Whether Gucci, LV Are Genuine Goods Or Not?

According to a television station in Italy, the cost of Gucci handbag assembly at Euro 1000 is only 24 euros.

There is a single claim.

Articles on mass production cost about 200 yuan are also circulating on the Internet.

Luxury goods are not mysterious, but their manufacturing process is full of suspense.

There is a saying that luxury brands spend a lot of money on promotion and promotion, and their manufacturing costs only account for a small proportion of the price, especially clothing, shoes or bags.

In addition, there is no clear industry statistics on how many quantities or sectors are being outsourced to developing countries.

In the first two years, when Prada was listed in Hongkong, analysts wanted to get some clues about China's foundry from its prospectus, but failed.

Recently, a television station in Italy reported that Gucci used cheap Chinese laborers in the Scandicci town of Florence, Italy, and worked for up to 16 hours per day, while the prescribed hours were only 4 hours, and there was no rest time on Saturday.

"Gucci is very clear about the problem of illegal employment," Aroldo Guidotti, Mondo Libero's sub contractor, said in the program.

He also said that they sold their handbags to Gucci at a price of 24 euros, but at Gucci stores, these handbags cost up to 1000 euros.

In response, Gucci said that in view of the media exposure of Chinese workers' serious overtime work, the company will strengthen its control over suppliers.

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This is not the first time Gucci has been exposed to similar scandals.

As early as 2001, there were 5 employees who had complained about blood and tears. Gucci flagship store in Shenzhen was a sweatshop.

They said,

The flagship store in Shenzhen restricted staff by more than 100 acts: to apply for water, to report to the toilet, or even to work on the night shift for 7 months.

At that time, Gucci China Trade Co., Ltd., Shanghai headquarters Public Relations Department responded immediately, saying that the relevant complaints have been investigated in detail, and a series of measures have been taken, including the removal of relevant managers and shop supervisors.

Besides, the low cost and high selling price of products are also a topic that these luxury brands can not get around.

There was once a news report that the Gucci store in Beijing was stolen. Its manager reported that a bag worth more than twenty thousand yuan was stolen, but in the end, the police did not establish a criminal case because the price of the bag was hundreds of yuan.

A luxury factory manager claims that a new Gucci leather bag worth 10 thousand yuan is worth 700 euros in Europe.

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

Gucci has always claimed that its handbags are all handmade in Italy, but most of its products are completed in overseas production plants, and the cost of each bag process is no more than 4%.

In the Chinese mainland market, the cost of factory tax increases of 10 thousand yuan worth of Gucci bags cost about 4000 yuan, and the gross margin can be as high as 60%.

Coincidentally, the Internet writer who claimed to have worked in a manufacturing factory once said in an article: "a LV bag with a special price of about 20 thousand yuan, I estimate that the cost of mass production will be around 200 yuan.

It may take 400 yuan for a smaller batch. "

It is also mentioned that the synthetic material used for LV is embossed PVC coated canvas or Oxford cloth, and the price of premium PVC resin is more than ten yuan per kilogram.

And if the hardware is mass produced, it will probably cost 20-50 yuan.

In this way, the cost of a LV bag is about 220-450 yuan.

It was not only Gucci and LV that met the question of value, but in May last year, it was reported by the media that the Armani suits or jackets of tens of thousands of yuan were not from the fashion capital of Italy, but from a Shandong enterprise, with a cost of only a few hundred yuan.

The OEM factory also claims that it provides fabrics for BOSS, Zegna and other international first-rate luxury goods.

A leather industry expert said in an interview with the media that since the 80s of last century, many famous international brands began to look for production bases in China's coastal areas.

Many overseas and old brands that have been decades or even hundreds of years old have gradually lost their manufacturing and processing links to China.

"People know that Italy is famous for leather goods, but you know, Italy's labor is very expensive. Ordinary technicians charge 20 to 25 euros per hour, 30 to 35 euros, and once the employment is life long, the benefits of workers can even be doubled, and the cost can be imagined."

The leather industry expert pointed out that many well-known Italy leather goods factories often do not have many workers, just like our Chinese workshops.

"But do you think that every year, so many top brands of leather goods enter the stores in China and the world? Can we depend on these dozen or 20 workers?"

Although a large number of processes and even the finished products themselves originate from the foundries of developing countries, most luxury brands are reluctant to admit that they have co operated with these factories. When they sell goods, tellers emphasize that products are imported directly from the country of origin.

