Gucci to manufacture sneakers in China instead of Italy for the first time

Gucci has decided to produce certain sneaker models in China instead of Italy to leverage specific manufacturing expertise. This move has drawn criticism from analysts who fear it may undermine the luxury brand's exclusive image during a period of declining sales.
Luxury fashion house Gucci has announced that it will manufacture specific sneaker models in China for the first time, departing from its traditional reliance on Italian production. The affected items include the new Drip model designed by creative director Demna and a leather slip-on shoe. Parent company Kering stated that this decision was driven by the specialized manufacturing expertise required for these designs, comparing the move to their existing collaborations with Swiss and Japanese suppliers for watches and eyewear. The brand emphasized that Italy remains central to its identity and overall production strategy.
However, market analysts suggest that this shift could threaten the brand's exclusive image, which is already under pressure due to three years of declining sales and a series of store closures. The luxury sector is currently facing broader economic challenges, reflected in the falling share price of Kering. This development comes as the company prepares for a significant fashion show in Milan, where leadership hopes to stabilize the brand's performance.
Based on reporting by nu. Translated and condensed by LocalHeadlines.

