Gucci, producing in one's country is culture
Gucci CEO Patrizio di Marco tries to invest in Italy instead of transferring its factories to China, where labor cost is 1/10th, to maintain Italian artisan, traditional craftsmanship.
If you transfer your factories to China, you can produce at much low cost, but Italy will lose 45000 of jobs and craftsmanship.
This movement can also be seen in the U.S where they tries to get its manufacturing bases back to the U.S.
M&A has been popular among luxury brand industry since Lihman brother's collapse in 2008. Conglomerate company can benefit from large-scale operation to fight against fast fashion industry.
In order to gain loyalty from customers, salesperson much give impressive experience. Gucci must provide something beyond fashion. That is, its social responsibility activities.
As a successful company, it tries to return benefits back to society, engaging in charity activities, helping UNICEF to promote education for children, protecting women's right, considering environment, using recyclable packaging materials, and installing solar panel to its all factories.
Thank you for the interesting post. I agree with the CEO about the importance to bring back the manifacure.
ReplyDeletePlease, continue to update the blog with so many useful information!