Zegna

9 - 5 2 4 -0 2 1
REV: S EPTEMBER 27, 2023
ROHIT DESHPANDÉ
DANTE ROSCINI
ELENA CORSI
Zegna
On a June morning in 2023, Ermenegildo (Gildo) Zegna, the CEO and Chairman of the fashion
Group Zegna, looked with satisfaction at his elegant, but casual Zegna branded outfit in the mirror. He
was about to meet with Patrizio Bertelli, the CEO of the Italian fashion group Prada, to cement the joint
acquisition of a minority stake in the Italian family-owned knitwear firm Fedeli. Through the
acquisition, they would keep their Italian supplier independent and take a step forward in preserving
the Made-in-Italy know-how in textiles and fashion. The deal would also advance Zegna’s already
established commitment toward casual wear, which in 2022, made up 70% of Zegna’s apparel
collection sales while formal wear stood at 30%, a ratio that was inverse in the years pre-COVID.
Gildo’s grand-father, also Ermenegildo, had started the business back in 1910 when he founded a
wool mill in Trivero, in the north of Italy, and built a global brand out of high-quality fabrics. Over the
years, the company’s focus shifted to the production of formal menswear. While growing, Zegna
purchased a few suppliers. Since 2019, its purchasing activity intensified. Many Italian manufacturers
in the textile and fashion industry struggled to compete against lower cost companies from Asia,
especially due to the European Union’s elimination of textile import quotas.1 The 2020-2021 COVID-19
pandemic and the lockdowns that some governments implemented to limit the spread of the virus led
to supply chain bottlenecks, further weakening Italian fabric suppliers. The soaring inflation during
the Russia-Ukraine war that began in 2022 only made matters worse. Some manufacturers sold to
international groups, namely the French firms Kering and Luis Vuitton Moet Hennessy (LVMH), both
of which had already purchased several Italian brands and were now interested in deals with fashion
suppliers. Their size was such that to beat them on the negotiating table was not easy.2
In 2023, while LVMH was a group of about 75 brands and Kering of 16, the Zegna group had only
three brands: its core menswear brand Zegna, the avant-garde brand Thom Browne, purchased in 2018,
and Tom Ford, added to the group in 2023. If more suppliers moved to LVMH and Kering, the company
would struggle to grow volumes while keeping its place-based branding, “Made-in-Italy” label.
Gildo looked again in the mirror. He was proud of how his company had embraced change and
how it managed to transform the image of the Zegna brand. However, how could the brand remain
relevant if formal wear was not its core activity anymore and in the presence of growing competition?
Professors Rohit Deshpandé and Dante Roscini and Elena Corsi (Europe Research Center) prepared this case with the assistance of Laura Wegner
and Avi Gulati. Professor Roscini, was the chairman of the Audit Committee of the Special Purpose Acquisition Company (SPAC) that took Zegna
public on the NYSE in 2021. It was reviewed and approved before publication by a company designate. Funding for the development of this case
was provided by Harvard Business School and not by the company. HBS cases are developed solely as the basis for class discussion. Cases are not
intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management.
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or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.
This document is authorized for use only in Jesús Antonio Aristizabal Castaño's Fundamentos de mercadeo / 2024-1F at Universidad EAFIT from Feb 2024 to Aug 2024.
