Why is Gucci so expensive?

gucchi is one of the most instantly recognizable brands in the world their signature handbags have been a staple of a rich and famous for almost 100 years but how can they possibly justify their exorbitant price today we're answering the question why is Gucci so expensive Gucci Oh Gucci founder of the Gucci brand was the son of a leather worker in Florence his family was extremely impoverished and struggled to cover even the most basic expenses Gucci respected his father but vowed never to live in the same squalor as soon as he was able he started taking odd jobs and moved all across Europe searching for a better life in Paris and London he took night classes and tried to ingratiate himself into the high fashion world and though it took decades he finally succeeded in capitalizing on his newfound skills in the end he used the same leather working abilities that his father taught him as a child but aimed his product at a wealthier audience and eventually created a company that is currently valued at almost 13 billion dollars and the company didn't reach this insane valuation by selling its products at bargain prices for instance a soft syrup black crocodile shoulder bag will set you back thirty thousand dollars and the Gucci crocodile tote bag with bamboo handle costs an amazing 32 thousand dollars and surprising as it may seem the most expensive Gucci item ever sold is their Stuart Hughes belt priced at an astonishing 250 thousand dollars why so much for a double G G buckle and a belt crafted from the highest quality leather you might ask well the answer is Stuart Hughes himself famous for finding some of the most expensive materials on earth to add to his fashion accessories such is the case with this Gucci Stuart Hughes belt and it's 30 carat diamonds hand encrusted into each buckle making it more valuable than most people's homes and in 1998 Gucci set the world record for the most expensive pair of jeans ever solved the genius jeans were sold for a whopping three thousand one hundred and thirty-four dollars that's almost twice as much as the average American family spends on all their clothes for the entire year though it's hard to imagine having three thousand dollars to spend on a pair of pants this record was shattered when a Japanese collector bought a vintage pair of Levi's from the 1880s for $60,000 with a net worth of more than 25 billion dollars it should not come as a shock that gucci is the biggest selling italian brand of all time though it might seem obvious at first gucci has some stiff competition though they are thriving other luxury brands like prada and armani are worth less than half of the total net worth of gucci and keep in mind that this statistic doesn't just include clothing brands gucci is substantially more profitable than both Ferrari and the Italian pasta system gucci substantiates a huge portion of Italy's economy and though the country has suffered from a serious recession it still has the eighth largest GDP in the world Henry Pino the CEO of Gucci has a net worth valued at twelve point two billion dollars making him one of the richest men in Italy but this still doesn't justify the astronomical price of these items Gucci and similar high-end designer companies prices its clothing and accessories according to what it costs to make and sell each product the process begins with the designers that create original items for the company designers want to get paid in accordance with the amount of time and effort they put into each design project elite designers command top dollar luxury designers such as Alber Elbaz spent months slaving over the design of one dress trying to perfect the design the difference in designer clothes is that these clothes are more than just clothes they are art when you look at the price tag on a luxury brand item you have to consider what went into this piece from the start if it's just a designer t-shirt you may be paying for the time and energy spent on the brand as a whole product manufacturing is the next area where gucci spends money the company pays for raw materials manufacturing tools labor and shipping to warehouses as these costs rise the company compensates by raising its prices unlike typical store brands luxury brands raise prices due to using much better materials for their clothing these top-quality materials cost a lot more money so of course the clothing is going to have a higher price tag this isn't necessarily a bad thing though because when you buy designer clothing looks like you spent big bucks who clothing is going to last a lot longer during Mussolini's reign in Italy expensive materials were hard to acquire so Gucci began using innovative materials on vintage Gucci handbags such as canvas jute and hemp to create handbags and luggage these materials are still used to create luxury handbags luggage and clothing Gucci is known for creating their most popular styles in a variety of fabrics here we will go into detail about several popular Gucci fabrics and textiles such as original GG canvas Gucci same a leather diamante and flora Tom Ford became creative director of Gucci in 1994 by bringing his uniquely glamorous visions to Gucci sows increased by 90 percent in 1999 Gucci entered into an alliance with Pannell friend Tom Radu transforming itself from a single brand company into a multi brand luxury group Tom Ford and Domingo del Sol formed the Gucci group under the subsidiary of Caring who also owns primary shares of F's and Lauren Bottega Veneta Balenciaga and other luxury brands the brand's bags are like a family heirloom that you pass it on to your next generation the brand sources it's leather from different countries across the world this top-notch quality and impeccable craftsmanship cannot be found in high street brands that's why fashionistas around the globe laughter Carrie Gucci's exquisitely crafted handbags in the high fashion industry most clothes are manufactured closer to home as opposed to being shipped off to a large warehouse in China for reproduction this keeps the product exclusive and the quantities low however when quantities are low the manufacturing costs go up taxes in France for instance where many luxury brands are designed and produced are very high it takes a lot of money to produce these exclusive clothing pieces and ship them throughout Europe or the United States once the products are completed Gucci must pay for advertising and marketing this is needed in order to promote products to consumers a lot of money is spent in this one area alone to promote their high-end handbags accessories and Couture the Branton usually hires different celebrities and spends a substantial sum on endorsements apart from that three fashion shows are organized each year where Gucci presents its recent collections to a fashion audience that represents the creme de la creme of the industry no doubt this involves not only the cost of an event but also the cost of hiring the best creative minds in the industry the marketing and advertising cost also includes historical anecdotes of the brand customers love to be associated with the history and heritage of the brand they indulge in and Gucci knows this well the best part about the brand's marketing strategy is that it associates itself with events that cater to the top 1% of the world be it wine-tasting polo vintage car rallies or even art shows consumer desire to own exclusive high-end fashionable products is another factor that determines how Gucci prices items an increasing number of wealthy people around the world are willing and able to spend thousands of dollars to own anything made by coochie at Gucci like most designer retailers as a duty secret that keeps their prices high they destroy any unsold merchandise at the end of every year to create the illusion of scarcity in fact they burnt more than 20 million dollars worth of merchandise last year alone critics questioned whether the brand is really worth the price the nonprofit tailored wages discovered that only 25% of Gucci's garment workers make a living wage so the multi-billion dollar company is making a huge profit by exploiting workers and destroying merchandise according to fashion expert Tamara Saanen when you buy something from Chanel or Gucci and you pay full retail the money is actually paying for the massive advertising campaigns if Chanel destroys a dress it tries to sell for $1,200 it hasn't really lost $1,200 I don't think Chanel even paid $100 to make that dress and the money that Lowe's would probably just be recouped through fragrances to make matters worse gucci doesn't have a transparent supply chain and many people fear that they use illegal labor in their factories however this is a common practice in the garment industry at the end of the day the choice is up to you many people are willing to pay extra for brands like for days threads for thought people Turing and Patagonia because they prioritize ethical business practices over profit but for others Gucci still has a huge appeal perhaps because of the bevy of celebrities who have worked to make the brand seem attractive since 1921 [Music]

Channel: Top Trending

Views: 527,831

Rating: 4.9108949 out of 5

Keywords: why is gucci so expensive, gucci, most expensive, fashion, designer brands, gucci clothes, gucci belt, gucci shoes, luxury, luxury brands, history

Id: lwDv8qzgFsA

Length: 9min 15sec (555 seconds)

Published: Wed Apr 29 2020