As luxury bears the brunt of China’s shifting consumer landscape in a time of economic uncertainty, one of the brands that continues to grow and expand is the Italian luxury fashion house Brunello Cucinelli. Brunello Cucinelli’s global revenue increased 9.2% year-on-year (YoY) in Q3 and 14.1% in H1 2024, earning 300 million EUR (325.74 million USD) and 6.21 million EUR (671.88 million USD), respectively. The question is, of course, how does the relatively lesser-known brand, best known for its cashmere-wear outgrow its much larger rivals?
China, of course, is a large part of that answer, and the brand knows it as it mentions the market as one of its successful regions for its high-end, ready-to-wear collections. Soon after Shanghai Fashion Week Spring/Summer 2025 concluded, the Italian brand brought its first fashion show in Shanghai to Zhangyuan (张园, lit. the Zhang Garden) in Jing’an District. The event, called A Oriente, was much more than just a fashion show but rather like a gala and a celebration of the brand.
Not only did the founder, executive chairman and creative director Sig. Cucinelli attend the event in person, the night was also graced by Italian ambassador Massimo Ambrosetti and Italy’s consul general to Shanghai Tiziana D’Angelo, as well as celebrity friends of the brand such as Chinese actress Zhang Ziyi and Korean actor Park Sung-hoon, and many VICs. Cucinelli visited Tongji University in the city for a half-day conference called “Heritage Reimagined: Symposium on the Revival of Cultural and Architectural Heritage” to discuss the brand’s commitment to deeper cultural dialogue in the China market.
Both LVMH and Kering recorded decreased earnings in Q3 2024, down 5% and 15%, respectively. Both cited China as the reason for the negative growth. Brunello Cucinelli’s growth is all the more impressive as larger groups face headwinds in the market.
Founder Cucinelli argues that luxury is not facing difficulty but working through a “rebalance” in the post-pandemic world. Brunello Cucinelli’s quick growth and expansion started with the post-pandemic need for quiet luxury. The brand has also recently slowed down with its expansion as its act of “readjustment” and “rebalance”. Also, he argues against seeing China as the make or break for luxury brands, and he still has belief in the market’s potential. In the age of “quality consumption” and “emotional value”, it is important for a brand to provide a resonating narrative to Chinese consumers. The refocus in China, signalled by the Shanghai event, might be another step for Brunello Cucinelli in this direction.
