Luxury: 20 Thousand LV Package Cost Less Than 400 Yuan

How much does it cost to spend tens of thousands of dollars? How much is the production cost? Recently, a TV station in Italy exposed the old luxury goods Gucci[micro-blog, which costs only 1000 euros and the cost of handbag assembly is only 24 euros.

Coincidentally, an article claiming that "LV mass production costs about 200 yuan" is also circulating on the Internet.

Gucci handbags cost 24 euros?

A few days ago, Italy TV station "Rai 3" reported in the "Report" column that Gucci used cheap Chinese laborers in Scandicci town of Florence, Italy, and worked for 16 hours a day, and there was no rest time on Saturday.

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

The Beijing Commercial Daily reporter found that in another plation for the content of the program, it pointed out that the cost of the Gucci handbag with a price close to 1000 euros is only 24 euros.

In response, the Beijing Commercial Daily reporter contacted Gucci China customer service yesterday. The other side said that the program "cost only 24 euros" is out of context and belongs to a specific story that selectively refers to specific links, which is a slander for the brand.

She said that 24 euros is only the cost of production and assembly, but in fact, the real cost of a bag is much higher, including the cost of high quality leather raw materials, product packaging, logistics and pportation, as well as sales channels.

LV the cost of the bag is less than 400 yuan?

Coincidentally, a network writer who claims to be a "man who has worked in a manufacturing factory" recently wrote 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 bags is embossed PVC coated canvas or Oxford cloth, and the price of "high-quality PVC resin is more than ten yuan per kilogram", and if the hardware is mass produced, it will probably cost 20-50 yuan.

According to this calculation, the cost of a LV bag is about 220-450 yuan.

In response, the Beijing Commercial Daily reporter was contacted by LV Group China company media leader, and was told that LV company had never responded to similar hearsay.

However, LV brand official customer service Monica told the Beijing Commercial Daily reporter that each LV package has its value in terms of material, technology and design. So far, the brand has not disclosed the cost, profit rate and other information of a single product.

Monica also said that the reasons for customers to buy luxury goods include products, quality, craft and brand history. These factors can not be compared with ordinary tens of dollars of bags.

She also said that LV does not have an agent processing plant in China, and its products are produced overseas. Leather products are mainly produced in France, Italy, Spain and so on.

Rational consumption calls for price return

The value of luxury goods is not only Gucci and LV, but in May this year, the Beijing Commercial Daily reported that Armani's suits or jackets of tens of thousands of yuan were not from the fashion capital of Italy, but from a Shandong enterprise. The cost was only a few hundred yuan.

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

Zhou Ting, President of the luxury goods field and President of the Institute of wealth quality, said that before luxury goods were in a relatively closed market, consumers could not understand the brand production raw materials and brand positioning.

"Expensive is good". This luxury brand mode has been working successfully.

But now the Internet and information technology are flourishing. The closed information is pparent at once, and public and media queries follow.

But Zhou Ting also thinks that the cost of Gucci is only 24 euros, which is not accurate because it is only one of many links in its production, and the cost of many links can not be counted in it.

Zhou Ting told the Beijing Commercial Daily reporter that some luxury goods only cost up to 50%-60%.

It is undeniable that the overall profit margin of luxury goods is decreasing now.

Some analysts believe that, whether from the domestic market or the international market, there are more and more doubts about the cost of luxury goods, which also reflects the rational trend of consumers from one aspect.

"In the future, luxury goods should return to the nature of reason, so that the global price system will be balanced, and the next product and service will be done, rather than advertising and activities to blow up the brand market."

Zhou Ting suggested.