Brunello Cucinelli, the King of Cashmere … runs his Italian luxury design house in a fascinating way … including the 8-6 rule, the 20% system, and a 1000-year project
August 24, 2023
Brunello Cucinelli, known as the King of Cashmere, runs his Italian luxury design house in fascinating way.
The Italian fashion designer and the founder of the luxury cashmere brand that bears his name. Born on September 3, 1953, in Castel Rigone, Italy, Cucinelli is renowned for his elegant and sophisticated designs, particularly in the realm of knitwear.
What sets Cucinelli apart is not just his focus on high-quality materials and craftsmanship but also his commitment to ethical and sustainable business practices. He’s often referred to as the “philosopher of cashmere” because of his unique approach to blending business success with humanistic values. His company, Brunello Cucinelli S.p.A., is known for creating luxurious and timeless pieces, with a strong emphasis on using natural fibers.
Cucinelli founded his company in 1978 in the medieval hamlet of Solomeo, Italy. Today, the brand is internationally recognized and has expanded beyond cashmere to include a range of clothing and accessories. His designs are often characterized by neutral tones, fine tailoring, and a sense of relaxed sophistication.
Beyond the fashion world, Cucinelli is known for his philanthropy and dedication to social responsibility. He has invested in restoring the village of Solomeo, turning it into a hub of art, culture, and craftsmanship. His holistic approach to business, blending elegance with ethics, has garnered him respect and admiration in the fashion industry and beyond.
Luxury is independent of time: In his first shareholder letter published in English, Brunello talks about the luxury pyramid, and its positioning:
The 8-to-6 Rule: The first example of the unique corporate culture is the very strict working hours. No work related emails or phone calls can be done after 6 o’clock, and 90-minute lunch breaks are obligatory:
Company Guardianship: Brunello is the majority shareholder, and the main reason he took the company public in 2012 was to make sure that it would survive for the next 50 or 100 years:
The +20% System: BC pays their workers, on average, 20% more than other companies to retain world-class talent and ensure them good living standards:
The company is also very careful with growth, and speak a lot about the importance of “not being too widely distributed” as an absolute luxury brand:
Although, despite this careful growth framework, BC has grown its revenue and EBIT at ~500% and 1100% respectively since 2009
Brunello uses his personal wealth as well as part of the company’s profits to give back to society. A good example of this is his School of Craftsmanship which he started back in 2013, located in the small Italian hamlet of Solomeo:
Humanistic Capitalism: In every letter, Brunello is preaching about his business philosophy of combining ethics, quality and dignity. Here’s from 2016:
The Honourable Merchant: in 2017, hegot the Global Economy Prize from Kiel Institute for this exact philosophy:
Focus on what you can change: A very nice excerpt from the 2021 shareholder letter:
Here’s another example of Brunello’s long-term thinking and his commitment to society. He calls it a “1000-year project” – the Universal Library of Solomeo (aka “the Hamlet of Cashmere and Harmony”):
In 2021, Brunello was invited to speak at the G20 meeting thanks to his Humanistic Capitalism philosophy. There, he outlined the company’s Ten Ideals for Life and Work:
Read his book “The Dream of Solomeo”, a must read if you want to understand Brunello’s journey and philosophy.
Everyone is familiar with Mark Zuckerberg’s iconic grey t-shirts, but did you know that they are custom made by BC and cost around $300?
More from the blog