Interview with Brunello Cucinelli, King of Cashmere
pi.co
pi.co
I visited the company twice, and I am good friend with someone who is very close to him.
I know many details, some of which I won't reveal as I don't know if they are supposed to be revealed; but in general, I have a very high opinion of Brunello Cucinelli and his work.
One thing that I particularly appreciate is the fact that he tries to "elevate" his workers, from a cultural standpoint, at every occasion.
Years ago, when tensions between Christianity and Islam were rising, Brunello gave a Koran as a present to everybody, saying something like "we should know them better; if we do, we will stop being racists and we will understand that we are all human beings".
He invests millions of euros a year in cultural projects, or invites famous actors or thinkers or philosophers to give a lecture to his workforce.
Another episode that I love is that, when the company does well financially, he voluntarily decides to distribute thousands of euros to each employee as a present.
I have never bought any of his product, as they are extremely expensive. I know several people which own his cashmere, and they all rave about it. If you like to invest thousands of euros in clothing, then his products are fine. My upper threshold has been in the few hundreds, and only for a few selected ones.
Last, but not least, everybody talks about and knows Tuscany, but Umbria is really a hidden jewel. As always, when you visit Italy or any other foreign country, keep your eyes open, as there's always someone trying to take advantage of you, especially if you're American or Japanese (trust me, American or Japanese tourists are considered to be the "easiest" to take advantage of).
If you like Brunello's style of management, you should also read about Adriano Olivetti. If Olivetti didn't die prematurely, there would be a non-zero chance that instead of talking about Intel today, we would be talking about Olivetti.
Cucinelli seems focus on the entire dynamic of what a product is; considering everything from how it was made, what it is made of, how it is sold, and how long it lasts long after it is purchased. This type of care for the ecosystem of commerce is so incredibly rare I can't help but applaud the man and what he and his workers have accomplished. But what he has truly done is make a product that is an icon -- something to be purchased for all those dynamics and maintains its value even for the 2nd and 3rd owner.
"There are some companies that give a lot of their money to charity. I’m not interested in that. Because first of all I want to see how they make their profit in the process. It is meaningless that they make a huge profit and then do charity."
His clarity, but lack of cynicism makes an environment that I would aspire to be a part of some day. Honest, yet hopeful.
Also consider the psychological pricing -- maybe he could cut his sweaters to $599, or $299 (but not much lower than that) -- but likely still be way out of the "I dont pay more than $49.99 for a sweater" crowd. So then he'd be leaving a ton of money on the table for fractional growth.