"Luxury brands are expensive and attract buyers. Apart from design and packaging, their brand packaging naturally matches their prices. Therefore, brand countries are always a luxury brand flaunting their own conditions, and naturally do not want buyers to know that their production links are completed in developing countries."

The experts said.

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For the criticism of public opinion, the luxury goods chiefs are also aggrieved. For them, although the raw materials and processing costs are not high, the marketing cost of luxury brands is very high.

Zhou Ting, President of the luxury goods field and President of the Institute of wealth and quality, pointed out that the cost of Gucci is only 24 euros, which is taken out of context, because this is just one of many links in its production, and many other links fail to calculate the cost. The proportion of the cost of production costs is only a small figure. Some luxury goods only cost up to 50%-60%.

In fact, the brand value of luxury goods costs has become an important one.

In addition, taxes and taxes are also part of the price.

For example, the price of local luxury brands in France is cheaper than that in China, and the price difference is about 20%, which is mainly due to taxes and fees.

In the luxury industry, such a cost calculation formula is popular: "raw material + processing cost + luxury brand value + market public relations cost + flag ship's annual cost + tariff and government tax rate = actual sales price", in which the cost of raw materials is often less than 10%.

The industry believes that the success of a luxury brand is the result of continuous operation and investment.

Besides marketing and maintenance, its own brand value, such as celebrity effect and historical story, are all expensive factors.

In other words, brand value is the most important part of the price composition of luxury goods. The value of luxury goods is quite different from the value of sale because the true value of luxury lies in brand, not in itself.

In 1869, Egyptian Pasha (governor) Ishmael ordered a leather suitcase from Louis Weedon.

After that, in 1877, Russian crown prince Nicola and King Spain twelve became the users of the Louis Weedon brand.

More than 100 years ago, the Custom Boxes for the royal family had already started. This is enough to make consumers attractive and let Louis Weedon become a truly world luxury brand.

Consumer demand for luxury goods has already surpassed the value of goods, and more is a spiritual satisfaction.

"In this industry, price is not a problem.

If the price is low, it will be cold. "

Yang Yang, who has been in the luxury industry for more than 10 years, has told International Financial Daily that luxury goods are not ordinary commodities strictly, and prices vary greatly with the supply relationship.

When the cost of luxury goods goes up, it will rise in price.

"However, the cost of many luxury brands is indeed high.

For example, Burberry has a waterproof, crease resistant, breathable and durable fabric, which is a purely manual process.

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A staff member of Dolce&Gabbana also told reporters that the company sometimes preferred to destroy or destroy the goods that had been damaged for the season or some damaged items.

"The consumption crowd of luxury goods is there, the price is really a floating cloud.

Even in the off-season, customers are scarce and seldom sell at a discount.

If discount or price reduction, it will give customers an illusion whether the quality of products is problematic or the style is out of date.

A few years ago, after the approval of the headquarters, the design may be launched in a specific period, and there will be a small discount for such products.

Discounts are generally the lowest level of luxury goods consumers, with a monthly salary of over 10000 yuan.

Mainstream people still like to buy new models and don't care about prices. "

Yang Yang said that luxury is not only a necessity of people's life, but a commodity with the characteristics of "uniqueness", "scarcity" and "curiosity".

After meeting the basic needs of life, people also need some things to improve the quality of life. The luxury industry of "elegance", "refinement" and "individuality" is catering to people's needs.

Therefore, the price of luxury goods is dozens of times, hundreds or even thousands of times the price of the same kind of ordinary goods. This is also a marketing strategy for luxury goods. It must be differentiated from other commodities. People who buy luxury goods may like the design of their products, perhaps their brand spirits, or their social status. They will not care too much about the difference between their cost and selling price. Those who are concerned are often the non mainstream people who buy luxury goods. They want to buy and loathe, but naturally they are more serious about the work of luxury goods or the origin and cost.

For the sky high price of luxury goods, Ouyang Kun, chief representative of China Representative Office of the World Luxury Association, analyzed whether the purchase of luxuries by Chinese people does not depend on their income and age, but on their consumption psychology.

In the luxury industry, price is only a symbol. Brand branding brings consumers unlimited glory: low-key design, traditional workshop style production, limited customization.

This series of labels that the luxury brand painstakingly manages will not only make consumers feel mysterious, but will also use luxury as a symbol of their identity, and this is also the result of many years of precipitation and brand maintenance.