Ever had the moment where you pick up a designer item and almost have a mini heart attack after seeing the price? Well, you are not alone. Walking into a premium store can be quite an intimidating task. It can cause your wallet to fear for its life. Feeling like an imposter is also another common side effect of entering the land of the rich.
Gucci has long established its presence as a global, bigwig brand. Founded in 1921, the firm has acquired mounds of wealth in its lifetime. But its prices are not for the faint of heart.
The Prices
If I were to ask you to tell me the estimated price of a good sweater for men, your guess would land around $50-60, right? Do you want to know the price of a Gucci sweater? Are you ready for it? Some $1500.
Yes, you read that right.
No, I am not exaggerating.
Yes, I checked the official website.
No, the sweater is not made of gold. Don’t be ridiculous.
If the price prompts you to question your existence, join the club. It seems so outrageous. $1500 for a sweater! But people do pay these exorbitant amounts for Gucci’s products. Naturally, your next question would be “WHY?!”
The Reasons
Strong Brand
First, we must acknowledge the sheer power of a major brand like Gucci.
Decades of hard work and persistence lie behind these names.
The iconic double G logo did not garner the respect that it has overnight.
Founder Guccio Gucci put in a lot of research in the early days, getting to know his target consumers. Big designers regularly work with fashion icons to launch product lines. Enormous amounts are spent on marketing.
The foundations for a strong brand were built a long time ago.
Quality
Gucci products are made from the best sourced raw material.
Even a minor defect can keep a product off the shelves. The items are long-lasting and are worth the amount spent on them.
The products undergo several quality checks and tests. Most of the products are made in Italy under careful scrutiny. Durability is ensured.
Only the items that pass all stages of carefully orchestrated tests reach the consumer. Safe to say, it is not easy for a product to be Gucci.
Demand
The company has always been one of the top luxury brands in the world.
It has definitely been a fashion favorite since its birth.
Anyone who holds a place of eminence in the industry recognizes the worth of a Gucci product. The products have a place of pride in popular events.
And we know prices work on demand and supply, if the demand is high the prices will automatically go up.
The demand for Gucci is extremely high and hence above average prices are retained.
Value
Getting legends like Brad Pitt, Harry Styles and Jared Leto behind your brand is not a menial task.
Neither is building a valuation of $15.6 billion.
But these are things that the fashion giant pulled off.
Gucci as a brand has carved itself a pristine image in the world of fashion. Even after facing hardships, the company has risen to the highest ranks among its peers.
Certainly, asking its customers to pay more for its efforts isn’t unreasonable.
The Intent
Another fact is that the Italian company was always meant to cater to the elite group of society.
From day one, the goal was to create the image of an exclusive, high-end brand.
This is why the prices were kept high. Its prestigious image mandates high prices to ensure the pristine status of the firm.
Continued Relevance
Alessandro Michele, the Director since 2015, has a huge role in giving Gucci its fame.
He found a way to keep Gucci relevant in current times while retaining a connection to its roots.
Gucci has been relevant in luxury fashion for more than 100 years which is a huge thing.
Its adaptability, creativity, and iconic monogram are also driving factors behind the figures.
Exclusivity
To top off all that, Gucci releases its products in small numbers.
Chances are that your Gucci bag will not find a twin around you.
Gucci makes every design in a very limited quantity, unlike other “cheap” fashion brands.
This creates a sense of scarcity in the buyer’s mind which thus results in higher prices.
And the sky-high prices ensure further limited sightings and the cycle continues.
Status Symbol
More importantly, when you see a Gucci product, you know it’s a Gucci product.
The brand name possesses an undeniable power.
The products are distinguished. This makes the brand a status symbol.
It also makes you exude a sense of eminence. Even more so than your I-phone perhaps. So why not pay for what you get?
the bottom line:
The high prices of Gucci are derived from various factors, some think that the prices are fair while others find them ridiculous.
The thing is it’s not for everyone.
If you understand the value of heritage and fashion innovation then the high prices of Gucci products make sense to you. But if these are things you don’t care about then obviously Gucci is not for you.
