Gucci Bag Costing $39 to Manufacture in China Sold for $1350

[makapaaa]

[h=1]GUCCI DISPUTES TV SHOW COMPARISON OF $1,250 HANDBAG TO $38.80 COST OF ASSEMBLY[/h]<style>.node-article .field-name-link-line-above-tags{float: right;}.node-article .field-name-ad-box-in-article {float: left;margin: 15px 15px 10px 0;}.node-article .field-tags{clear: both;}</style>Post date:
23 Dec 2014 - 4:34pm









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Italian fashion house Gucci said on Monday it would strengthen controls on its suppliers after a television programme showed Chinese employees working more than three times their official hours to assemble its handbags.

The head of a Gucci subcontractor told an investigative programme broadcast by RAI state television on Sunday that Gucci was aware it irregularly employed Chinese workers.
Aroldo Guidotti of subcontractor Mondo Libero (Free World) said the employees toiled away for as long as 14 hours a day, while they were supposed to work only for four hours, to assemble handbags that he sold to Gucci for 24 euros (S$38.80).

The bags sell in shops for around US$1,000 (S$1,250).

In a statement responding to the Report TV show, Gucci said it had acted properly but pledged to raise the number of inspections at its suppliers and take more effective action where needed.

Working conditions in plants producing garments and accessories have become an increasingly global issue as activists and trade unionists campaign against long hours and low wages in developing countries or among immigrants in industrialised states.








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The Tuscan fashion house, part of French luxury group Kering, said it had carried out numerous inspections at Mondo Libero, which is based near Florence. The supplier had proved that it had addressed and mostly solved irregularities in working conditions. "Hidden and inappropriately used cameras, shooting carefully selected supplier companies (3 out of a total 576), do not provide for a true or accurate representation of Gucci and its supply chain policies and procedures," the statement said.
Gucci said Report wrongly compared the final price of a bag with the cost of assembling it, leaving out the cost of raw materials or the cutting, packaging and shipping expenses involved.

Source: REUTERS

 

[syed putra]

Branding mah! If no brand then can sell or $38.80

 

[halsey02]

Branding mah! If no brand then can sell or $38.80

Was briefly in this contract manufacturing for a short period of time..remember way back then, there were "sweat shops" in Singapore? they employed Malaysians women in droves...there was one I work for at A-Z bUilding....they were contract jobbers...shoes will come in cartons, unmark, except for some shipping indication number...the shoes had no markings....the female workers will use the machines to sew in the pattern etc. BRAND & then repacked in cartons, with proper labelling etc... Brands like "A' ( with three stripes), etc....& they sell at premium prices to consumers...

Then, there Jeans...from "L" etc..same, handbags..belts etc... the list goes on....even dresses that sells for $x,xxxx are sewn by the women, to the pattern from the clients...etc

So, what is not new?

 

[eatshitndie]

back alley in mongkok, hk is selling the same bags at $39. :p

 

[frenchbriefs]

nothing surprising actually,i mean our entire country is built on cheap labour.even unbranded goods like our hdb flat is built for less than 100k a unit using $2 an hour legalised labour and sold to us at "market" price.the only difference is we are forced to buy this crap while they have a choice not to buy those crap.

 

[JohnTan]

Only an idiot would think that a leather bag truly costs hundreds to manufacture. Little wonder why manufacturing has little future in useless PIIG countries such as Italy. After the Romans, the Italians have consistently shown themselves to be losers. They should stick to football and running of museums.

 

[looneytan]

back alley in mongkok, hk is selling the same bags at $39. :p

Hoii.. at Bangkok Chatuchak market you pay only 390 baht

 

[eatshitndie]

Hoii.. at Bangkok Chatuchak market you pay only 390 baht

those bags must be missing a stitch or two.

 

[krafty]

china is getting expensive, very soon, vietnam will take over the world's factory.

 

[extramarital]

Plenty of Ah Lians in Singapore proudly carry their Gucci canvas bags in public. This proves that they are idiotic brand whores who buy into Gucci's marketing hype.

 

[shittypore]

Same mah, if the Familee's Son was not at the helm you think all the doggies would be getting Millions!

