"Gucci Begins Selling 'Made in China' Amid Slumping Sales... What’s Behind Luxury Shoes Priced at 1.2–1.3 Million Won?"

Some New Sneakers and Other Products Now Labeled as Made in China
Gucci Emphasizes “No Change to Overall Production Plans”
Analysts Suggest Possible Impact on Brand Image

Italian luxury brand Gucci has made the unusual move of selling shoes produced in China, drawing significant attention from the industry regarding how this may impact the brand's manufacturing strategy and luxury image.

On September 24 (local time), foreign media reported that Gucci has recently started selling certain shoe products—including its new sneaker, "Drip"—with a "Made in China" label. This label has reportedly been confirmed on Gucci's official website and at its Paris store in France.

Drip, the first sneaker unveiled by Gucci's creative director Demna, features a slip-on sock-like design crafted from nylon, canvas, and suede. It was released last month as part of the Primavera collection, with a price tag of approximately 800 euros (1,230,000 won) in Europe and about 1,000 dollars (1,350,000 won) in the United States. Leather slip-on sneakers from the same collection are also labeled as "Made in China."

In contrast, most other shoe products with specified origins on Gucci's website are marked as "Made in Italy."

Gucci's new sneakers "Drip". Screenshot from Gucci Instagram

China is one of the world's major production hubs for sneakers, with manufacturers not only producing mass-market items but also premium products thanks to their technological capabilities. However, Gucci clarified that production in China is limited to a few shoe models, and this should not be interpreted as a wholesale shift in its overall manufacturing strategy. The company also emphasized that this decision was not simply about reducing production costs.

Gucci stated, "Italy will continue to play a central role in our manufacturing model and brand identity." The company explained that the selection of a Chinese manufacturer for this design was based on the specific technical skills and manufacturing capabilities required to realize it. Gucci compared this to leveraging Swiss and Japanese companies for certain products such as watches and eyewear. A Gucci spokesperson also added, "There are no plans to move overall production outside Italy."

Nevertheless, as Gucci has long promoted Italian craftsmanship and manufacturing as core elements of its brand identity, industry observers warn that this shift could affect Gucci's brand image and pricing policy. Analysts at the German investment bank Berenberg, which specializes in evaluating listed companies' performances, business strategies, and market conditions, predicted, "Switching the production site of certain products from Italy to China could create potential tension between the 'origin of production' and the 'luxury brand image' that Gucci is seeking to restore."

This decision also ties into Gucci's current business strategy, as the company has faced weak performance lately. According to foreign media, Gucci's sales have dropped by approximately half over the past three years, prompting its parent company Kering to implement restructuring measures such as reducing the number of stores. Gucci has also recently been moving to lower the prices of certain products.

This content was produced with the assistance of AI translation services.