Is this the end of an era?
Word is coming out (again) that Louis Vuitton is intending to discontinue their ever-popular monogram line just as they did with the extremely popular toiletry pouch. It was a stunning announcement as this piece was a true best seller and people couldn’t understand why the brand would suddenly eliminate these pieces. But, this time around, the story has a bit of a twist making the rumblings seem a bit more substantiated.
When thinking of luxury handbags, the name at the forefront is the house of Hermes. Priding themselves as the pinnacle of excellence and craftsmanship, the house has set the standard of exclusivity and prestige. Its no great mystery that a good marketing campaign can do wonders for any business and luxury brands are no different. As Pursebop reports, Hermes classics such as the Birkin and Kelly, are the priciest and most sought after bags on the market and its the clever marketing strategy, coupled with their selective demand and limited supply strategy, that have elevated their bags to “holy grail status.” A very select few Birkin’s and Kelly’s are actually produced in comparison to the number of people wanting them. Through this clever marketing strategy, Hermès has created a bone-dry market that craves saturation. Its really simple economics, supply and demand and Hermes has that market covered. Saturation and surplus diminish the allure and “magic” behind a hard-to-get item and paint a brand as “commonplace”. This is surely something Hermes is not looking to be anytime soon.
Chanel is another luxury brand that is looking to elevate its level of exclusivity by simply outpricing the majority of the consumer market. Chanel regularly increases pricing of their most popular items such as the medium classic flap bag. This piece now comes in at a staggering $8,000; a price simply out of reach for many. Again, this marketing strategy is helping keep this exclusive product out of the hands of the masses and awarding it to the hands of the few. In doing so, Chanel is inching towards the concept of hyper-exclusivity pioneered by Hermès.
But what about Louis Vuitton?
Louis Vuitton too does not shy away from price increases. Just since 2020, the LV monogram Neverfull has jumped up 30%! In a retail market that’s still trying to rebound from the pandemic, is a bold move. Embarking upon their own path to reinvention, Louis Vuitton no longer wants to be considered a starter luxury handbag line and is attempting to reposition themselves in the luxury market by no longer catering to popularity but rather prestige. How do they plan on doing this? By targeting the ever popular monogram canvas items.
The monogram canvas bags may have been Louis Vuitton’s initial claim to fame but could it have also evolved to be their potential downfall? You see, monogram bags are not leather but rather, a coated canvas, making them cheaper to make and cheaper to buy. However, that could easily disputed by the aforementioned 30% price hike!
Compared to the leather goods produced, Louis Vuitton’s canvas bags cost less and are more accessible. Again, basic economics state that when a good or service is easily accessible, it becomes more prevalent in society. This directly counteracts the fundamental basis of luxury goods in that they are meant to elicit exclusivity. Coupled with the fact that not only are a large number of people able to score an LV canvas bag but the popularity of the same has made it one of the most counterfeited prints and styles today and they’re good too! Some of them even come with a dust bag and serial number. The canvas is spot on and unless you didn’t know, you’d swear that it was authentic
Unfortunately, for Louis Vuitton, this is not good news. Shortage to surplus of active consumer goods is an undesirable by-product of popularity. However, being popular on the the black-market is even more detrimental. These issues devalue a brand and its image.
Eyes on all leather
Traditionally, all-leather items not only cost more to make but more to buy and this may be just what Louis Vuitton wants. When the price of a certain item or items increases, the number of consumers looking to buy at the higher price point decreases., making the items more difficult to access and less common. Leather goods achieve this allowing Louis Vuitton’s mission to become a more exclusive brand.
So what now?
The discussion to eliminate the coated canvas monogram line from the Louis Vuitton portfolio is something that’s been discussed and bandied about for a few years now. The houses vision to revitalize and rebrand itself is yet to fully unfurl. Will getting rid of something so beloved as the monogram canvas line be the answer to elevating the brand beyond its current state? It will be interesting to see if other luxury brands follow and ditch their canvas material? We’ll just have to wait and see. In the meantime, visit Bougie On A Budget