Gucci has introduced new luxury sneaker models labeled “Made in China,” marking a departure from its longstanding tradition of Italian manufacturing. This strategic shift has raised concerns among industry experts who fear it could dilute the brand’s premium image as it seeks to recapture middle-class consumers.
The decision underscores the challenge faced by Gucci’s creative director, Demna, who must balance innovation with cost efficiency to appeal to aspirational shoppers—who represent the majority of luxury buyers and tend to be more price-conscious than ultra-wealthy clientele.
Demna is set to unveil his latest collection at a Milan runway show on Friday, a pivotal moment for both the designer and Gucci’s parent company, Kering. CEO Luca de Meo, who assumed leadership last year to spearhead a turnaround, has seen initial gains in the company’s share price stall this year.
Gucci, Kering’s flagship brand, has experienced a dramatic sales decline, with revenues halving over the past three years. This downturn has squeezed profit margins and forced the closure of numerous stores worldwide.
In a move reminiscent of his previous work at Balenciaga, Demna has designed a futuristic sneaker called the Drip. Gucci’s website and observations from a Paris store, the Drip sneaker carries the “Made in China” label.
Gucci emphasized that Italy remains central to its manufacturing identity but explained that partnering with a Chinese manufacturer was a strategic choice based on the supplier’s technological expertise and ability to meet the brand’s quality and performance standards. The company noted that it has similarly collaborated with Swiss and Japanese producers for items like watches and eyewear.
A Gucci spokesperson clarified that there are no plans to shift broader production outside Italy.
The Drip sneaker, described as “Demna’s first sneaker for Gucci,” debuted last month as part of the Primavera collection. Priced around €800 in Europe and $1,000 in the United States, it is more affordable than many other Gucci footwear options, yet remains firmly within the luxury segment. The laceless design is available in nylon, canvas, or suede.
This model marks a departure from Gucci’s classic white leather laced Ace sneakers, featuring a sock-like silhouette reminiscent of Demna’s popular chunky sneaker designs at Balenciaga, which gained streetwear acclaim in the late 2010s.
Additionally, a second slip-on leather sneaker from the same Primavera collection is also labeled “Made in China.” Gucci attributed this to similar technical requirements related to the shoe’s design. All other Gucci shoes listed on the website with country-of-origin labels are produced in Italy.
China is recognized as a global center for sneaker manufacturing, with its factories earning strong reputations among both mass-market and premium brands. However, some analysts warn that Gucci’s break from the “Made in Italy” hallmark could provoke consumer backlash.
Berenberg analysts highlighted a potential conflict between the brand’s provenance and the luxury positioning Gucci aims to restore. Milan-based luxury consultant Simon Whitehouse was more direct, stating, “Made in China is not a good look.”
Sources within Kering revealed that Gucci has also started reducing prices on select products, including in the Chinese market, as part of efforts to regain market share.
Barclays analyst Carole Madjo noted that these price cuts surprised some investors, who are now closely monitoring any further moves that might impact Gucci’s brand perception among shoppers. She remarked, “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.”
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