Chairman, CEO of Ermenegildo Zegna Group on firm evolution, Saudi growth plans
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 style with the Estee Lauder Firms.
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 emblem.
For the heritage model, the longer term is as essential 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 development of 86.4 p.c year-on-year, the area is taken into account a key marketplace for the corporate.
Zegna stated: “Our Dubai Mall retailer has grow to be the benchmark for our enterprise – 30 completely different nationalities store there each 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 individuals 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 have now (Al-Malki Group), and I feel 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 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 12 months, Zegna rang the bell on the New York Inventory Trade, making historical past because the agency grew to become the primary Italian style model to record there.
“Going public was in all probability the largest and hardest resolution of my life – I used to be placing the agency and the household at stake,” he stated.
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 technology – with the correct governance and assets,” Zegna added.
The founding household stays main shareholders with a 62 p.c stake. And this 12 months’s monetary data would seem to verify 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 p.c 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 traces beneath one umbrella.
Zegna stated: “We determined to consolidate and have one model – Zegna.”
Model fairness had all the time been a robust focus at Zegna, and the newest transfer has created a extra streamlined identification for the label, as did its new emblem that includes a double-stripe signifier.
Though identified for its made-to-measure fits utilizing top-quality materials, the model has branched out into creating luxurious leisure put on beneath the artistic route of Italian dressmaker Alessandro Sartori.
“Earlier than the coronavirus pandemic hit, I referred to as within the government committee to launch a brand new mission 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 means of specializing in class administration and creating iconic merchandise such because the triple sew sneaker and knitwear, Zegna has grow to be extra accessible to completely different age teams.
Referring to the overshirt and informal pants he was sporting for the Arab Information interview, the corporate boss stated it was the brand new Zegna norm and an method that appealed to loyalists and youthful generations.
“It’s about creating glorious merchandise with a recent model in modern materials,” he added.
With its made-to-measure service, all the pieces from sneakers to knitwear, outerwear and fits will be personalized in numerous 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 style. Dior, Moncler, and Off-White are among the different huge 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 sporting the model’s signature overshirt and triple sew sneakers, highlighting its timeless but up to date method to design.
Italian-made menswear apart, its textiles division stays a worldwide benchmark for luxurious materials and one of many firm’s most important development drivers.
Third-quarter monetary outcomes confirmed textile revenues hitting $31 million, up 33.3 p.c 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 sturdy management over its suppliers. Final 12 months, alongside Prada, it acquired an Italian cashmere producer.
Zegna stated: “Filati Biagioli Modesto is an organization I purchased with Mr. Bertelli of Prada to ensure we have now a great provide of traceable cashmere that’s changing 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 outlets.
He identified that by means of its provide chain, the corporate was stronger when it comes to sustainability with traceable fiber.
Zegna famous that the agency had all the time tried to provide again to the atmosphere, whether or not by means of its Oasi Zegna forest reserve in Italy, or upcycling.
“Our #UseTheExisting mission makes use of leftovers of present fibers and materials to reduce waste,” Zegna added.
Gadgets from the eco-conscious assortment will be bought on-line and in retailer.