Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman have each created a limit on the number of pricy designer handbags a customer can buy to 3 within 30 days. At first, it may seem like a strange restriction based on the pricetags these brands have on them. For example, brands like Prada and Botega Venetta sell purses that cost nearly $1500.00. However, the limitation is meant to deter foreign buyers from stocking up on the pricey bags while the U.S. dollar is so weak. It seems foreigners buy the purses then resell them in Europe and Asia for a nice profit.

Interestingly, one designer handbag company, LVMH who owns famous designer brands such as Dior and Givenchy, sells it Louis Vitton bags strictly through its own website, eLuxury.com. The LVMH policy limits buyers to just 2 handbag purchases per calendar year.

What do you think about these restrictions? Will they work to increase demand of the brands with purchase limitations? Will they help in reducing the resale market?

Post from: EveryJoe

Manipulating Supply & Demand of Designer Brand Handbags