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Gucci is facing backlash for trying to get cheap with production costs, but the price tag isn’t changing

Gucci has started selling its newest sneakers with Made in China labels, breaking from the Italian manufacturing tradition that has long defined the brand. The label appears on the Drip, Demna’s first sneaker for the house, according to Reuters. Gucci says the choice came down to technical capability, as the brand fights to recover from a steep sales decline.

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The Drip is a laceless, mid-high shoe that blends a minimalist basketball sneaker with the convenience of a loafer. It comes in nylon, GG canvas, and suede, with the U.S. website listing a red nylon version at $980. European prices sit between €800 and €820.

The brand’s website also lists at least one other design, a leather slip-on sneaker, with the same Made in China designation. Every other Gucci shoe on the site that lists a country of origin carries a Made in Italy label. In its own supply chain documentation, the company notes that 95% of its manufacturers are based in Italy.

Gucci says a Chinese factory simply had the know-how it needed

Gucci told reporters it picked a Chinese supplier for the Made in China models as it needed specific technical expertise to build these designs. The company compared the move to its use of Swiss and Japanese suppliers for watches and eyewear, and a spokesperson added that there are no broader plans to move production out of Italy.

China is a global sneaker production hub, and its manufacturers have strong reputations among mass-market and premium brands. However, the optics are proving harder for Gucci to manage. Milan-based luxury consultant Simon Whitehouse did not soften his view of the label. “Made in China is not a good look,” he said.

Berenberg analysts warned in a note that the move creates potential tension between the shoe’s provenance and the luxury positioning Gucci is trying to reclaim. At nearly $1,000 a pair, buyers are paying for Italian craftsmanship as much as the materials. A Made in China label could make that price harder to justify.

The timing adds to the pressure, as Gucci’s revenue fell from €9.87 billion in 2023 to €5.99 billion in 2025, a 39% drop in two years. The decline eased in the second quarter of this year, but the brand’s sales are still shrinking. Kering, its parent company, has closed dozens of stores as part of its turnaround.

Two Kering sources said the brand has also started lowering prices on selected products, including in China, to regain market share. However, the cuts surprised some investors, as price is usually a key signal of exclusivity in luxury. Barclays analyst Carole Madjo said Made in China products could fuel the debate over whether Gucci’s prices still match its value.

Demna’s chunky sneakers at Balenciaga became a streetwear hit in the late 2010s, and the Drip borrows that same sock-like shape. He is chasing that level of hype while Gucci tries to restore its premium image. Earlier this year, the brand also drew criticism for AI-generated promotional images that clashed with its craftsmanship message.

Demna is set to present his latest Gucci collection at a Milan runway show on Friday, while the brand insists Italy will stay at the heart of its manufacturing.


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Image of Asmir Pekmic
Asmir Pekmic
Asmir is a gaming writer with 16 years of experience covering the video game industry, specializing in news, guides, and live-service games. When he’s not writing or playing video games, he enjoys running and playing basketball.