Brunello Cucinelli

International Strategy

Brunello Cucinelli has a strong international presence, operating in over 60 countries in all five continents. International sales, in fact, account for 80.8% of the total sales volume. None of these countries manages production, which remains firmly located in Italy and managed through the network of small manufacturers we have already examined. Therefore, the company implements an international strategy that is aimed to leverage domestic competences to sell the same products all over the world. This strategy is in line with the company’s mission and business model, directed to enhance the value of Made in Italy by offering the market high quality, handmade products that reflect the unique Italian style.

Not all the stages of the value chain are managed by the corporate, as distribution and sales are managed locally. In order to do so six main geographical subsidiaries have been set up: one for Europe (who further controls 16 different subdivisions, most of them country-specific), four for Asia (Japan, Sichuan, Macao and Hong Kong) and another one for the US. Distribution consists of two main channels: retail stores (also called Directly Operated Stores) and mono-brand wholesale stores. The company has established abroad a total of 59 retail stores (22 in Europe, 17 in North America, 16 in China and 4 in the rest of the world) and 30 mono-brand wholesale stores (19 in Europe, 1 in North America, 3 in China and 7 in the rest of the world). Retail stores are directly controlled by the different subsidiaries, sometimes in collaboration with local companies who own minority shares of said subsidiaries (like in Asia, for instance). Mono-brand wholesale stores, on the other hand, are managed by local intermediaries through franchising agreements. In addition, Brunello Cucinelli’s products are also sold in over 600 prestigious multi-brand department stores located in the biggest and most important cities in the world. Based upon all this, the...