Last Fall there was a Prada "it" bag made famous because a celebrity wore it in a large fashion shoot for Vogue. When I clicked on Neiman Marcus' website to check it out, the listed stated, "due to high demand a customer may only buy three of these items". Well, I sorta understood that, but now I see this statement on many handbags on their site and other sites as well. The one in particular that has me really perplexed is the Gucci Brit bag. It has large interlocking "G". I guess I'd understand if it were going for high prices on Ebay, but it's not. So, is this just hype by the retailers to make a customer think it's in high demand?

That is my opinion, but who knows, maybe there are people who buy these things in bulk and resell them.

Thanks for the reply! It does make you wonder, if the retailers are having a "run" on certain handbags. Why would anyone want to buy these bags in bulk? Are they selling them abroad in countries that don't have regular access? Is someone trying to corner the market in the latest bags seen in Vogue? Are they buying in bulk to "rent" them at a high weekly rate? I know the latter is a strong possibility and might make retailers angry.

22, as you suggest, it could be a marketing ploy to increase sales by creating the impression there's a stampede. On the other hand, if nouveux riches in developing countries are buying them by the barrel for any of the reasons you mention, the stores could have a supply problem on their hands that threatens the exclusivity image they're trying to portray.

It does make one wonder and why is "3" the magic number? I do know that Estee Lauder outlets started limiting purchases of the fragrances to "3" shortly after Kate Spade was discontinued and it was going for wild prices on Ebay. Lancome outlet follow the same rule, too.

Is there anyone here who works in retail who might know something about this?

I did hear from an SA at the Loewe (high fashion spanish made handbags) store in Honolulu that these items are 30% more expensive in Japan for example, so the Japanese tourists buy their luxury items in the US. That could be part of it.

I would imagine that it's entirely due to the resale market.

Caz, this surmise strikes a chord with something I experienced in the Louis Vuitton boutique here. I went in this past fall to look around. There were about five or six groups of customers in the store at the time and they were all Asian young people.

the fog is definitely clearing now. I have noticed this phenomenon as well. This explains the Gucci Britt bag's popularity and lack thereof demending on the market. I was perplexed that the Britt bags were "limit 3" at full retail on the Saks website, when the local OFF 5th had them for 50% off. I picked one up, admired the supple leather and exquisite stitching then looked at the huge heavy metal gold interlocking Gs and thought, even if I didn't mind the enormous free advertising I would be giving Gucci , it was totally impractical, the Gs would be scratched in no time. Of course, only old folks like me think of stuff like that, LOL.

an article in today's NYT confirms that the resale mkt is the primary issue. the dollar is so weak that buying here and selling in Europe (or elsewhere) has become quite lucrative.

What difference does it make for them what the customer is going to do with the bag? I don't think it is any thing to do with the dollar, I heard that it happened in Paris as well, but I can't be sure, someone told me.

Article in the NYTimes today explaining the situation:

"On its face, the policy sounds odd; that is because it really doesn’t have anything to do with popular demand. Rather, it is the fear that foreign buyers, taking advantage of the severely weakened United States dollar, will hoard the bags, then resell them in Europe or Asia, where the same items in Prada and Gucci stores typically cost 20 to 40 percent more."

See full article:
http://www.nytimes.com/2008/01/10/fashion/10CAPS.html?8dpc

The stores probably got pressure from the luxury companies because it affects their worldwide profits.

Yes, I think the manufacturers are somewhat ignoring the dollar's decline, knowing if they raise prices they will lose sales, folks will just walk away. In other words, in international terms, we are getting a discount, but the discount is intended for the U.S. only. So, the fact that these Gucci bags are ending up at outlet locations confirms that Americans feel poor or at least the need to be more conservative with their disposable income. The manufacturers are smart to keep prices lower here, not so much for this year, but for their long term customer loyalty. I was absolutely mortified at the prices in Canada. Harris Miller was $160 Canadian, not $120 U.S. and then I got to add another 8% for conversion to the Canadian, so DH paid $173 U.S. before tax! You can bet I'll cherish every drop!

22, I don't know where you did change your money but one piece of advice I would give to any American visiting Canada is to change your dollars in a Canadian bank, not in the US before leaving. In the US they have all kinds of charges, especially at local banks. In Canada, at least in Montreal, any bank will change US dollars to CAD and the transaction fee is minuscule.