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Cucinelli dismisses concerns about China's wealth policy

Cucinelli dismisses concerns about China's wealth policy

FILE PHOTO: A Brunello Cucinelli label is seen on a shirt at the factory in Solomeo village near Perugia, Italy, September 4, 2018. Picture taken September 4, 2018. REUTERS/Alessandro Bianchi/File Photo

MILAN: Brunello Cucinelli, the chairman of the eponymous luxury goods group, said on Thursday he was not worried about recent wealth re-distribution comments made by the Chinese president that triggered a sell-off in the sector's stocks.

At a meeting of the Communist party earlier this month, President Xi Jinping stressed the importance of "common prosperity" and said Beijing aims to "rationally adjust excessively high" incomes. This has led some analysts to predict a possible backlash against luxury goods, of which Chinese shoppers are the biggest buyer.

"I honestly believe it (China) will be the market for the next 100 years," Cucinelli said, adding he was not worried at all by the Chinese leader's words and instead shared the belief that incomes needed to be fair.

Cucinelli, known for its US$1,000-plus cashmere sweaters, makes around 15 per cent of its sales in China, compared to more than 45 per cent for some of its luxury rivals, and expects to grow that share to 20 per cent in a year or two, he said.

Source: Reuters/ec

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