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Zegna’s History
Ermenegildo Zegna started with a wool mill and looms when he was only 18, with the help of his
brothers (see Exhibit 1 for a timeline). Among the first in the world to have a logo, the Ermenegildo
Zegna fabrics were sold to tailors in Europe and abroad particularly in the United States. In 1966,
Ermenegildo’s sons took the helm and in the 1960s launched ready-to-wear collections, in the 1970s a
made-to-measure range, and in the 1980s the company’s first stores and two production plants in Spain
and Switzerland for ready-to-wear suits.3
While Italy’s economy boomed in the 1980s and Italian cinema promoted the idea of the Dolce Vita,4
Italian fashion brands gained popularity. Most were based in the north of Italy. Gildo explained, “Since
the 1970s, Italy witnessed the development of specialized clusters: wool in Biella and Vicenza, leather
and shoemaking in Marche and Tuscany, knitwear in Emilia, and ties in Como. The clusters attracted
designers and many gathered in Milan, Italy’s financial center.“ Italian fashion shows like Pitti in
Florence and the Milan show became key fashion events.5
In the 1990s, Zegna opened more stores. Gildo said, “In 1991, we were the first to open a luxury
monobrand store in China.” That same year, the company launched a partnership with the Italian
fashion brand Gucci to produce their menswear, radically increasing its volumes. However,
competition was growing. In France, the high-end accessories brand Luis Vuitton merged with the
alcohol company Moet Hennessy and was listed on the Paris stock exchange in 1987 as LVMH. The
group executed an aggressive luxury brand acquisition strategy under ownership of businessman
Bernard Arnault.6 In 1988, the French retail group PPR (Kering’s old name) was also listed on the Paris
stock exchange, and in 1999 PPR likewise moved to luxury, starting with Gucci’s acquisition.7
In parallel, Zegna, which was led by Ermenegildo’s grandsons, the two cousins Gildo and Paolo,
as joint CEOs since 1997, purchased manufacturing plants in Turkey and Mexico. The company also
expanded its product lines to not only fabrics and suits, but also ties, knitwear, shirts, accessories, and
sportswear. In 1999, Zegna also purchased Agnona, a women's luxury apparel brand, with the vision
of relaunching it, while in 2002 it partnered with Italian shoemaker Ferragamo and launched ZeFer
shoes. Other partnerships followed. Some were formed to gain production capacity for current lines
and others to expand the product line to new categories.8
While Zegna grew, the Italian fashion industry weakened. Gildo said, “Italians are too passionate
about the product and are not good at storytelling, or product marketing. We lack the diligence, focus,
planning capacity, and marketing skills that the big international groups have.” Many Italian brands
had been acquired by LVMH and Kering. Gildo said, “French brands often outsource production and
about 70% of its garments are made in Italy. In the 2000s, the owners of the key Italian fashion brands
gathered together to discuss an alliance. We all thought only the CEO of Prada can federate us. But he
was just out of a series of unsuccessful brand acquisitions and had to focus on his company.”
In 2007, the older cousin Paolo assumed the role of Chairman, while Gildo became the sole CEO. In
2018, the company purchased 85% of the US high-end, fashion brand Thom Browne, particularly
popular among the younger generations. After years of trying to revive the brand, in 2020, during the
COVID-19 pandemic, Zegna sold Agnona.9 Gildo said, “These were tough months for us. Our volumes
dropped by 50% and following the drop in demand and the widespread lockdowns, we had to
temporarily close our production plants and shops. Luckily, Italy had a generous deferral program in
place and we could keep our employees. But still, some of our suppliers were affected.” Despite the
pandemic’s effect on Zegna’s sales in 2021, at the end of the year, the Zegna Group listed on the New
York Stock Exchange. Gildo said, “Our managers needed new energy. By listing the company, I could
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reward senior management with shares, which is a strong incentive.” The listing also gave the company
the capital to grow.10 The family retained control over a 63% stake in the business.
By the end of 2022, despite the move from a textile producer to a ready-to-wear brand, 8% of Zegna
Group’s €1.49 billion revenues came from the sale of textiles and 7% from third party brands (see
Exhibit 2 for the financials). Consumer and Retail Excellence Director Angelo Zegna (HBS MBA 2018),
Gildo’s younger son, said “We produce fabrics, knitwear, hats, and garments for most high-end luxury
brands players.” Zegna’s headquarters were now in Milan.
