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Gucci’s China-Made Sneakers Test Luxury Image During Turnaround
Gucci is a famous luxury brand known for making many products in Italy.
It has started selling two new kinds of sneakers that say they were made in China.
Gucci says the Chinese factory had the special skills needed to make these shoes.
The company also says Italy will remain very important to its manufacturing.
Some experts worry that customers may think the shoes are less luxurious because they were not made in Italy.
The shoes cost about €800 in Europe and $1,000 in the United States.
Gucci is trying to attract shoppers who like luxury goods but pay close attention to prices.
The brand’s sales have fallen by half over the past three years.
Its new designer Demna is expected to help make Gucci popular again.
Gucci is selling two new sneaker models labeled “Made in China,” breaking with its usual Italian footwear production.
The Drip sneaker, designed by Demna, costs about €800 in Europe and $1,000 in the United States.
Gucci says Italy remains central to its manufacturing identity and that Chinese production was chosen for technical expertise.
Analysts warn the Chinese origin label could weaken Gucci’s luxury positioning and intensify questions about value.
The move comes as Gucci tries to recover from sales halving over three years, store closures, and declining investor confidence.
- Who
- Gucci, designer Demna, parent company Kering, and analysts and luxury consultants commenting on the strategy.
- What
- Gucci has introduced two China-made sneaker models while pursuing a broader turnaround and efforts to regain shoppers.
- Where
- The sneakers are made in China and sold by Gucci internationally; the collection will be presented at a Milan runway show.
- When
- The Drip sneaker went on sale last month, and Demna is scheduled to present his latest collection on Friday.
- Why
- Gucci says the Chinese manufacturer provided the technical capabilities needed for the designs, while the broader strategy aims to control costs and recover market share.
Production flexibility and recovery
Luxury provenance and brand risk
Reason for Chinese manufacturing
Production flexibility and recovery
Gucci says the selected Chinese partner had the technological know-how and capabilities needed to meet the sneakers’ performance and quality standards.
Luxury provenance and brand risk
Analysts argue that moving away from Gucci’s Italian manufacturing tradition creates tension with the luxury positioning the brand is trying to rebuild.
Price and shopper appeal
Production flexibility and recovery
Lower-priced products and controlled production costs could help Gucci attract price-sensitive aspirational shoppers and regain market share.
Luxury provenance and brand risk
Price cuts and China-made products could make customers question whether Gucci products still justify their luxury prices.
Effect on Gucci’s identity
Production flexibility and recovery
Gucci says Italy will remain central to its manufacturing model and notes that it has previously used Swiss and Japanese suppliers for products such as watches and eyewear.
Luxury provenance and brand risk
Critics say the “Made in China” label could trigger a backlash and undermine the value associated with “Made in Italy.”
Key facts
- Products
- The Drip and another leather slip-on sneaker carry “Made in China” labels.
- Drip price
- About €800 in Europe and $1,000 in the United States.
- Manufacturing position
- Gucci says Italy remains at the heart of its manufacturing model and identity.
- Sales decline
- Gucci’s sales have halved over the past three years.
- Store strategy
- Kering has closed dozens of Gucci stores, according to the article.
- Parent company
- Gucci is Kering’s flagship brand.
- Design timing
- The Drip was launched as part of Demna’s Primavera collection last month.
Quotes
Berenberg analysts
Analysts who assessed Gucci’s manufacturing and brand-positioning strategy
“We think this creates a potential tension between provenance and the luxury positioning Gucci is seeking to reclaim”
telegraphindia.com
Simon Whitehouse
Milan-based luxury business consultant
“Made in China is not a good look”
telegraphindia.com
Carole Madjo
Barclays analyst
“Some people are wondering: should we keep buying Gucci if the price is coming down? Having Chinese-made products could fuel the debate around the brand’s price value equation.”
telegraphindia.com
Sources
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