Gucci declares it will not abandon “Made in Italy” amid US tariff storm

(Dan Tri) - Facing tariff pressure from the US, Kering affirms that it will not move production out of Europe, protecting the soul of the luxury brand even though prices may increase.

For millions of fashionistas , a pair of Saint Laurent shoes is more than just an item, it’s a statement. Like the iconic patent leather Tribute heels, with their bold yet elegant lines, they encapsulate a story of master craftsmanship, timeless style and French heritage.

Luxury empires like Kering—the giant behind Gucci, Saint Laurent, and Bottega Veneta—understand this better than anyone. They don’t just sell products; they sell a piece of the dream, a piece of European culture. The idea that an item made in France or Italy carries an intangible value, a promise of quality and class that customers are willing to pay for.

And it is here that the red line is drawn.

Uncompromising declaration of war

As President Donald Trump continues to talk about imposing sweeping new tariffs on goods from the European Union, the luxury world has been holding its breath. Will brands bow to political pressure and move production to the US to avoid sanctions?

The response from Kering CEO François-Henri Pinault came as a resounding statement. Speaking to French lawmakers, he quashed any speculation: "It makes no sense to produce Italian Gucci bags in Texas."

“We are selling a part of culture, be it Italian or French culture,” Pinault said on a conference call with investors. “So we have no plans to change production to deal with tariffs. That doesn’t make sense for my clients.”

This is not just a business statement; it is a philosophical declaration of war. Kering insists that the soul of the brand cannot be compromised. Moving production out of Europe to avoid tariffs would be like stripping luxury consumers of the core value they seek.

Pinault frankly admitted that the company is too familiar with operating in markets with high import tariffs like China and will not disrupt the entire supply chain that has made its name because of one threat.

Kering CEO affirms that Gucci and other brands will absolutely not move production to the US to deal with Mr. Trump's tariffs (Photo: Getty).

"Steel" statement in the midst of financial storm

Kering’s persistence is all the more remarkable given that it comes at a particularly difficult time for the group, which is struggling with a sharp decline in sales amid a slowdown in the global luxury market. The group’s revenue has fallen significantly, largely due to the decline of its flagship brand Gucci, according to its most recent financial report.

Gucci, which accounts for more than half of Kering’s sales and about two-thirds of its profits, has seen a sharp decline in revenue. Its first-quarter 2024 financial report showed that the brand’s revenue fell 21% year-on-year to €2.1 billion. The situation was even worse in the fourth quarter of 2024, when sales fell 24%.

Saint Laurent also recorded an 8% drop in revenue in the first quarter of 2024. Overall, Kering group revenue in the first quarter of 2024 fell 11% year-on-year to 4.5 billion euros.

The sales decline was particularly severe in the Asia- Pacific region, a key market for Kering, suggesting that rebranding efforts, particularly at Gucci with a change of creative director, have yet to win back consumers.

To cope, Kering is having to "tighten its lineup", including closing underperforming stores.

Gamble on heritage

So what will Kering do if the worst-case tariff scenario comes to pass? François-Henri Pinault isn’t shying away. He admits the company may have to “reconsider its pricing strategy.” Put simply: If tariffs are imposed, it’s likely that American consumers will have to bear the cost through higher prices.

It’s a risky gamble. On the one hand, Kering is protecting what it believes is its most valuable asset, its heritage. It’s betting that loyal customers will understand and pay more for an “authentic” product. On the other hand, raising prices in a time of economic hardship and weak purchasing power could alienate a significant portion of its customers.

Kering’s message is a valuable lesson in perseverance in a volatile world. They’ve chosen the hard way, prioritizing elegance and the enduring value of heritage over short-term political considerations. In a world that’s constantly tempted by shortcuts, Kering is betting that the only thing that will never go out of style is identity. And it’s a gamble they can’t afford to lose.

Source: https://dantri.com.vn/kinh-doanh/gucci-tuyen-bo-khong-roi-bo-made-in-italy-giua-bao-thue-quan-my-20250606223208511.htm