Cheap Chinese Labor GUCCI Responds To "Serious Slander"

Italy's luxury brand GUCCI has been caught in a public opinion swirl recently.

The Italy RAI3 channel kicked off the REPORT in December 21st (last Sunday) by using GUCCI cheap Chinese laborers and the cost of 1000 euro handbags to assemble only 24 euros.

For the above announcement,

Responding and counteracting, declaring that the content of the program was "unrelated" to the company, and accusing it of being "not only completely wrong, but also serious libel", and indicated that it would take relevant legal actions to make relevant reports.

According to REPORT program, GUCCI is used in Scandicci Town, Florence, Italy.

The working hours are 16 hours per day, and there is no rest time on Saturday.

GUCCI said that when the company was unaware, it was wrong to report the intention to accuse the company of the strict supervision system. This kind of reporting is biased and totally untrue.

For REPORT's scenario, GUCCI said it had never done so.

GUCCI also said leather goods were all made in Italy, with tier one suppliers and two tier suppliers employing 7000 employees and 90% Italy citizens.

All suppliers will be monitored regularly (there are about 1300 monitoring audits per year, including monitoring day and night) to verify whether they are in line with the GUCCI stringent supplier policy and ensure that employees are treated correctly.

This is even more important for night work. GUCCI will respect the relevant legal provisions and approval procedures. Night work will be called "overtime" or "shift work".

"The company sells the handbag to Gucci company at the price of 24 euros, but it sells for 1000 euros at Gucci shop," Aroldo Guidotti, Mondo Libero director of a subcontractor, said in the programme.

The report continues to point out that "the supplier deliberately sets the name of Italy on the company name".

"Mr. Guidotti's two tier supplier, Mendo Libero, is responsible for producing 0.19% Gucci leather products.

In the past few months, several monitors, even at night, Mondo Libero has been repeatedly referred to as working conditions.

GUCCI also asked them to take remedial measures against these identified problems.

Mondo Libero has evidence that these problems have been addressed and most of them have been resolved. "

GUCCI's statement said.

In recent years,

The low cost industry has frequently been on the offensive, and GUCCI has also been accused of "profiteering".

But GUCCI pointed out that the REPORT program only compares the cost of a link in the production process with the customer purchase price, which is incorrect.

The 24 Euro referred to in the REPORT program is only part of the cost of the assembly process, but it does not consider expensive leather materials, hardware and cutting costs, nor does it consider the cost of packaging and pportation.

In addition, there are many other expenses that must not be included in the sales.

All these factors will increase the accrued cost by many times.

The GUCCI statement also pointed out that the program not only used candid illegal ways for 5 months, but also the director and the host of the program deliberately avoided seeking the company's response.

"The program takes the form of unlawful snapshots, and deliberately selects 3 from the total number of 576 suppliers. The content can not fully and accurately display the company's strict supply chain policies and processes."

GUCCI said.

The statement is a response to all the details of the program. GUCCI said that the inspection of the inspectors under pinhole camera records is indecisive. It is worth noting that the inspection is made up of two parts: the first part is based on the relevant document audit, and the second part is the behavior review of the inspection behavior itself.

These pinhole video and video recording are concentrated in the first part.

However, we must stress that the inspectors did not ask the inspected objects to make corrections in time, and they could only make recommendations based on their audit results.

The audit actions mentioned here have identified problems that have been resolved afterwards.

GUCCI said that the system that has been implemented has been paid attention to by small craftsmen.

A research institute related to the development of GUCCI's supply chain agreement says that when a paid worker fully agrees with the relevant national agreement, the budget of a well managed workshop will enable its owners to earn eight percent to fifteen percent.

GUCCI is not aware of the agreement between the first tier suppliers and the two level suppliers.

In this case, Almax and Mondo Libero did not comply with the rules of supply chain agreement issued in 2009.

It is very obvious that the REPORT program is a selective and out of context story.

This is a deliberate smear of the strict mode that GUCCI has fully complies with the regulations and has reached a standard of agreement with the relevant agencies.

GUCCI further indicated that if the REPORT program was interested in more than 500 suppliers who strictly abide by the policy, it was also evidence that this mode was pparent.