In order to reduce the dependence on leather suppliers and shorten the delivery time, Gucci will reduce the number of outsourced leather suppliers. In addition to Gucci ArtLab, the largest factory built by itself, it has also bought 10 leather suppliers. In the future, it will buy 10 more leather suppliers. The proportion of outsourced leather products will be reduced from 75% to 40%.
Some industry insiders believe that as Chinese consumers continue to demand and enthusiasm for luxury goods, the operational efficiency of the supply chain will be the key to win more market share for luxury brands.
Global sales of personal luxuries, such as shoes, bags and clothing, will rise by 6% to 8%, or 276 billion to 281 billion euros, following a 6% increase in 2017, according to a new study by Bain, a consultancy. Among them, luxury goods sales in mainland China are expected to grow 20% to 22% this year, far exceeding other markets such as Europe.