Luggage is such a huge profit margin item. I'm told that the shipping of luggage and retailing of luggage costs more than the production itself sometimes (depending on the piece). Malls charge 7% of revenue as rent (sometimes more depending on the mall). That 7% is sometimes higher than the actual production cost. A $2000 Dior handbag probably costs around $50 USD for Dior to buy from a contract manufacturer. Of course, there are still more costs, such as contract management, admin, overheads, shipping, etc. Thus, the 7% paid to the mall for rent is definitely higher than the amount paid to the contract manufacturer.