Gucci's new 'Made in China' sneaker models break with Italian tradition

Gucci has begun manufacturing new sneakers in China, deviating from its long-standing Italian production tradition, as part of efforts to boost sales and appeal to a broader range of customers. The move, spearheaded by designer Demna, aims to create innovative and cost-effective products to attract the majority of luxury consumers who are more price-sensitive.

Demna's latest sneaker model, Drip, is manufactured in China and labelled as "Made in China," reflecting the brand's decision to seek the most technologically advanced and capable manufacturers for specific product needs. Gucci's CEO, Luca de Meo, is under pressure to turn around the struggling brand, which has seen sales halve over the past three years, leading to the closure of numerous stores.

While Gucci emphasizes that Italy will remain central to its manufacturing model and identity, the brand has chosen to work with Chinese manufacturers when it deems their technology and capabilities best suited to meet specific performance and quality standards. The Drip sneaker, priced at around €800 in Europe and US$1,000 in the United States, is a departure from Gucci's traditional white leather laced Ace sneakers, featuring a futuristic design and a lower price point.

However, some analysts warn that the brand's shift to "Made in China" products may create tension between Gucci's desire to maintain its Italian heritage and its efforts to appeal to a broader, more price-sensitive customer base.