Luxury clothing brands like Prada and Gucci are pulling luxury clothing lineages, saying the cost of production is out of control.
The latest to join the exodus is Italian luxury brand Gucci, which is cutting its lineages in Europe and North America, while keeping some of its iconic brands.
The news comes as luxury clothing companies in the United States are struggling to stay afloat as consumers spend less on luxury goods, while brands like Gucci and Louis Vuitton are cutting back their U.S. and European production.
Gucci is no stranger to luxury fashion.
Its luxury lineages include sportswear, accessories and fashion accessories, as well as its flagship line, the Prada collection, which includes high-end pieces like Louis Vuits and Guys shoes.
It also has the Prima Donna line, a collection of designer pieces for women, that focuses on the finer details.
Prada is one of the biggest luxury brands in the world, with a market value of $2.7 trillion, according to Forbes.
The company, founded in 1947 by Giuseppe Prada, owns more than 120 luxury brands including Prada , Armani, Gucci , Lanvin, Burberry and many others.
Pragmatic designThe Prada fashion line was designed with a minimalist aesthetic and the help of a designer who was also the founder of the luxury designer Louis Vuittes, according a statement released by Gucci.
Gucci also owns a luxury line of sneakers, a fashion accessory line, and a luxury shoe collection.
The company said the shift is a consequence of the increased costs of production, which are out of proportion to the growth in the overall luxury market.
Guis said the company has already cut back on some of the production of its luxury fashion lineages.
Guicos chief executive officer Alessandro Pisanelli said that while the company would continue to invest in luxury production in Europe, there is no longer enough room in the market.
“We are in the transition phase of our business, and we need to invest more in Italy, especially with our luxury products,” Pisanella said.
The price of Gucci’s luxury clothing has skyrocketed in recent years, especially as consumers have begun to embrace more casual wear, he said.
Guichard, a luxury fashion brand, announced earlier this year it was pulling its luxury line from stores in Germany, where it is based.
Its Italian subsidiary, Guichard Italy, said in a statement that the price of its line was too high and that it would cut costs by reducing production.
The Guichards decision is not the first time the company made such a move.
In 2013, the brand also announced it was moving its luxury lines to Italy.
The Italian company said it would reduce its production and sales to the U.K. and the U, to avoid a potential disruption in sales.
The decision did not affect the brand’s overall luxury business.