Fashion brand, Louis Vuitton burns every unsold products at the end of every year to maintain exclusivity and high prices, If you come across discounted LV products, they are either fake or pre-loved.
Another reason LV destroys its’ unsold products is to prevent theft. If there was a stockpile of LV merchandise stored in a warehouse somewhere it would be a target for thieves – considering one bag can be worth multiple thousands of dollars, a warehouse full of merchandise would be extremely valuable and a definite target. So as a method of loss prevention, Louis Vuitton proactively destroys unsold merchandise.
This destruction method also prevents the over availability of Louise Vuitton products on the market. A product that is difficult to obtain becomes more valuable in the eyes of the customer and keeps the products been so out quickly when they do go back in stock. Scarcity is one of Louis Vuitton’s key marketing tactics to maintain high demand..
They don't take products from previous year to the next year, Louis Vuitton needs to remain rare and desirable. Therefore, instead of going for discounts, the brand burns the remaining unsold products at the end of the year