No, we do understand. Maybe it's you who doesn't understand that those glitzy and glamorous ads can be used to attract the general population into buying their products. What you're describing is the image they are selling- there is no question that LV is for luxurious travel. However, just because they show jet setters in their ads, it doesn't mean the jet setting crowd is their sole target audience.
Actually, I side with COSMOS (but don't necessarily totally agree with her). Just because "everyone" buys LV, doesn't mean it was targeted to "everyone."
The "target market" is the main demographic that LV wants. That target is probably something more like $75,000+ income, female, 24-45, metropolitan (or "cosmopolitan") city.*
The way they achieve reaching to the target is with their brand image of the chic jetsetter.
Now, the people who don't fall under the "target" is not necessarily an unwelcome market (LV, as a corporation, loves money), but they are not the target. The people who fall under the $75,000 (or whatever it really is, maybe higher or maybe lower than that) income bracket or doesn't met the chic, upper class/upper middle class image of the "target" falls under the trickle-down-theory. ie, for the most part these luxury companies use LE or clothing and an image to lure customers in, target or non-target, figuring that the lower income people who want to buy into that sort of lifestyle will buy the lower priced items. (This isn't 100% the model, as the Neverfull and the Pochette have both been in ads BUT the overwhelming majority of ads for LV are higher priced items.)
*Please note that my description of the "target" is not accurate, that is just a rough outline of what I think it is.
Also, please not that just because someone isn't in the "target," it does NOT mean they are an unwelcome market, or even a secondary market that LV is hoping to attract.
In addition, any marketing strategy will attract non-"targets" -- it does NOT mean it is a bad marketing strategy.
This strategy is just to help focus the branding of the company. If LV really did "target" "everyone," their ads, promotions, parties, etc. would not be as consistent, and therefore, would not be as strong as it is.