Italian fashion house Brunello Cucinelli has announced a strong quarter as it expands in China.
Though shares of the company have declined 2.6 percent this year in a volatile Italian stock market, the company revealed that sales grew 10.3 percent year-on-year from €355.8 million in 2014, reports Financial Times. In greater China and North America, the company saw double-digit sales growth, and the growth-rate in European sales was robust at 8.2 percent due to “top-end tourism” and and big sales “in leading cities and resorts.”
Though luxury brands, including LVMH and Tod’s, saw big declines in China sales during the first nine months of 2014, Luxury spending in China is expected to rise this year, and Cucinelli expects the sales trend to continue into 2015.
Chairman and chief executive Brunello Cucinelli said of the announcement, “We are convinced that this year 2015 might be just as special; we forecast double-digit growth in terms of both revenues and margins, but a gracious growth, as usual.”
The company has the opportunity to thrive over the long term in China. As Chinese consumers have become more sophisticated, they have begun to shun fashion emblazoned with logos in favor of exclusive and unique products.
In The China Luxury Forecast 2015, Ipsos’ executive director Simon Tye said, “Nowadays it is not about having the same product as everyone else, but rather having someone that is unique.” He added, “There is continued strong demand for unique and customized products that retain the heritage of the brand.”
With clothes and handbags that sell for as much as €3,000 that are devoid of conspicuous logos, the company is well-positioned in the Chinese luxury market.
image source: brunellocucinelli.com