Gucci Sells “Made in China” Sneakers, Raising Questions Over Luxury Prestige

Gucci has begun selling new luxury footwear labelled “Made in China,” a departure from its Italian heritage that analysts warn could threaten its prestige as it tries to win back aspirational middle-class buyers.

The move highlights the balancing act facing designer Demna, who must launch fresh designs while managing costs. He unveils his newest collection at a Milan runway show on Friday.

Demna’s Drip Sneaker Carries “Made in China” Label at €800

The stakes are high for parent company Kering and CEO Luca de Meo, who stepped in last year to orchestrate a recovery, only to see an initial share rally fade. Gucci, Kering’s main revenue driver, has seen sales fall 50% in three years, forcing store closures.

The shoe in question is Drip, an avant-garde laceless sneaker priced at about €800 in Europe and $1,000 in the US, below many Gucci shoes. A leather slip-on is also made in China because of technical demands.

All other footwear with an origin tag is made in Italy. Gucci said Italy will “always be at the heart” of its manufacturing, comparing the move to its use of Swiss and Japanese specialists, and plans no wider shift.

Berenberg analysts see a tension between provenance and luxury positioning, and consultant Simon Whitehouse said “Made in China is not a good look.” Gucci has also cut some prices, raising questions about its value equation.