Question · Q1 2018
Alberto D'Agnano of Intermonte SIM S.p.A. inquired about Brunello Cucinelli's strategy in China, specifically regarding local consumer tastes, the balance between wholesale and direct retail channels, and the rationale behind the increased dividend payout target.
Answer
Executive Chairman Brunello Cucinelli explained that the dividend policy aims for a 50% payout ratio within two years, viewing it as a fair balance for a well-capitalized company. Regarding China, he emphasized that the growth strategy will maintain a strong wholesale presence, predicting the rise of high-quality multibrand stores. He asserted that Chinese consumers desire the brand's authentic 'Italian taste' and the company will not alter its core aesthetic, focusing instead on maintaining brand identity and quality.