When I told my partner how much I paid for my Gucci bag, he asked straight away: Why is Gucci so expensive?!
Known for its double G logo, Gucci is an Italian luxury fashion company and one of the most popular brands in the world right now. In general, what makes Gucci so expensive is the brand’s rich heritage and smart business strategy. The Italian brand combines unique elements of design and clever marketing to create consumer desire and high demand. But, there’s much more than that…
Gucci is a brand that instantly evokes a sense of prestige, status, and desirability. Nowadays, Gucci is perceived as a brand name that confers the wearer with instant social status. In this article, I’ll detail how Gucci has become one of the most expensive labels in the world right now.
Gucci’s origin, history, and heritage
The foundation for the ‘House of Gucci’ was laid in 1921, in Florence, Italy, by Guccio Gucci. Guccio worked with high-end brands in London – such as the Savoy Hotel – and wanted to create a similar Italian company infused with the flavour of English aristocracy.
Back to Italy, Guccio embarked on creating iconic designs, all inspired by the British nobility of those times. For example, the horse detail, seen in various pieces across the label’s luxury products, is a homage to the brand’s early days. In those times, aristocrats were wearing a lot of equestrian gear and other similar fashion accessories.
The horse feature was placed on Gucci’s iconic loafer which now occupies a place in the Costume Institute at New York’s Metropolitan Museum of Art.
The brand image of wealthy people
According to the brand’s marketing ads, Gucci is a brand that charges “as much as people are willing to pay”. Similar to other luxury brands such as Louis Vuitton, Gucci’s products are equally expensive, and there are reasons for that.
First, Gucci does not target or cater to all buyers but only selected categories of consumers. As is the case of most labels selling luxury items, the high price becomes a form of client selectivity.
Second, Gucci banks on a strategy that allows the upper class to emphasize their status and prestige. For example, Gucci’s logo suggests that the buyers are of high class, have good taste, high class, and a strong financial background.
Global brand recognition
How did Gucci build such a reputation?
Just like Louis Vuitton, Gucci is one of the most famous brands in the world right now, with a brand reputation that goes beyond fashion. The brand’s target audience can be found in music, the auto industry, make up, and even furniture buyers.
Various components combine to create a brand reputation, such as design, manufacturing, and marketing. Gucci’s material choice, rare elements of design, and quality of production reflect into high-quality products and beautiful accessories, of high desirability. This is what allows the brand to charge high prices and establish additional value to its customers.
As a top-class Italian designer, Gucci uses only high-quality raw materials and high production methods. Also, Gucci employs leading talents and top fashion designers to create pieces that to never go out of style.
Gucci = clientele exclusivity
Why is Gucci worth so much?
Not everyone can afford to buy Gucci and that alone confers the brand a sense of sophistication, status, and prestige. Bernard Arnault, the founder of Louis Vuitton, once said: “Any fine luxury item or collectable piece is worth only as much as the buyer is willing to pay.”
The same applies to Gucci’s expensive products: while some customers cannot wrap their minds around the fact that a Gucci pair of sunglasses can top over $500, loyal brand fans don’t mind the high prices.
If Gucci’s products were budget-priced, the usual clientele would stop buying the brand for losing exclusivity. The presence of a Gucci logo suggests that the owner has good taste, solid financial standing, and demands the best.
Celebrity brand ambassadors
There are certain essential elements that combine to build value in a product, and Gucci is no exception. Apart from the ones discussed above, Gucci looked at royalty and celebrities to give the brand a good start.
As the brand continued to grow, Gucci invited some of the finest artists to design their wares and create more brand recognition and consumer demand. For example, Grace Kelly requested to make herself a Gucci silk scarf. As wealthy clientele established their preference for the brand, it began to set a precedent. Customers wanted and could afford the very best that any craftsman or artisan had to offer.
Thankfully, Gucci fulfilled both their needs and preferences for high-quality and aesthetically pleasing goods. The Italian leather manufacturer also paid close attention to fan demands who asked to have replica articles as seen in movies or songs. Replicas, but with the brand’s logo and rich heritage.
Clever PR and marketing
What makes Gucci so special?
As Alber Elbaz, designer for fashion house Lanvin, once told: “It is so much work. Doing a collection is almost like creating a vaccine. Once you create the one vaccine, then you can duplicate for nine dollars and ninety-nine cents. But see if you can create it for nine dollars and ninety-nine cents. The answer is no.”
Marketing costs for a luxury fashion house are considerable. According to Reuters, Gucci does not reveal its advertising spend. However, LVMH, another luxury house, and Gucci’s main rival has spent nearly $6.5 billion in marketing last year… which explains the $600 price tag on Gucci’s t-shirt or $500 for a pair of sunglasses.
Moreover, it was the brand’s marketing efforts that made the brand appealing to the younger generation, more inclined towards streetwear fashion styles.
Excellent product quality
So…Is Gucci worth the money?
As with any other luxury brands, Gucci also has a high overhead in business expenses: Distribution, staffing, marketing, legalities, insurance, product launch shows, and trademarking to name a few. But, there’s a lot that goes into the creation of each Gucci product, to be able to demand a higher selling price.
Apart from the overhead costs alone, the company pays obsessive attention to the quality of the materials it uses. However, the results are impressive: Gucci’s lines are timeless and in sync with current fashion trends.
In fact, the brand often sets the trends, so the label never goes out of style.
The problem with Gucci counterfeits
Gucci’s products are so much in demand that a counterfeit industry exists around its products. And, it makes sense as boasting a $600 Gucci shirt puts the owner in the same league as celebrities.
Wearing Gucci also signals to folks around that the owner is upper class and the right to be seen at exclusive sites. That’s why independent design manufacturers all over the world create knock-off versions of Gucci’s products. However, while there’s crazy consumer demand for the brand’s products, only authentic Gucci products hold their value.
To avoid embarrassment and disappointment, make sure you always order from approved luxury stores.
Nowadays, Gucci is a luxury fashion house intricately tied with high-society, celebrities, and top fashion designers. Gucci’s products are costly, and some buyers do not see the value or the reason behind the high price.
Yet, the label has loyal customers who demand the high price as a way of associating with celebrities and royals.
This article has not been edited by Fibre2Fashion staff and is re-published with permission from wtvox.com