What do you think the actual margins on a Prada Galleria in Saffiano are nowadays?
It's 3800 bucks for the medium size:
- Production:
-- I have no info on leather cutting / sewing operations, most probably not performed in Italy anyway
-- I assume all assembly operations (zippers, tags and such) are performed in China or Romania, so close to 0
-- I also assume not even a single operation is performed in Italy, hence they don't have the play that trick like Valentino and Dior does with the "made in Italy" claim
- Logistics & transportation: same as other brands I believe
- Raw materials:
-- Saffiano "leather": as basic as LV canvas or Fendi Zucca, maybe slightly more pricy
-- Hardware: I assume hardware is manufactured in China and then galvanized / plated in other countries? Or anything done in China?
If a Dior book tote manufactured in a chinese sweatshop in Italy is 50x, I expect a Galleria manufactured in Romania to be 40x (slightly higher price of raw material and labour), hence production cost of 95 euro, which makes totally sense as most medium sized leather goods are around 100ish in production costs.