Reuters
source: Reuters
Gucci has begun selling new luxury sneaker models labelled “Made in China”, a break with its Italian manufacturing tradition that some industry watchers say could undermine the brand’s high-end image as it races to win back middle-class shoppers.
The move highlights the challenge facing Gucci designer Demna, who must create innovative products while keeping costs under control to attract so-called aspirational shoppers, the bulk of luxury consumers who are more price-sensitive than the super-rich.
Demna will present his latest collection at a Milan runway show on Friday. 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 model called Drip. 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.
