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Because "made in China" doesn't sell. A quality Chinese manufacturer could do a quality bag, but it would sell as just a good bag, with a price reflecting the quality of the materials and workmanship that went into it. I can imagine a lawyer, doctor, etc... buying such a bag as it is a work tool that will see heavy use and it is important for the image to have a reasonably nice looking bag.

But luxury is more than that, you buy a story and exclusivity. You want to think you are one of the few, you want to think about the small town in Italy, get the idea that by your purchase you contribute to a tradition, it has to be special, and China can't deliver that. At least not for handbags, I guess it is a different story for, say, ceramics, where China has a recognized tradition.



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