Want to know more about the brand Gucci? These are the top reasons that explain: why is Gucci so expensive? Keep reading for more information on this iconic fashion brand.
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Gucci is a widely recognized and well known luxury fashion brand. Known for it’s iconic designs in clothing, shoes, handbags, and more. You can easily spot the double G loco and know what brand it is!
There are a few iconic staples, such as the Soho Disco Bag and infamous footwear that are highly sought after and a must for today’s fashionistas.
If you’ve been shopping around (or just window shopping) for Gucci pieces, you may have experienced “sticker shock”. You know, the feeling of disbelief after realizing the cost associated with a product. This post will cover some of the potential reasons that contribute to the expensive products associated with Gucci.
Why is Gucci So Expensive?
1. Production Artistry
As we think through the production process, skilled workers are a requirement in order to execute a luxury product of highly sought after materials from design to final product.
Many of Gucci’s most expensive products are made by hand in Italy and other European countries. Labor costs in these countries is much higher as compared to other countries, like China, where cheaper fashion items are mass produced by machines in large factories.
Further, as technology becomes more prevalent, finding workers with required skills and knowledge to physically create these products is becoming more of a challenge in the industry. One could assume that Gucci pays a premium to maintain a skilled workforce.
Finally, Gucci is also known to complete a rigorous quality control of their products. What is quality control? It is testing of all aspects of a product before selling. It ensures that each belt buckle works properly, zippers zip, and that each wrist watch will stay fastened prior to listing the product for sale. Quality control takes time and money.
As you can see, the production within the Gucci fashion house is a big deal. With the brand making such investments in their product manufacturing, you can be sure this will impact the price customers are asked to pay.
2. High Quality Items
The standards for Gucci products are remarkably high, and that standard extends all the way down to the product materials. Gucci is well known for using extremely durable raw materials for fabric, threading, hardware, etc. Materials range from bamboo, to vegan leather, to crocodile skin.
Customers trust the materials to be long lasting and durable.
Simply browsing some of the handbags on Gucci’s site, it is clear that the materials used are high maintenance. The “materials & care” section for one particular handbag states that the bag should be stored with tissue paper inside and placed inside a provided flannel bag. Many Gucci products come with an additional dust bag simply for storage, to help preserve the product materials. This attention to detail and care is a signal of luxury, my friends!
With all these material aspects in mind, the customer should expect to be charged a higher price as well.
3. Historic Legacy
Gucci was founded in the early 1920s by Guccio Gucci in Italy. Prior to Gucci’s career in fashion, he was able to learn the needs and wants of people in terms of fashion and travel products. Knowing this, he began to offer quality products to fit these needs.
Gucci became an essential label in the upper class wardrobe. The brand quickly became a status symbol and products were passed down throughout generations.
Today, the Gucci brand is over 100 years old, which is a milestone in the fashion (and any) industry! The rich legacy of Gucci correlates to an increased product value and pricing.
4. Name Recognition
The iconic GG logo we all know and recognize as a symbol of Gucci, is another contributing factor to the expensive pricing many customers are willing to pay for Gucci products. It is more than just a logo or a color scheme, though.
Brand recognition is not something that happens overnight. If you recall, Gucci has been in the fashion industry for over 100 years. It took a significant amount of time for the general population to recognize the brand as iconic and luxurious.
Gucci has developed this reputation throughout the years, thanks to their high end clientele. Therefore, if you own a product with the infamous Gucci logo, others will likely automatically assume you carry a certain status.
5. Prestigious Status
Over the past century celebrities from first ladies to Rihanna have been seen wearing Gucci. It is no doubt that owning an authentic item implies wealth and luxury.
Many luxury fashion brands charge such high prices that the every day working class individual simply cannot afford. Why does this matter? Because pricing items at lower amounts would mean more people (with lower status & reputation) would have access to the products and be able to buy. This could take away from the prestige and branding goals. Therefore, they continue to charge very high prices to attract and retain a certain persona.
This exclusive market impacts the pricing and allows brands to charge more.
