Gucci cuts prices, but will Chinese shoppers return?

What happened Gucci has cut prices on a selection of handbags and ready-to-wear in China, reversing the direction that has defined luxury pricing for much of the post-pandemic period. The Spring/Summer 2026 Mercato small tote has fallen from 25,500 RMB ($3,800) to 20,000 RMB ($2,980), a reduction of roughly 22%, while the Ophidia mini bucket bag is now 8,700 RMB ($1,300) after a 3,600 RMB ($540) cut, or about 29%. Selected dresses, swimwear and knitwear have also been reduced by around 30%. On September 8, Gucci’s official customer service confirmed the adjustments, saying: “The brand periodically adjusts product prices based on a range of market factors. Current prices can be confirmed through our official channels.” The company did not disclose the specific reason behind this round of reductions. Bernstein and Mertico data showed sales at sampled mainland luxury malls falling 12% year-on-year in July across price points and categories, prompting Bernstein to lower its third-quarter luxury growth forecast from 6.3% to 4.9% and its 2026 forecast to 5.1%. Gucci itself has been improving but remains under pressure: first-half revenue fell 5% on a comparable basis, while Kering said mainland China remained challenging despite better second-quarter results. The Jing Take For much of the past decade, luxury groups could raise prices faster than inflation and count on consumers to absorb the increase. That strategy is becoming harder to sustain in China, where shoppers are scrutinizing whether products still justify their price tags. Gucci’s reductions are therefore less notable for making certain bags cheaper than for acknowledging that the prices of some parts of its assortment may have moved ahead of demand. Early reactions on Chinese social media suggest that cutting prices will not automatically unlock purchases. On Weibo, Old Zhong Hu Ken (@老中胡啃) wrote, “Even rich people can’t afford it anymore.” On Xiaohongshu (also known as RedNote), User Deactivated (@用户已注销) posted that “a few years ago, many Gucci products only cost a few thousand yuan,” pointing to how clearly consumers remember the brand’s previous price levels. Other users interpreted the reductions as a reason to keep waiting. Xiaohongshu user Nan You Isn’t Home (@楠友不在家) wrote, “If you don’t buy and I don’t buy, it could be even cheaper tomorrow,” a comment that attracted thousands of likes and saves. That sentiment also appeared in a small Xiaohongshu poll under a post by Cailian Press (@财联社): among 15 respondents, seven said they would “snap one up,” five chose “wait a little longer, it may fall again,” and three said they still would not buy because Gucci remained expensive. In a separate poll by LuxIntel Think Tank (@LuxIntel智库), 22 of 28 respondents said Gucci should lower prices, versus six who disagreed. The samples are small and not representative, but they illustrate one of the risks of reversing years of price increases: consumers may start wondering whether another reduction is coming. The more difficult competition may be coming from outside fashion altogether. Xiaohongshu user Bei Bei (@邶邶) described being given a 40,000 RMB ($6,000) budget by her husband while he was travelling in Hainan: “He asked whether I wanted a bag or a gold bracelet. I chose the gold bracelet without hesitation.” As Chinese consumers become more selective, gold and jewelry offer a comparatively straightforward value proposition through precious materials, longevity and perceived asset value. For Gucci, making a handbag cheaper may narrow the price barrier, but it does not by itself answer the more fundamental question of why that handbag deserves 20,000 RMB ($2,980) today. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Gucci cuts prices, but will Chinese shoppers return?

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Gucci cuts prices, but will Chinese shoppers return?

How Bottega Veneta weaved China’s forever it bag