A well-known company known for its high-end fashion products such as sunglasses, watches, jewellery, and accessories is Louis Vuitton (LV). The brand has become well-known throughout the world and has more than 460 outlets distributed across 50 different countries.
It may come as a shock to find that, despite the fact that LV items are well-known for their expensive prices, the company really destroys all of its unsold bags at the end of each year. The reasoning for LV’s decision to burn these goods in place of altering or giving them is pretty strange.
This serious step is taken by the corporation to prevent the sale of its goods at a discount and maintain the exclusivity for which LV is known. This practise is also influenced by a US statute called “duty drawback.” According to this rule, the corporation is entitled to a duty refund if an imported item is destroyed with customs’ permission after duty has been paid on it.
Given that duty rates on Louis Vuitton bags are high, often ranging between 15 and 25 percent, the business makes up part of its losses through these tax refunds.