Tuesday, May 22, 2018
Controversy Brewing over Countries of Origin of Luxury Goods
Luxuries like Fakes
Controversy Brewing over Countries of Origin of Luxury Goods
  • By Choi Mun-hee
  • February 13, 2018, 01:45
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A number of luxury goods brands including Balenciaga Louis Vuitton and Prada produce their products in Eastern European countries and China and then just attach labels in Italy.
A number of luxury goods brands including Balenciaga Louis Vuitton and Prada produce their products in Eastern European countries and China and then just attach labels in Italy.

 

It has been found that Balenciaga replaced its Triple S Sneakers made in Italy with the same product made in China in the South Korean market without any notification.

This change in country of origin was discovered by South Korean consumers. The product in the market had a Made in Italy mark on its insole until the winter of 2017, but those currently available have a Made in China mark inside the tongue.

In fact, Balenciaga is not the only one doing so. A number of luxury goods brands produce their products in Eastern European countries and China and then just attach labels in Italy. Moreover, some of the others are churning out their products in China even without doing so.

Louis Vuitton is one of the typical examples. Louis Vuitton shoes are produced in its factory located in Rumania and just soles are attached in Italy along with Made in Italy tags. This is because the country of origin according to the EU’s rules of origin is where the final production process is carried out.

This practice is causing controversy in Europe as well. A French broadcasting station recently reported that Prada and Gucci are producing shoes in the same way. Gucci has produced some sneakers in Serbia since 2004 and Prada is producing shoe tops in Slovenia. In addition, Prada, Burberry, Armani, Dolce & Gabbana, Miu Miu and so on are producing products in China. About 20% of Prada bags, clothes and shoes are manufactured in China.

They are continuing to mark up their prices while moving from country to country to save labor costs. This is particularly conspicuous in the South Korean market, where more expensive things tend to be more popular. Chanel raised the prices of its products in the market three times in 2017 alone and Hermes recently did so in just one year.