Melanie Flouquet's questions to Brunello Cucinelli S.p.A./ADR (BCUCY) leadership • Q1 2019
Question
Melanie Flouquet questioned the strategy behind capping China's contribution to revenue at around 20-30%, asking why the company would not push for a higher share similar to competitors.
Answer
Executive Brunello Cucinelli stated that the strategy is to protect the brand's long-term exclusivity and global appeal. He expressed concern that allowing one market to become too dominant could compromise the universal taste of the collections. The goal is to maintain a balanced geographic mix, with revenues split roughly evenly between North America, Europe, and China. This managed growth approach, targeting 8% annually, is designed to ensure the brand's longevity and avoid commoditization in a highly connected market.