DUBAI: It has been fairly a 12 months 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 trend 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 12 months, the corporate went public on the New York Inventory Trade with a market cap of $2.4 billion. The luxurious menswear label additionally considerably rebranded, adopting a singular identify, Zegna, and a minimalist brand.
For the heritage model, the longer term is as vital as sustaining its Italian roots.
And the group’s chairman and chief government officer, Gildo Zegna, informed 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 completely 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 assets the persons are placing into the nation – they wish to make investments sooner or later and modernity.
“The secret is to be there with good companions which we’ve (Al-Malki Group), and I believe we’re going to get nice areas 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 inside 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 12 months, Zegna rang the bell on the New York Inventory Trade, making historical past because the agency grew to become the primary Italian trend model to checklist there.
“Going public was in all probability the most important and hardest determination 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 the easiest way to arrange the corporate for the subsequent era – with the correct governance and assets,” Zegna added.
The founding household stays main shareholders with a 62 % stake. And this 12 months’s monetary information would seem to substantiate that Zenga’s transfer was the correct one.
For the third quarter of this 12 months, 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 beneath one umbrella.
Zegna mentioned: “We determined to consolidate and have one model – Zegna.”
Model fairness had at all times been a robust focus at Zegna, and the most recent transfer has created a extra streamlined identification for the label, as did its new brand 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 beneath the inventive route of Italian clothier Alessandro Sartori.
“Earlier than the coronavirus pandemic hit, I referred to as within the government committee to launch a brand new venture 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 selections I made,” Zegna added.
By way of 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 completely 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 up to date type in progressive materials,” he added.
With its made-to-measure service, all the pieces from sneakers to knitwear, outerwear and fits could be personalized in varied supplies and colours.
This 12 months, Zegna additionally unveiled an unique partnership with Actual Madrid as its official journey put on associate – a transfer capitalizing on soccer’s rising relationship with excessive trend. Dior, Moncler, and Off-White are among the different massive 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 world 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 produce its textiles to among the most premium high-end manufacturers, together with Gucci and Tom Ford.
With a vertically built-in provide chain, the model has robust management over its suppliers. Final 12 months, alongside Prada, it acquired an Italian cashmere producer.
Zegna mentioned: “Filati Biagioli Modesto is an organization I purchased with Mr. Bertelli of Prada to verify we’ve provide of traceable cashmere that’s turning into very scarce. From sheep to buy, we’re the one luxurious firm that’s totally 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 retailers.
He identified that via its provide chain, the corporate was stronger when it comes to sustainability with traceable fiber.
Zegna famous that the agency had at all times tried to provide again to the atmosphere, whether or not via its Oasi Zegna forest reserve in Italy, or upcycling.
“Our #UseTheExisting venture makes use of leftovers of present fibers and materials to reduce waste,” Zegna added.
Objects from the eco-conscious assortment could be bought on-line and in retailer.