Rather Burn than Reduce: The LV way

LVMH founded in Paris 1854 by Luis Vuitton a French designer and businessman, started with producing Leather goods. LV quickly scaled to various categories in fashion from accessories to shoes. To women’s Designer purses. LVMH, now one of the biggest fashion house also making the founder Bernard Arnault one of the wealthiest men in the world

A crazy story came out couple of years back, stating that LV burns their bags rather than selling them at a discount, Baffled by this story , I personally wanted to reconfirm this

With my research of many blogs and videos, Everyone seem to believe the fact that LV burns their bags just cause the don’t want to offer a discount to maintain The brand’s prestige. Though it does make sense, it didn’t sit right with me

So I dug more into this

Then I cam across a Law in the US, called “Drawback Duty”. According to this law duty drawback is a refund in payments that were initially collected upon importation of foreign-made goods. As LV products have a high rate of duties , it makes up for the cost for the company

I only have to guess that there are similar laws in different countries. So burning the products makes up to for the LV’s company expense, whilst maintaining the brand’s prestige. So they question if you were in this scenario? what would you do?