The High-End Fashion Industry

In 2022, the global personal luxury goods market, dominated by Europe, the US, and China, had
recovered from the drop in sales during the COVID-19 pandemic and was expected to grow from about
€290 billion in 2019, to €353 in 2022 and between €540 billion and €580 billion in 2030 (see Exhibit 3 for
market shares).11 Covering about €80 billion in 2022, leather goods was the largest segment, followed
by apparel (€74 billion), beauty (€69 billion), watches (€52 billion), and shoes and jewelry (€28 billion
each).12 While womenswear was the largest vertical in luxury fashion, menswear was growing at a
faster pace in 2021, even though in 2022 their growth rates were similar.13
In 2022, the luxury fashion industry witnessed four key trends. First, the global pandemic had reset
the dress code—especially menswear-- to casual wear.14 The trend had already started a few years
earlier with an increase in appeal for sportswear and comfortable clothes and shoes, but the pandemic
made men move away from formal wear even for work. Many luxury brands developed sportswear
or leisurewear lines, alone or in partnership with sports brands, like Gucci, which designed a line for
the sportswear company Adidas.15 Many menswear brands refocused on casual and streetwear.16
Second, some wealthy consumers were moving away from big logos, following the so called quiet
luxury trend. In a period of high inflation and upcoming potential economic recession, wealthy
consumers sought garments of high-quality, but with a minimalist and timeless style, neutral colors,
and no visible logo, even though their peers could recognize the garments.17 Less trend-focused and
logo-centered fashion houses like Loro Piana, Brunello Cucinelli, and Hermès had been key players in
such a segment for years and were now experiencing higher demand.18
Another important trend was the growing concern for the environment, especially among younger
consumers.19 Luxury brands were traditionally less interested in sustainability practices. However,
following customers’ demands, more and more brands introduced sustainable materials and placed a
stronger focus on recycling and waste control efforts. Finally, the boundaries between menswear and
womenswear were fading, a result of gender fluid trends.20
The luxury fashion industry was dominated by LVMH and Chanel, each covering 10% of the luxury
fashion goods industry sales, as well as by Kering, covering 5% of the market (see Exhibit 4 for details
on selected players).21 Among such key players, LVMH owned five Italian brands (Berluti, Emilio
Pucci, Fendi, Loro Piana, and Bulgari), while Kering four (Gucci, Bottega Veneta, Brioni, and
Pomellato). Conglomerates offered advantages, such as better negotiating power with retail landlords,
and economies of scale advantages in production, marketing, supply, and logistics.22
Though many Italian brands had been purchased by foreign companies or private equity groups
and despite Italy lacked large multi-brand luxury champions, the country remained an important
player in the fashion industry.23 Italy still had a rich pool of monobrand luxury companies such as
Prada, Armani, Ferragamo, and Brunello Cucinelli.24 In 2021, Italy was home to 23 of the top 100 luxury
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goods companies, yet it only had an 8.3% share of the top 100 sales. France, on the other hand, only
had eight companies, yet covered 34.3% of the top 100 sales.25 In luxury clothing, footwear, and leather
goods manufacturing, Italy produced about 78% of the global supply.26 “Made-in-Italy” was still a
point of reference for high-quality clothing and textiles.27
Moving to a One Brand Zegna

Between 2004 and 2022, the Zegna brand was organized in three segments: the core business
Ermenegildo Zegna, the fashion forward Ermenegildo Zegna Couture, and the entry price Z Zegna,
which appealed to younger customers. Each sub-brand had its own distribution network, different
logos, and different price points. Ermenegildo Zegna also offered made-to-measure services.
A growing concern for the company was that the three sub-brands followed a formal style. Zegna’s
Artistic Director Alessandro Sartori said, “Our brand has been grounded and known for tailoring, or
shirts, ties, and suits. But that image has lost appeal in recent years. You can be the most beautiful
brand made of the best fabrics, but if your style is getting old you are left behind.” The store formats
also looked old, furnished in black wood like a private club. Gildo said, “Our store people presented
the products talking about how many stitches there were, the length of the yarn, and the type of fabric
used. We were not selling a dream and were boring.”
In addition, the product categories were too wide. Edoardo Zegna, Gildo’s eldest son and head of
Marketing since 2021 said, “For example, we had 10 different sneaker models but none were taking off
and all had different targets and price points. We needed a model that translated the new lifestyle of
the company and decided to focus on one.” Sales were stable, but shopping frequency was decreasing.
Edoardo said, “Our brand had become the emporium of men's luxury. You would go to Zegna, if you
needed something, for example because you were getting married. But you would never wake up and
say: ‘ I’ll visit Zegna and see what they have.’”
