Gucci re-organizes production
Gucci is re-organizing its entire production, especially relationship with its third parties, small and medium manufacturers of leather goods. Gucci will no longer grant exclusive manufacturing rights to third parties, except companies it already owns at least 51%. Long time third party suppliers considered until recently ”strategic” will no longer be able to rely on Gucci’s backing through exclusive arrangements. The production re-organization is meant to optimize the entire manufacturing process, allowing for increased volumes according to demand. The new strategic approach to production will also encourage Gucci suppliers to improve performance and quality of craftsmanship. There are approximately 400 non strategic suppliers with sub-suppliers – in total a number of 2.000 workers.