Grand Canyon University
Introduction: Gucci is a retailer of luxurious fashion accessories from Italy. Gucci was founded by Guccio Gucci in 1921. (Gucci, 2010) Although Gucci is involved with many different markets such as automotive interiors, watches, scarves, etc. it is their line of leather goods which they are known for best. It is these leather goods such as shoes and handbags that will be the focus of this paper.
When the company began in the 1920's the leather products where manufactured by Tuscan artisans and by master leather craftsmanship. The market for these products where never intended for the common person. The products were always intended to be sold to the more affluent population. As the brand began to be sought after by the more sophisticated international clientele its reputation as the leader in high end, luxurious leather goods was solidified. Even after the death of its founder, Guccio Gucci in 1953 his four sons Aldo, Vasco, Ugo and Rodolfo the formula of high quality products at a high price was not changed.
In order to maintain its reputation the leather products produced are made of the highest quality materials and in many cases hand made by true craftsmen. By maintaining this high level of quality throughout the years it has allowed Gucci to keep the price of their leather goods at a premium while enjoying growth.
Because the products are produced with high end materials and by skilled craftsmen the cost of manufacturing their leather goods is very high in comparison to other manufacturers in the industry. If Gucci were to use materials of a lesser quality or less skilled labor their reputation would suffer and would not be able to keep their prices as high as they have them now. This...