not sure this was a calculated move to boost brand prestige as much as it was a miscalculation in how much interest there was in this collection. Especially in the North American market.
 
I’m also just a luxury enthusiast so it’s not like there’s any more weight behind my opinion.

but, I don’t think these compare well. Hermes bags are hard to obtain and they limit the supply, yes. Their coveted hard to get bags also have a starting price of $9,000-$10,000. You also have to spend quite a bit before getting a wishlist and then getting offered bags (though you can typically buy their other bags as a walk-in or off the website). It is a long process to get a bag from Hermes. This is the continuous Hermes model. Resellers allow customers who only want a K/B to buy at a markup, but typically still cheaper and much faster than going through Hermes.

I’m not sure you can get the same exclusivity from scarcity from a Limited Edition release. If LV really wanted to up their exclusivity they’d ditch or limit bags like the NF. But those are probably driving their profits most as those bags are by far the cheapest to source materials for and make.

IMHO if their goal was exclusivity, they should have kept this collection off the website entirely. Made it only purchase through a SA and available based on purchase history.

I’m just not sure this was a calculated move to boost brand prestige as much as it was a miscalculation in how much interest there was in this collection. Especially in the North American market.

That's a fair point, but it basically was kept off the website, wasn't it? -- I know the heart bag was never available on the website, and could only be purchased through a SA/available on purchase history and loyalty to the brand. Other bags MAY sporadically pop up on the website but we don't know how many of those orders are fulfilled/cancelled - could also be that intermittent reinforcement at play to keep people hoping they'll score it. Hermes does this on their website too, where they show bags are available but upon check out (mostly) are not.... frustrating but keeps people hoping and refreshing, thereby increasing their (at least) engagement with the brand.

of course there are differences between LV and hermes, as I was quick to point out, in the sheer price differential between B/Ks and the heart bag, but it could possibly be a bit of the Hermes philosophy at work...keep in mind Hermes also has cheaper options available (the evelyne, which i would argue is the Hermes version of the neverfull in this analogy, is only about $2k or so)

could also be they wanted to use the North America market as a tester for this kind of thing, explaining why Asia got a lot more of the heart bag (asia makes up the majority of its profits, I believe, and it would be a much bigger risk to test that market). again, all speculation and more than willing to discuss further
 
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That's a fair point, but it basically was kept off the website, wasn't it? -- I know the heart bag was never available on the website, and could only be purchased through a SA/available on purchase history and loyalty to the brand. Other bags MAY sporadically pop up on the website but we don't know how many of those orders are fulfilled/cancelled - could also be that intermittent reinforcement at play to keep people hoping they'll score it. Hermes does this on their website too, where they show bags are available but upon check out (mostly) are not.... frustrating but keeps people hoping and refreshing, thereby increasing their (at least) engagement with the brand.

of course there are differences between LV and hermes, as I was quick to point out, in the sheer price differential between B/Ks and the heart bag, but it could possibly be a bit of the Hermes philosophy at work...keep in mind Hermes also has cheaper options available (the evelyne, which i would argue is the Hermes version of the neverfull in this analogy, is only about $2k or so)

could also be they wanted to use the North America market as a tester for this kind of thing, explaining why Asia got a lot more of the heart bag (asia makes up the majority of its profits, I believe, and it would be a much bigger risk to test that market). again, all speculation and more than willing to discuss further
Not the person you responded to, but I would argue the opposite is true. The rest of the world is the tester, and USA is the hardest market to succeed in. Lots of companies and individuals do well outside of America, but fail the moment they enter the American market. Android phones and windows computers/laptops are technically the most used platforms globally, but Apple is king in the US. Uniqlo wanted to surpass Zara as being the most successful fast fashion brand, but they bit off more than they could chew when they over-expanded in the American market. International music, film, and tv artists may have hits in America, but rarely do they ever gain sustained success. Americans vary in their interests, so to have someone or something that appeals to a lot of Americans, who are willing to spend the money too, can be a difficult task to achieve.

LV has a tendency to release more exclusive items in Asia too, especially Japan. If LV wanted to give the heart bag to their more loyal customers, it makes sense to me that more were alotted to Asia then. The wage gape in Asia is much larger and more extreme than the wage gap in America. Middle income families in most Asian countries would fall under the poverty line in the US. The people in Asia who can afford luxury items can afford them quite comfortably, and to some high degree/frequency.
If a Chinese family owns factories for global companies, you can bet they are buying A LOT and often. To LV, that is a very loyal customer.

I had a classmate in uni whose family owns factories where Converse, Apple, and luxury products are made. She would buy $1000 worth of luxury makeup every two weeks. New bags from multiple luxury brands would be purchased monthly, along with rtw luxury clothes. At the end of the season, she would sell all the things she didn't like anymore for a tenth of their cost... That is how financially insignificant most luxuries meant to her.

Aesthetically, I would say most East-Asian influenced art and culture prefer representational art and objects, like a cat salt and pepper shaker. To many westerners, objects like that would be considered kitsch and in poor taste. LV just distributed the heart bag based on where they believe it will sell better, and I think they made the right call. Most American consumers value practicality. A lot of Americans may appreciate the look of a heart bag, but only a handful will purchase. It's similar to how most Americans can appreciate intricate jewelry, but very few will actually buy them, because they feel they can't wear it outside of formal events.
 
These are gorgeous. Can I ask how you will use each Pouch? Am trying to figure out if I should get this or the zcp. I don’t have a kirigami yet, but not sure how to use them. Thanks
Hi Bumbles, I actually buy Kirigami sets for the big one only. The big one fits my iPhone 11, 6 key, lip gloss, hand lotion and sanitizer, EarPods and sunnies without a case with maybe a little extra space. For me it’s the perfect worry free clutch. I know the medium fits a passport or phones that aren’t a max. The small fits a few cards or EarPods or bits and bobbles. I don’t keep the small or medium though, they would just go unused in my closet so I sell them. HTH
 
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Hi Bumbles, I actually buy Kirigami sets for the big one only. The big one fits my iPhone 11, 6 key, lip gloss, hand lotion and sanitizer, EarPods and sunnies without a case with maybe a little extra space. For me it’s the perfect worry free clutch. I know the medium fits a passport or phones that aren’t a max. The small fits a few cards or EarPods or bits and bobbles. I don’t keep the small or medium though, they would just go unused in my closet so I sell them. HTH
Thank you! Yes that helps a lot. The 3 pieces are so pretty and cute. Get idea using it as a clutch and selling what you won’t use to find other goodies! :graucho:
 
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