Chairman, CEO of Ermenegildo Zegna Group on firm evolution, Saudi growth plans
DUBAI: It has been fairly a yr for household agency Ermenegildo Zegna Group. The Italian firm final week introduced it had signed an settlement to enter right into a long-term license for Tom Ford style with the Estee Lauder Corporations.
The information got here as Estee Lauder revealed its acquisition of Tom Ford for $2.8 billion.
In December final yr, the corporate went public on the New York Inventory Trade with a market cap of $2.4 billion. The posh menswear label additionally considerably rebranded, adopting a singular title, Zegna, and a minimalist emblem.
For the heritage model, the long run is as essential as sustaining its Italian roots.
And the group’s chairman and chief govt officer, Gildo Zegna, instructed Arab Information about Zegna’s growth plans for Saudi Arabia.
With the Center East and Africa reporting latest quarterly progress of 86.4 % year-on-year, the area is taken into account a key marketplace for the corporate.
Zegna mentioned: “Our Dubai Mall retailer has turn out to be the benchmark for our enterprise – 30 totally different nationalities store there every day – it’s simply unbelievable.”
With Dubai anticipating 1 million guests for the FIFA World Cup in Qatar, he anticipated it might be a worthwhile month.
And following a visit to Saudi Arabia, Zegna revealed that growth plans for the Center East had been in full swing.
“It was a really thrilling journey – I’m amazed to see the sources the persons are placing into the nation – they wish to make investments sooner or later and modernity.
“The bottom line is to be there with good companions which we’ve got (Al-Malki Group), and I believe we’re going to get nice places and get tremendous busy,” he added.
In 2023, Saudi Arabia will see the opening of two Zegna boutiques, with a number of extra within the pipeline throughout the subsequent three to 5 years in but extra growth for the 112-year-old label.
It was in 1910 when Ermenegildo Zegna established Lanificio Zegna, a wool mill making the best textiles from pure fibers, in his hometown of Trivero, Italy.
The enterprise grew right into a luxurious group together with menswear, Thom Browne, acquired in 2018, and one-of-a-kind Made in Italy Luxurious Textile Laboratory Platform.
On Dec. 20 final yr, Zegna rang the bell on the New York Inventory Trade, making historical past because the agency turned the primary Italian style model to checklist there.
“Going public was most likely the most important and hardest resolution of my life – I used to be placing the agency and the household at stake,” he mentioned.
After a lot analysis and planning, the deal went forward in settlement with Investindustrial Acquisition Corp., a special-purpose acquisition company sponsored by funding subsidiaries of Investindustrial VII L.P.
“I additionally assume that it was one of the best ways to organize the corporate for the following era – with the proper governance and sources,” Zegna added.
The founding household stays main shareholders with a 62 % stake. And this yr’s monetary information would seem to substantiate that Zenga’s transfer was the proper one.
For the third quarter of this yr, the group posted revenues of 357 million euros ($366 million), up 27.6 % year-on-year, taking the revenues for the primary 9 months of 2022 to 1.09 billion euros.
Forward of the preliminary public providing, the corporate rebranded itself by placing all three clothes strains underneath one umbrella.
Zegna mentioned: “We determined to consolidate and have one model – Zegna.”
Model fairness had all the time been a robust focus at Zegna, and the most recent transfer has created a extra streamlined identification for the label, as did its new emblem that includes a double-stripe signifier.
Though recognized for its made-to-measure fits utilizing top-quality materials, the model has branched out into creating luxurious leisure put on underneath the artistic route of Italian dressmaker Alessandro Sartori.
“Earlier than the coronavirus pandemic hit, I known as within the govt committee to launch a brand new undertaking that modified the notion of Zegna from tailoring to luxurious leisure put on – that was the start of a brand new period and doubtless one of many smartest choices I made,” Zegna added.
By specializing in class administration and creating iconic merchandise such because the triple sew sneaker and knitwear, Zegna has turn out to be extra accessible to totally different age teams.
Referring to the overshirt and informal pants he was carrying for the Arab Information interview, the corporate boss mentioned it was the brand new Zegna norm and an strategy that appealed to loyalists and youthful generations.
“It’s about creating glorious merchandise with a recent type in revolutionary materials,” he added.
With its made-to-measure service, the whole lot from sneakers to knitwear, outerwear and fits may be personalized in varied supplies and colours.
This yr, Zegna additionally unveiled an unique partnership with Actual Madrid as its official journey put on companion – a transfer capitalizing on soccer’s rising relationship with excessive style. Dior, Moncler, and Off-White are a number of the different large manufacturers which have signed offers with main soccer golf equipment.
Footballers make influential model ambassadors. Within the Zegna marketing campaign, the Actual Madrid gamers are seen carrying the model’s signature overshirt and triple sew sneakers, highlighting its timeless but up to date strategy to design.
Italian-made menswear apart, its textiles division stays a worldwide benchmark for luxurious materials and one of many firm’s most important progress drivers.
Third-quarter monetary outcomes confirmed textile revenues hitting $31 million, up 33.3 % year-on-year. The agency continues to provide its textiles to a number of the most premium high-end manufacturers, together with Gucci and Tom Ford.
With a vertically built-in provide chain, the model has sturdy management over its suppliers. Final yr, alongside Prada, it acquired an Italian cashmere producer.
Zegna mentioned: “Filati Biagioli Modesto is an organization I purchased with Mr. Bertelli of Prada to ensure we’ve got provide of traceable cashmere that’s changing into very scarce. From sheep to buy, we’re the one luxurious firm that’s absolutely built-in.”
Elsewhere, from its Achill farm in New South Wales, Australia comes the best merino wool, shipped to the agency’s Italian mills after which onto outlets.
He identified that by its provide chain, the corporate was stronger by way of sustainability with traceable fiber.
Zegna famous that the agency had all the time tried to offer again to the setting, whether or not by its Oasi Zegna forest reserve in Italy, or upcycling.
“Our #UseTheExisting undertaking makes use of leftovers of current fibers and materials to attenuate waste,” Zegna added.
Objects from the eco-conscious assortment may be bought on-line and in retailer.