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Italian luxury fashion house Ferragamo has done business the old-fashioned way for decades with the factories that make its goods - "a firm handshake and a look in the eye".

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[L 2007, c 48, 2] Business on a handshake fits Ferragamo just fine - Italian luxury giant's old-fashioned way of operating won't change despite cost pressures to shift factories to China.

We have many factories that produce exclusively for Ferragamo.

The agreement is a handshake, a look at them in the eyes, but no contract." Such an arrangement, he argued, was time-tested and a win-win formula because Ferragamo could walk out when the factories failed to perform, and the factories did not have to worry about losing contracts to others because the partnership would continue indefinitely.

"Their problem is our problem because they are our factories," he said.