Why do Louis Vuitton bags cost so much?

Why do luxury handbags like Louis Vuitton cost so much? Is it just because of the brand name, or are there other factors that contribute to their hefty price tags? Could it be the materials used, the craftsmanship, or even the exclusivity of owning one of these bags? As a consumer, how can we justify spending thousands of dollars on a single handbag, and what sets these luxury brands apart from their more affordable counterparts?