Today’s economics lesson focuses on supply and demand — and Louis Vuitton’s Neverfull bag. For a few years there have been rumblings that Louis Vuitton is going to discontinue its canvas bags. (ICYMI, those monogram-laden bags are some of the most counterfeited bags in the world *and* some of the best investment bags you can buy.)
It seems that finally the French fashion house is making moves in that direction, though these moves are less dramatic than many predicted.
What Louis Vuitton Is Doing
The Louis Vuitton Neverfull is not being discontinued, but access to it is being restricted. Louis Vuitton is both imposing a waitlist for the Neverfull and limiting its purchase to in-store (it’s already out of stock online). The current waitlist is estimated to be roughly 2-3 months. But here’s the kicker: Once you are notified that the bag is available, you must pick up the bag within 24 hours — otherwise, Louis Vuitton will move on to the next name on the waitlist.
Interestingly, these restrictions only apply to the classic versions of the Neverfull that are part of the brand’s permanent collection. They don’t apply to seasonal versions and special editions, which are expected to remain available for purchase online.
Why Louis Vuitton Is Doing This
The short answer is economics. The long answer is that Neverfull bags (and the rest of LV’s monogram lineup) are some of the brand’s best sellers — and some of the brand’s cheapest products. Louis Vuitton has been fairly open about its desire to both move upmarket (a la Chanel) and to shift buyers toward its more expensive all-leather bags. Capucines, we’re looking at you.
Creating a waitlist for one of its most popular entry-level bags may help achieve the above objectives. There’s little doubt Louis Vuitton hopes that by creating this (artificial) scarcity it will convert at least some would-be canvas tote-buyers (who either don’t want to wait or who can’t get to a physical store) into leather bag-buyers.
What’s Next
Well, that will depend on how this experiment goes. If it turns out that by making the Neverfull harder to buy, the brand sells an increased number of all-leather bags, there’s a good chance that more canvas bags will be slapped with restrictions as well. If, alternatively, would-be Neverfull buyers simply turn to other canvas options, or don’t buy any Louis Vuitton bags at all, the brand will likely rethink this approach.
What’s your prediction? Will restricting the Neverfull help Louis Vuitton move upmarket? Tell us in the comments!