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

His success is crucial for parent Kering and CEO Luca de Meo, ​who took over last year to lead a turnaround but has seen an early share price bounce fall flat this year.Gucci, Kering's flagship ​brand, has seen sales halve over the past three years, squeezing margins and forcing the group to close dozens of ⁠stores.In a move reminiscent of his tenure at Balenciaga, Demna has created a futuristic sneaker….

The shoe is labelled as "Made in China", according ​to Gucci's website.

Reuters also observed Drip models displayed in a Gucci store in Paris carrying the same label.In a statement, Gucci said that Italy would "always ​be at the heart of Gucci's manufacturing model and identity" but that it had decided to work with the Chinese manufacturer just as it had worked with Swiss and Japanese suppliers for products like watches and eyewear in the past."The partner selected offered the technological know-how….

Photo/ReutersThe laceless design is made from nylon, canvas or suede.The Drip is a break from Gucci's more traditional white leather laced Ace sneakers, and its sock-like shape is reminiscent of Demna's chunky sneaker designs at Balenciaga, which were a streetwear hit in the late 2010s.A second slip-on sneaker model, made of leather, from the same Primavera collection is also labelled as "Made in China", the Gucci website shows.

The brand spokesperson said ​that model was produced in China ​for similar technical reasons linked to ⁠the shoe's design.All other Gucci shoes carrying a country-of-origin label on the website are made in Italy.China is a global hub for sneaker production, and its manufacturers have earned strong reputations among mass-market and premium brands.

Some analysts say ​that in Gucci's case, however, breaking with "Made in Italy" could spark a backlash."We think this creates a potential tension ​between provenance and the ⁠luxury positioning Gucci is seeking to reclaim," Berenberg analysts said in a note.Simon Whitehouse, a Milan-based luxury business consultant, was more blunt.

"Made in China is not a good look," he said.Two Kering sources told Reuters the brand has also begun cutting prices on a select number of products, including in China, as part of efforts to ⁠regain market ​share.Barclays analyst Carole Madjo said the price cuts surprised some investors, who are now paying increased ​attention to any further moves that could affect Gucci's image with shoppers."Some people are wondering: should we….

"Having Chinese-made products could fuel ​the debate around the brand's price value equation."

Gucci's new 'Made in China' sneaker models break with Italian tradition Reuters | Updated 1 minute ago | Demna's first Gucci sneaker, the Drip, carries a 'Made in China' label as the brand chases price-sensitive shoppers.