The luxury cashmere house of Brunello Cucinelli has become a shining example of how to do business right. The Italian billionaire has not only made a name for himself by providing customers with exquisitely crafted cashmere garments, but he has also taken care to ensure that his workers and suppliers benefit from his success. This is an extraordinary feat in an industry that is known to post eye-popping profit margins. And investors have taken notice, as the company’s shares have increased about 10-fold since listing in Milan in 2012, far outperforming the MSCI Europe Textile Apparel and Luxury Goods Index.
At Brunello Cucinelli, the focus is on sustainability and doing the right thing. This is exemplified in a range of cashmere garments that are priced from €13,500 for a curly shearling cape to €800 for a cashmere hoodie. But the real story is the attention to detail that goes into how the company does business. This includes providing better pay and better working conditions for its workers and suppliers.
The result is a company that is not only profitable, but one that is also taking care of its own. This is a rare combination in the industry, and one that has been well-received by investors. In fact, the company’s stock has outperformed the MSCI Europe Textile Apparel and Luxury Goods Index by a wide margin.
Brunello Cucinelli is a shining example of how to do business right. The Italian billionaire has not only made a name for himself by providing customers with exquisitely crafted cashmere garments, but he has also taken care to ensure that his workers and suppliers benefit from his success. This commitment to sustainability and doing the right thing has paid off for the company, as investors have taken notice of the company’s success.
Source: www.bloomberg.com