Does the "Made In Italy" Label Have Intrinsic Value?

by Deidre Woollard (RSS feed)
Dec 27th 2007 at 8:02AM

The rising euro and the falling dollar have had a wide variety of effects in the world of luxury goods. For the holiday shopping season, Europeans headed to the U.S. to take advantage of the lower prices. An AP article brings up the fact that the prized "Made in Italy" label on luxury goods may cost us even more in the coming year. Italian brands such as Gucci, Armani, Fendi and Versace are finding that it is becoming more expensive to produce goods in their native land. In the article Diego Della Valle, founder of Tods leather goods, says that those who produce in Italy are at a disadvantage because it will cost them more to produce the same goods. Currently, most designers are absorbing the increased production costs, especially since consumers in the U.S. seem to be cutting back on their consumption of many luxury goods.

The question for the long run is whether or not consumers will be willing to pay more for something that is made in certain place. Currently makers of goods created in both the U.S. and Europe are at a disadvantage compared to those who produce their items in China and other places where costs are lower. But the recent recalls of toys and other products made in China has made some consumers more aware. For the last few years, the designer name has been enough of a reassurance of quality for consumers no matter where the products is made. I think, however, that we are at the start of a trend where all consumers and particularly those at the higher end of the spending spectrum will be paying more attention to where products are produced. If not, that "made in Italy" label might end up becoming a bit of a rarity as costs force designers to chose economy over tradition.

Tags: armani, designer, dollar, euros, fendi, gucci, handbags, versace

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Reader Comments (Page 1 of 1)

Kimberly Yurisich Mar 4th 2008 8:58AM

As the founder of a new luxury handbag label that DOES manufacture in Italy (and is paying the price to do so:-) it is wonderful to see all of you voicing your support for the craftsmanship that the Italians can provide. When I set up the company there were many people advising us to look elsewhere for production, but to offer the type of quality and crafstmanship that I wanted for our bags I found only the Italians (and only the best factories there) could produce the quality we wanted. Thank you all for showing that it does make a difference to you as well.

Clodia Dec 28th 2007 11:25PM

It will be a terrible mistake if the designers mentioned in this article decide to have their creations made in China. For Christmas I bought for myself a merino wool sweater made in China and my daughter liked it and wanted the same. They were gone at the store so I decided to buy one Made in Italy which price was a little bit higher. If you put those two sweaters together, the difference in the quality of the yarn and the workmanship is so great, that you feel like crying. So, please, keep your goods Made in Italy.

Budi Mas Dec 31st 2007 4:31PM

Made in Italy forever.

Clodia Jan 2nd 2008 12:48PM

I just returned the made in China sweater and bought the one Made in Italy!

Yes, Made in Italy forever!!!

Marcus Jan 8th 2008 8:44PM

Honestly it does not matter - Much of the lower end made in Italy goods are made from Chinese Yarn anyway and assembled in italy. There are factories in China making really high end goods which are better than much of italian making. But when you compare the best of both countries then Italy has an edge when it comes to craftsmanship.

co_dorin Jan 22nd 2008 10:47PM

as some people i am Dolce and gabbana obssesed. i have a few items of clothing but a large array of sunnglasses. i love them. i am extremly happy especially with the model 6005. as some of you are aware that the DG line is starting to be moved to china. I recently bought the DG brand model 3009 froma a reputable store for $200. they are made in china. i mean they look nice but the don't have that same look of workmanship. i mean just the finsh on the polycarbonate dosen't have that same lusture... i was really thinking of returning them but in the end they look good but definetly are not as well made as they would be if they were "Made In Italy". I wish Dolce and gabbana will rethink their move. i wouldn't mind paying another $20-30 more or maybe more as long as they are "Made In Italy. sorry for the long post...