Key facts
- Gucci has launched new luxury sneaker models labeled "Made in China."
- The new sneakers, including the "Drip" model, are priced around €800 in Europe and $1,000 in the United States.
- Gucci stated that the Chinese manufacturer was chosen for its technological know-how and capabilities.
- A Gucci spokesperson confirmed no broader plans to move production outside Italy.
- Analysts at Berenberg expressed concern that the "Made in China" label could create tension with Gucci's luxury positioning.
- Gucci has also begun cutting prices on a select number of products globally.
Gucci has introduced new luxury sneaker models labeled "Made in China," marking a significant departure from its traditional Italian manufacturing heritage. This strategic shift, aimed at controlling costs and appealing to more price-sensitive aspirational consumers, has drawn scrutiny from industry observers who question its impact on the brand's high-end image.
The new models, including the futuristic "Drip" sneaker designed by Demna, are priced around €800 in Europe and $1,000 in the United States. Gucci stated that the Chinese manufacturer was selected for its specific technological capabilities required to achieve the desired performance and quality standards. A spokesperson for the brand emphasized that Italy remains central to Gucci's manufacturing identity and that there are no wider plans to relocate production.
This move comes as Gucci, the flagship brand of parent company Kering, seeks to revitalize its sales, which have reportedly halved over the past three years. The brand has also begun implementing price cuts on select products globally, a strategy that has surprised some investors. Analysts at Berenberg noted that the "Made in China" label could create a tension between product origin and the luxury positioning Gucci aims to reclaim, while consultant Simon Whitehouse described the move as "not a good look."