LV Bag Production Cost Less Than $ 400?

- Jul 25, 2017 -

Recently, Italian television "Rai3" in the "Report" column reported, Gucci use cheap Chinese labor, the daily working time of up to 16 hours in Florence, Italy Scandicci factory town, and not to rest on Saturday. This subcontractors Mondo Libero company official AroldoGuidotti in the program, said: "The company's price to 24 euros will be sold to Gucci handbags company, but in the Gucci store price of up to € 1,000."

This reporter contacted yesterday Gucci Chinese company's customer service. The other said, the program called "cost only 24 euros" are taken out of context, are selectively specific mention specific aspects of the story, the brand is a slander. She said that 24 euros is just the cost of production and assembly of products, but the real cost of a bag is actually much higher, including the cost of high-quality leather as raw materials, product packaging, logistics and sales channels.

LV bags cost less than $ 400?

Coincidentally, one claiming to be the "manufacturing plants done in person" Internet writers "full drunk dolphin" in an article a few days ago, said: "A counter price of about 20,000 yuan LV bag, I estimate that the cost of high-volume manufacturing about 200 yuan. batch may have to 400 yuan a little smaller. "the article also mentioned, LV bag is embossed with a synthetic material or PVC coated canvas oxford cloth, and the" quality of PVC resin prices are ten pieces one kilogram of money, "and if it is mass-produced hardware takes about 20 to 50 yuan. Its so doing, an LV bag costs between about 220 to 450 yuan.

In this regard, the reporter contacted the LV group Chinese media person in charge when the company was told, LV companies do not always respond for similar rumors. However, LV brand official customer Monica told reporters, each with a LV bag from the material, craft and design has its value, by far the brand has not disclosed the cost of a single product, profit margins and other information.

Monica also said that the reason for customers to buy luxury goods, including product quality, technology and brand history, these factors can not be compared with the tens of dollars of ordinary bags. She also said, LV no proxy processing plant in China, the products chosen by overseas production, including leather goods mainly from France, Italy, Spain and other regions.

Rational consumer prices return call

Suffered questioned the value of luxury is not only Gucci and LV, 5 months of this year, the media have reported on a million Armani suit or jacket, fabric not from Italy but from the fashion capital of an enterprise in Shandong, cost only a few hundred dollars. The OEM factory also claimed that, while providing for the BOSS and Ermenegildo Zegna fabrics and other international luxury line.

Luxury experts, dean of Fortune Character Institute, said Zhou Ting, formerly of luxury in a relatively closed market, consumers can not understand the brand of raw materials, brand positioning, the mere price and brand image building to determine product quality. "Expensive is good," this luxury brand model has been in successful operation. Today, however, the Internet and information technology developed, after the closure of the information at once transparent, and questioned by the public and the media will follow.

It is undeniable that luxury now declining overall profitability. Some analysts believe that, in terms of the domestic market and international market, the question of the cost of luxury goods are more and more, it also reflects a rational consumer trends from one side. Future, "luxury should return to a rational nature, making the global balance of the price system, and the next will be good products and services, rather than advertising campaign to increase brand market exploded." Zhou Ting recommendations. According to "Beijing Daily"


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