6. Loyal Customer Base
Many well known and reputable luxury brands, like Gucci, have also been known to sell out of particular items and even an entire collection! We are talking very very expensive products selling out of stock in a matter of hours. This is what happened when Gucci and KAI formed a collaboration collection back in 2021.
This proves that Gucci customers are loyal and they are willing to pay the cost, especially if they know an item is a limited edition!
7. Overhead Costs
With a background in business and accounting, I can tell you that overhead costs are usually a determining factor of final product pricing. Let’s take a look at a few overhead costs and why they could make a product more expensive.
Rent. Most Gucci retail locations are at luxury retailer sites that charge much more than your average rent at a non-luxury location.
Advertising. Have you seen an advertising campaign done by Gucci. Gorgeous. Not to mention, pricey.
Administrative costs. Gucci has some of the best designers, marketing specialists, and other skilled professionals in the industry. The salaries or wages of these professionals are included in overhead costs.
8. Design Elements
Gucci has been known to hire the most sought after designers. The history, experience, and unique characteristics of each designer sets Gucci apart from other brands.
Each designer grabs the attention of both existing Gucci customers, and new customers, to create a desirable products. These unique design elements, that cannot be found anywhere else, allow luxury brands to increase pricing.
9. Target Audience
As mentioned before, many high-end fashion houses serve a particular audience. They promote to the super wealthy and celebrity. Designs are curated for a particular lifestyle. Luxury brands create high quality, luxury products KNOWING this is what their ideal customer wants and will pay for.
Celebrities, fashionistas, and the wealthy have gravitated towards Gucci for decades. The image of Gucci is one of the many contributing factors to why Gucci is so expensive.
10. High Demand
With high demand, of any price, there must be an ability to pay for the product. History has shown us that Gucci has a customer base willing and able to pay for expensive (and gorgeous!) products. Where does the demand come from? Limited edition, exclusive designs, world renowned branding, desire, and everything else mentioned above.
This demand was not created over night, but it is surely something we have seen Gucci sustain over several decades.
Iconic Gucci Products
Looking to splurge on Gucci? Here are 5 timeless products that will last for years to come!
1. Leather Belt with Double G Buckle
This is one of the most popular Gucci products for everyday where. It is practical and iconic. If you wear belts a lot, this is a great investment piece. Currently under $500 and always on trend. This classic black belt with double G logo is sure to turn heads!
2. GG Marmont matelassé mini shoulder bag
This neutral handbag is one that can be worn throughout the year and will compliment any outfit. What makes it a great value is the interchangeable strap. This bag comes with a short chain strap (shown below) and a long web strap to wear as a crossbody.
3. Princetown Leather Slipper
A neutral mule that is sure to withstand the test of time in terms of durability and style! Mules are an effortless way to dress up the most basic outfit. Gucci mules are no exception. Made in Italy of real leather! The iconic horsebit buckle has been used in various Gucci products, I love how the hardware completes this shoe!
4. 55mm Cat Eye Sunglasses
Gucci sunglasses are another iconic accessory that makes for an easy addition to any wardrobe. These feature small double G logo on the arms. So chic!
5. New Ace Sneakers
Every girl needs a classic sneaker in her wardrobe. If you are looking for a trendy pair, these are it! The red and green strip is another famous branding image of Gucci.
How did Gucci become so expensive?
After over a century of building a luxurious fashion brand, Gucci is world famous label. Known for high quality materials, exquisite craftsmanship and famous designers.
Many factors contribute to each individual products pricing. The reason for expensive products goes beyond the actual product. It is also a symbol, an image, and a level of status many customers are after when purchasing Gucci.
Gucci is extremely attentive to every detail involved in product creation. Customers can expect products to last a very long time, which is something you simply cannot expect from a cheap product.
Additionally, celebrities, fashionistas, and the wealthy have gravitated towards Gucci for decades. It is the image of Gucci that is one of the many contributing factors to why Gucci is so expensive.
Here are 10 reasons why Gucci is so expensive
- Production Artistry
- High Quality Items
- Historic Legacy
- Name Recognition
- Prestigious Status
- Loyal Customer Base
- Overhead Costs
- Design Elements
- Target Audience
- High Demand
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