The Italian fashion label Gucci is one of the most successful fashion brands in operation today. The distinctive logo, prestigious retail venues, high quality merchandise & luxury branding all communicate status, riches & wealth which places Gucci in a class of their own. While these signifiers exist to propel the brand forward many individuals still pose the question Why is Gucci so Expensive?
Gucci is expensive for several reasons such as branding, consumer demand, high quality merchandise, exclusivity and being a luxury fashion label. These contributing factors play a part in Gucci’s high price points which we have expound upon below.
Why is Gucci so Expensive? Your Question Answered Below
Established in 1921, Gucci’s rich heritage speaks for itself as a brand that has been in operation for 100 years!
During Gucci’s early beginnings the brand demonstrated innovation and resilience as there were material constraints during world war 2. This forced Gucci to create their own goods which ranged from Silk Goods, Knitwear, Footwear, & Bags. During this period, the Double G logo was formed and one which represents the brands long lasting history.
Towards the 1950s and onwards Gucci began to amass a clientele of rich celebrities, Hollywood stars and wealthy individuals. The brand continued to grow throughout the 60s and 70s introducing eyewear, watches and jewelry which have become main pieces from the brand.
How does this all translate to high pricing?
- Heritage means trust
For a brand to be in operation for 100 years means consumers have trusted Gucci’s quality, service, vision, mission and continue to do so.
- Trust means loyalty
Loyalty means consumers are willing to spend on high prices for luxury as they know Gucci will deliver on their promise.
So, Gucci’s rich heritage is a definitive factor for their High price points!
When customers associate a level of quality, prestige, and price to Gucci they are more inclined to deem these products more valuable than others.
A strong brand is the difference between a t shirt being sold at $18 or $350, and as we know Gucci products tend to be more expensive than other fashion brands. Through years of strong brand positioning, marketing and a rich heritage Gucci today has understood their segment of the market and how to communicate.
The cost of manufacturing t shirts, hoodies and certain accessories will not be higher than competitors to do the same, however due to customer loyalty through strong branding and heritage customers are willing to pay more.
Meaning a strong brand increases profit margin for Gucci as it allows the label to charge more than other fashion labels though goods were obtained at similar price points.
Aldo Gucci (chairman of Gucci Shops from 1953 to 1986) said “quality is remembered long after the price is forgotten”
Which proves our point! As Gucci continues to brand and market expensive merchandise consumers will pay attention to the quality while forgetting the price eventually.
As any other luxury brand Gucci has business expenses from distribution, staffing, marketing, legalities, insurance, product launch shows and trade marking to name a few. Gucci also goes to great lengths to source the best materials for manufacturing which heavily costs.
While majority of luxury brands won’t release exact figures to the public, we can take an educated guess that these expenses cost millions each year & for these labels to operate it can’t be at a loss. In order for Gucci to continue functioning as a label it will need to profit which would explain the high-priced clothing.
This alone should answer your Why is Gucci so Expensive question.
Brand such as Gucci maintain their status and class through exclusivity which entails ensuring their products are acknowledged by the masses but owned by a few. This suggest that those wanting to own goods from the brand must meet the minimum requirements which is having money! Lots of it!
Disposable incomes across the UK, Europe and North America continue to grow which is an indicator that luxury brands will continue to be sought after with no signs of slowing down.
As we mentioned before the brand communicate status, riches & wealth and in order to embody these values you own goods from the brand. Not everyone can afford Gucci, and this is part of the reason why Gucci is so expensive.
As disposable income continues to rise across the UK, Europe and North America so will the consumer desire for luxury goods. As Gucci has been in business for a century the brand has gained a consumer base willing to spend on quality. Take the brand Yeezy for example, a brand with a high consumer demand which often has people posing similar questions, why are Yeezys so Expensive?
High Consumer demand is a result of great brand positioning, creative collaborations, innovative approach to design, quality merchandise & loyal consumers, all of which Gucci has.
Gucci doesn’t only rely on its name and heritage to create demand but also actively collaborates with designers to bring on more demand and new audiences.
For example, the brand officially partnered with Dapper Dan who was well known in the 80s for his redesign of the brand. During the 80s Dan had his own boutique in Harlem selling luxury fashion using leathers printed with Gucci logos and redesigning them. His creation was worn by some of the most popular artists & celebrities during this time frame.
It should now be clear that Gucci is expensive for its established brand name within the industry, consumer demand, high quality merchandise and heritage. Gucci will continue to mark items highly than competitors for this reason as long as their in business.
From their perspective it’s a fair exchange, pay high premium prices for the best quality goods the market has to offer!
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