How LVMH Uses ScarCity to Drive Luxury Demand

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How LVMH Uses ScarCity to Drive Luxury Demand

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Episode 87 of Retail Conversations explores how LVMH and other luxury houses deliberately under-supply high-demand products to maintain exclusivity and pricing power. Lucas breaks down the economics of 'scarcity as a strategy' using the example of Hermès's Birkin bag and how LVMH applies similar tactics with its Louis Vuitton and Dior lines. Luna questions whether this model works in a softening luxury market post-2025 and brings data on how resale platforms like The RealReal are disrupting the scarcity illusion. The hosts discuss the fine line between perceived shortage and genuine demand manipulation, and what happens when customers start pushing back. Specific numbers include Hermès's 2025 revenue growth of 8 percent despite cutting production by 3 percent, and the average resale premium of 40 percent on limited-edition Louis Vuitton bags. #LVMH #Hermes #ScarcityMarketing #LuxuryRetail #BirkinBag #LouisVuitton #Dior #TheRealReal #ResaleMarket #BrandStrategy #Exclusivity #SupplyAndDemand #PricingPower #RetailStrategy #ConsumerBehavior #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo

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