Overall, the Zegna family believed that the company needed to change on several fronts. Gildo had
been planning radical changes since 2015, when he had asked the former Zegna designer Sartori to
come back. Sartori said, “We had a seven hour lunch at the end of which I signed the contract. We
agreed that several changes were needed as you cannot just focus on the style, or the collection.” Gildo
added, “In the second year of COVID, or 2021, our volumes were still low while other luxury brands
were growing. People were not buying suits anymore. The Z Zegna brand was the most affected one
as these customers did not seem to be coming back. We had to do something.” In July, Gildo thus
announced that in 2022, Zegna’s three sub-brands would merge into one. Edoardo said, “Since I joined
the family business in 2014, I thought we should merge the three brands. We were reaching out to
different customer segments with different pricing, instead of building value. The Z Zegna brand,
which sold suits at €1,000 to young professionals or for special occasions, diluted the image of the other
two brands which were at price points of €3,000 for Ermenegildo Zegna and €5,000 for Couture. We
used the crisis to push through the changes.” By merging the three sub-brands, the company stopped
producing Z Zegna. Gildo remembered, “It was a hard decision for me as our core business would not
be called Ermenegildo Zegna anymore, like my ancestor, but only Zegna. I had to close our Spanish
manufacturing plant that my father had opened in the 70s. It was heartbreaking, but we had to do it.”
In addition, Gildo announced that the new Zegna brand would be centered around casual wear and
drastically cut its SKU offering from 10,000 to 3,000 in a couple of years.
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Zegna’ New Style

Zegna’s casual style had been developed by Sartori during the pandemic, when he finally had the
time to rethink the whole collection. Sartori said, “Already when I was studying my teacher believed
that fashion would move to casual and comfortable clothes. Zegna had some casual and sports
garments, but not much. I had already started inserting garments with new styles in 2019 but it was
only in 2020 that I could fully define it.” To develop the new style, Sartori researched past men’s outfits
to modernize. He said, “I am a true believer in having timeless and durable pieces, which I think also
serves the customer’s interests as they do not have to constantly change their closet. I looked for the
best period in history to have comfortable functional garments, which I discovered is the workers’ car
industry utilitarian style of post-WWII. The worker's jacket, shirts, and over shirts were pieces that
once revisited, could be the essential garments of the future menswear wardrobe.”
The new collection, launched in 2022, was centered around casual wear (see Exhibit 5 for pictures
of the collections). The casual wear included unstructured jackets and revisited workers’ overshirts,
shirts, and pants, made out of high-end fabrics. The garments came only in a few colors. Sartori said,
“I established a few iconic Zegna colors, such as brown, white, and navy blue, and I used
monochromatic silhouettes to be more understandable. We launched a new silhouette, with
unstructured jackets and larger pants, which is now part of the quiet luxury format.” Zegna’s collection
still included formal suits, but they were less visible in the fashion shows. Sartori said, “We did a bold
move, but mostly in how we combine garments. If before, the jacket was sold with a pant, shirt, tie, and
a classic shoe, today we push for different combinations. We do not sell 50 ties anymore, but if you
need one, we still have a few.” The collection also had a more important share of essentials, or garments
that did not change (see Exhibit 6). In 2022, 65% of Zegna’s sales were casual, 35% formal. Essentials
covered 32% of the sales, compared to 16% in 2019, and were expected to grow further in 2023. Edoardo
said, “Our next step was to stop following seasonal fashion trends, but instead to build our
recognizability around fewer iconic items that distill the essence of the brand. I always wear the same
type of shirt, jeans, and shoes during the year. A luxury company goal is being able to define identity
through iconic products.”
Made-to-Measure The formal wear volumes had shrunk in Zegna’s collection, but its sales
decline had been softened by the resilience of made-to-measure. CFO and COO Gianluca Tagliabue
said, “Today the made-to-measure business is about 10% of Zegna’s sales, of which about 85% is from
formal wear, while 15% is from casual.” Made-to-measure garments were all produced in-house and
using Zegna’s fabrics. Angelo said, “Made-to-measure is not just shortening a sleeve. There is more
sartorial work involved than in other companies as our customers choose colors, materials, and styles
for a perfect body fit. We are the only brand doing real made-to-measure, for both casual and formal
wear, and for all sorts of garments ranging from shoes to outerwear and suits. In addition, we can
deliver in as little as two weeks – thanks to our in-house production plants – while our competitors
need at least four.”
The Bespoke Atelier Zegna had set up a few bespoke ateliers in its most important shops,
where a master tailor could receive customers and build outfits from scratch. The one in Milan, for
example, had a separate access from the store and was furnished with images of the founder’s home.
Only a few clients were invited to the atelier and could only get in with an appointment. Each model
was developed by a bespoke master tailor, under the guidance of Sartori. A bespoke tailor said, “We
send all the customer requests and the measures and sketches to Sartori who then shares his
suggestions. We only do a few garments per year and travel all over the world for this. It is not easy to
find talented Italian tailors today and many of us are of an older generation.”
