pam on Nostr: Reading abt Dior and Armani bringing in workers from China and paying them $2-3 per ...
Reading abt Dior and Armani bringing in workers from China and paying them $2-3 per hour and they sleep in the factory as they continuously work. Normally you hear these problems by fast fashion instead of luxury brands.
A Dior bag at cost price is $57 and sold for $2800. An Armani bag at cost price is $99 and sold for $1900.
Typically cost to retail is about 4x as you have shipment, tax, transportation, warehouse, agent fees, distributor fees, discount allowance, marketing allocation etc. so the estimated retail price is about $57 x 4 - and a net profit is ~ 6% to 10%. Anything more than that retail price buffs up net - which is why luxury brand attracts investors.
Online sales removes distribution cost but the cost ends up almost the same considering online marketing expense in discovering users, shipment to consumers and returns (which can be very expensive if international as its 2x logistics cost). Ideally if can be sold online and without marketing, that would be the cheapest alternatives but this requires reputation of brands, owners etc for it to materialize.
Fashion is an interesting business, but of late the industry lacks passion, progressiveness and tact.
A Dior bag at cost price is $57 and sold for $2800. An Armani bag at cost price is $99 and sold for $1900.
Typically cost to retail is about 4x as you have shipment, tax, transportation, warehouse, agent fees, distributor fees, discount allowance, marketing allocation etc. so the estimated retail price is about $57 x 4 - and a net profit is ~ 6% to 10%. Anything more than that retail price buffs up net - which is why luxury brand attracts investors.
Online sales removes distribution cost but the cost ends up almost the same considering online marketing expense in discovering users, shipment to consumers and returns (which can be very expensive if international as its 2x logistics cost). Ideally if can be sold online and without marketing, that would be the cheapest alternatives but this requires reputation of brands, owners etc for it to materialize.
Fashion is an interesting business, but of late the industry lacks passion, progressiveness and tact.