Gucci's China Manufacturing Shift
Gucci Breaks Longstanding Italian Tradition by Manufacturing New Sneakers in China
Anonymous
Key Points
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The Drip is a laceless, sock-like sneaker, echoing the viral streetwear sneakers Demna designed at Balenciaga; Gucci describes it as his first sneaker for the house.
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The Drip went on sale last month as part of Demna’s Primavera collection and is priced at about €800 in Europe and $1,000 in the United States.
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A second slip-on leather sneaker from the same collection is also labelled “Made in China”; Gucci’s website lists other shoes with country-of-origin labels as made in Italy.
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Kering’s CEO Luca de Meo took over last year to lead a turnaround, but an initial rise in the company’s share price has since stalled; the sales slump has also led the group to close dozens of stores.
Gucci has broken with Italian tradition by selling China-made sneakers, marking a significant shift for the luxury brand. The Drip, a laceless sock-like sneaker designed by artistic director Demna, carries a "Made in China" label—a first for Gucci's signature footwear. Yahoo reports that a second slip-on leather sneaker from the same collection is also made in China, while Gucci maintains that Italy will remain central to its manufacturing identity.
The move comes as Gucci faces a sharp sales downturn, with revenue roughly halved over three years. Priced at about €800 in Europe and $1,000 in the United States, the Drip reflects designer Demna's effort to create distinctive, competitively priced products for price-conscious luxury shoppers. Gucci says it chose the Chinese supplier for technical expertise and quality, but industry observers warn the decision could weaken the brand's luxury image.
Demna's First Sneaker Echoes His Balenciaga Success
The Drip is a laceless, sock-like sneaker that echoes viral streetwear designs Demna created at Balenciaga before joining Gucci. Yahoo reports the sneaker went on sale last month as part of Demna's Primavera collection, marking his first sneaker design for the house. The silhouette appeals to younger, trend-conscious buyers seeking statement footwear at accessible price points within the luxury market.
A Turnaround Strategy for a Struggling Luxury Brand
Gucci's sales crisis has forced leadership to rethink production and pricing strategies. Yahoo notes that Kering's CEO Luca de Meo took over last year to lead a turnaround, but an initial share price rise has since stalled. The group has closed dozens of stores as Gucci attempts to reclaim momentum in a highly competitive luxury market.
Demna's mandate includes creating products that balance Gucci's luxury heritage with commercial viability. By producing the Drip in China, Gucci gains cost advantages while maintaining the €800 price point. This allows the brand to offer trendier designs without fully abandoning premium positioning—a delicate balance the turnaround depends on.
Why China Manufacturing Raises Questions About Gucci's Identity
For decades, Gucci built its prestige on Italian craftsmanship and "Made in Italy" labels. The shift to Chinese production marks a departure from this core identity, raising concerns among luxury observers. Industry analysts warn that moving manufacturing offshore could erode the exclusivity and heritage that justify premium pricing among discerning consumers.
Gucci's statement that Italy will remain central to manufacturing offers limited reassurance—most other shoes on the brand's website still carry Italian labels. The company insists there are no broader plans to shift production abroad, suggesting the China sneakers are a calculated exception rather than a wholesale strategy change. However, this explanation may not satisfy purists who view "Made in Italy" as essential to Gucci's luxury brand promise.
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