Gucci begins selling China-made sneakers — Channel NewsAsia

In China, Gucci is producing new sneaker models bearing the Made in China label, moving away from its tradition of manufacturing footwear in Italy. As Channel NewsAsia reports, the company said it chose a Chinese manufacturer because of its technological expertise and ability to ensure the required quality standards.

New Primavera models

One of the models is Drip — Demna’s first sneaker model for Gucci, which went on sale last month as part of the Primavera collection. The laceless shoes are made of nylon, canvas or suede. In Europe, the model sells for around 800 euros, and in the United States for $1,000.

Another laceless leather model from the same collection also bears the Made in China label. A Gucci representative explained its production in China by the technical features of the design. All other Gucci footwear models for which the country of origin is listed on the website are made in Italy.

More current news is available on the UA.News Telegram channel Telegram.

The company’s position and analysts’ reaction

Gucci stressed that Italy “will always be at the heart of Gucci’s manufacturing model and identity.” The company added that it had previously worked with Swiss and Japanese suppliers to produce watches and eyewear. A brand representative said there are no broader plans to move Gucci production outside Italy.

Berenberg analysts believe that producing some goods outside Italy could create tension between a product’s origin and Gucci’s efforts to restore its premium positioning. Milan-based luxury consultant Simon Whitehouse called the Made in China label disadvantageous for the brand’s image.

Sales of Gucci, the flagship brand of the Kering group, have halved over the past three years, putting pressure on margins and forcing the group to close dozens of stores. Two Kering sources told Reuters that the brand has also begun cutting prices on certain products, including in China, in an effort to regain market share.