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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.

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