 

[JohorRookie]

At $39 per bag, the manufacturer has no distribution network, and the bag will never reach the masses for $39 per bag. In order for the bag to appear in a shop along Orchard Road, the seller must rent a shop space ($), renovate the shop ($), pay sales staff ($). And still, it's not enough to attract customers. So the seller must advertise on magazines ($), buy ads space ($). And still, it's not enough to attract customers. So the seller must pay for a brand ambassador ($$$). If everyone starts shopping at some OEM factory in China, Orchard Road can close down. Having said that, at $39 per bag, still people will not buy because without advertisements and brand ambassadors, the "feel good" factor is not there. The "feel good" factor will always cost more than the manufacturing cost of the product.

 

[frenchbriefs]

At $39 per bag, the manufacturer has no distribution network, and the bag will never reach the masses for $39 per bag. In order for the bag to appear in a shop along Orchard Road, the seller must rent a shop space ($), renovate the shop ($), pay sales staff ($). And still, it's not enough to attract customers. So the seller must advertise on magazines ($), buy ads space ($). And still, it's not enough to attract customers. So the seller must pay for a brand ambassador ($$$). If everyone starts shopping at some OEM factory in China, Orchard Road can close down. Having said that, at $39 per bag, still people will not buy because without advertisements and brand ambassadors, the "feel good" factor is not there. The "feel good" factor will always cost more than the manufacturing cost of the product.

U can always skip all those steps and sell ur goods online.selling online cuts all ur overheads by 90%. There are some brands and fashion names that sell so well online they have no reason to go brick and mortar.

 

[frenchbriefs]

At $39 per bag, the manufacturer has no distribution network, and the bag will never reach the masses for $39 per bag. In order for the bag to appear in a shop along Orchard Road, the seller must rent a shop space ($), renovate the shop ($), pay sales staff ($). And still, it's not enough to attract customers. So the seller must advertise on magazines ($), buy ads space ($). And still, it's not enough to attract customers. So the seller must pay for a brand ambassador ($$$). If everyone starts shopping at some OEM factory in China, Orchard Road can close down. Having said that, at $39 per bag, still people will not buy because without advertisements and brand ambassadors, the "feel good" factor is not there. The "feel good" factor will always cost more than the manufacturing cost of the product.

U can always skip all those steps and sell online,that will save 90% of ur overheads.there are some brands and names that do so well online they have no reason to go brick and mortar at all.the only reason they do is purely for prestige and ego.

Of course if u want to sell a $39 bag for $3000 u need to do some marketing. And u need the power of chinks to drive demand.

 

[Leongsam]

Idiots who buy Gucci and other branded good deserve to be cheated.

 

[numero uno]

Only an idiot would think that a leather bag truly costs hundreds to manufacture. Little wonder why manufacturing has little future in useless PIIG countries such as Italy. After the Romans, the Italians have consistently shown themselves to be losers. They should stick to football and running of museums.

even LV, rolex, cartier all over rated. paying for the name to impress stupid people who does not know what real quality means. I once wore a grand seiko costing $20K and some stupid idiot ah tiong thinks my watch was only a few hundreds and started to show off his rolex. I told him my seiko definitely costs more than his cheapo rolex.

 

[laksaboy]

Gucci, LV and Prada bags are so out of fashion these days.

Miu Miu bags are all the rage now. If you don't believe me, ask a few of your female acquaintances who are 'retail therapy princesses'.

 

[JohorRookie]

U can always skip all those steps and sell ur goods online.selling online cuts all ur overheads by 90%. There are some brands and fashion names that sell so well online they have no reason to go brick and mortar.

What I'm saying is a Gucci bag definitely costs more than $39 because of the factors mentioned. It's not entirely accurate to compare the price of the final product sitting on the shelves in the boutique with the price the OEM sells to Gucci and claim the latter being the real cost of the item.

Whether a new brand wants to skip the chain of distribution processes to market itself online is another discussion for another day.

 

[shittypore]

Its all boils down to 'BRANDING'.

 

[frenchbriefs]

What I'm saying is a Gucci bag definitely costs more than $39 because of the factors mentioned. It's not entirely accurate to compare the price of the final product sitting on the shelves in the boutique with the price the OEM sells to Gucci and claim the latter being the real cost of the item.

Whether a new brand wants to skip the chain of distribution processes to market itself online is another discussion for another day.

But honestly do you think the the thousand dollar tag justify a 39 dollar bag even accounting for marketing.

Are u saying ur product is 97% hype and 3% substance.