Gucci Leather Bag Gross Profit 60%&Nbsp; Claiming That Italy'S Handcraft Is Overseas Foundry.

Five blood and tears accusation of the departing employees will be

In October 12th, Gucci China Trading Co., Ltd., Shanghai headquarters public relations department sent a letter to the media. The flagship store in Shenzhen, Gucci, was accused of being a "sweatshop". It said that it had conducted a thorough investigation of the related complaints and took a series of measures, including the removal of the relevant managers and shop supervisors.

This urgent statement did not prevent the spread of Gucci's brand crisis. According to an open letter from five Gucci employees, Gucci's flagship store in Shenzhen restricted employees through more than 100 acts: to apply for water, to report to the toilet, and even to be on the night shift for 7 months.

Yang Qianwu, an attorney for the departing employee of Gucci store in Shenzhen, said that it was seeking to settle through judicial proceedings.

According to a luxury factory manager, a new Gucci leather bag worth 10000 yuan is worth 700 euros in Europe.

The cost is about 50 euros, plus rivet, buttons, zippers and so on. The total price of a leather bag is not more than 90 euros.

Gucci claims that its leather bags are handmade in Italy.

The person believes that most of the styles are completed by overseas Foundry: "luxury has been formed after years of global division of labor.

In China, the total tax rate, such as tariff, excise tax and value-added tax, is about 28%-30%.

"The rest can be attributed to the gross margin of the product."

The above said, "the domestic market value of 10000 yuan, the factory cost plus tax cost is about 4000 yuan, gross margin is 60%."

In the market segment, the annual cost of luxury flagship stores is about 3%. The cost of advertising and public relations activities of brand and new products is around 6%-7%, that is, the total cost of marketing is about 10%, and the rest is profit, including brand added value.

According to the World Luxury Association (micro-blog) data, human cost accounts for only 5%-6% of the price of luxury goods, so the net profit of Gucci brand may exceed 40%.

The above said: "this industry profit distribution chain has intensified the luxury enterprises' emphasis on external brands and internal management.

Their revenue is too dependent on brand value-added, so there will be particularly harsh demands on services related to brand and store image. "