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Collaborations Some garments of the casual collection were developed in partnership with
other brands. Angelo said, “For example, in 2020, we partnered with a streetwear fashion brand to
energize our collection. The collaboration sold well, but the customers did not cross buy with Zegna’s
core assortment. The positioning between Zegna and the streetwear brand was just too far apart.” In
2023, Zegna launched a parallel outdoor line in partnership with Norda, a Canadian company
specializing in high-end trekking garments, which seemed to be a better fit. Angelo said, “For example,
the Norda-Zegna trekking shoe, retailed at about €500, is bringing in more sticky customers.”
Pricing A complete casual wear outfit was made up of several garments, resulting in a higher
bill for the customer, on top of the re-branding which led to richer and more expensive product mix.
In addition, in 2022, Zegna increased prices twice. Gildo said, “I followed the competition as they were
the first to raise prices.” In 2022, it was reducing its presence in outlet stores. Gildo said, “We are
experimenting with a new concept: in some luxury outlets we sell our merchandise at full price (no
discounts). And we are attracting new types of clients!”
Zegna’s Targeted Marketing Approach

The move to casual wear went hand in hand with a change in Zegna’s marketing approach. Gildo
said, “We were too passionate about the product and believed that its high quality would speak for
itself. I kept telling my teams that we should follow the French example. Our mantra should be: better
at storytelling, customer centric, discipline, and consider retail as the goal not the problem. But what I
was saying did not stick. After the IPO such a mantra became a matter of survival.”
Gildo’s son Edoardo, had worked intensively to define Zegna’s new marketing approach. Edoardo
said, “I looked at the brands that can be identified with one product like Hermès for bags and asked
myself: what can I learn from them? One of the basic ways to gain recognizability is consistency.” First,
Edoardo redirected the company’s marketing efforts to more targeted marketing. Edoardo said:
Modern marketing is hyperlocal. This is also our best strategy when we compete with
groups with deep pockets and multiple brands. I stopped advertising in international
airports and focused instead on private airports. Similarly, I do not put my advertising on
all billboards, but rather on those close to places where my aspirational customer goes,
like the bus stop in front of the best restaurant in Milan. I don't advertise in mainstream
fashion magazines, but rather in the local golf club magazine.
At the same time, Zegna boosted partnerships. Edoardo said, “We choose partners with a legacy,
not hype. We became a sponsor of the soccer team Real Madrid, because they are the only ones with
such a history of victories. My goal is to be in my customers’ life and where there are amazing
experiences.”
Edoardo and Sartori developed a new logo, which they insisted should be on all Zegna garments,
including suits. Edoardo said, “I looked at companies that have built a brand that goes beyond the
product, like Patagonia. If you take off their logo, their products are simple and pretty unrecognizable.
I want our customers to buy our product because of the logo and of what it means. The social currency
that logos carry is very powerful.” The new brandmark was made of two stripes and was a direct
reference to the main road of Zegna’s Oasis, a forest that had been developed by the founder of the
company. Edoardo said, “That logo should become the window into our world and our founder’s
values. He understood that the success of his firm was the happiness of the community and invested
in the mountain around the original production plant. He built a natural reserve of 100 square
Zegna 524-021
kilometers (30 times Central Park), planted more than 500,000 trees, and set up a hospital and houses
for his employees. Nobody else has something similar. We must build our brand around it.”
Increased consistency also meant focusing on specific products. Sartori said, “Our triple stitch
sneaker is the first product that we became consistent on. The shoe was not taking off but was still
selling. We made it lighter, cutting off extra material, and made it available in only one SKU instead of
10 as previously. In fashion it is not only important what you do, but also what you decide not to do.
It was a bold decision, but the right one.” (See Exhibit 7 for a picture of the triple stitch’s new version).
In addition, the company systematically presented the shoe on every occasion it could, or in shows,
events, and all its stores. Edoardo said:
My goal is to be boring so that when a salesperson asks if the customer knows about
the triple stitch and our story, they will say yes and that they already have the shoe. We
were obsessed with what we should sell next, but if a customer has bought 5 colors of the
same shoe, it means that it’s a great product. Our focus should be how to sell that product
to other customers, not what else to offer to that customer. We are not a shoe company
but we expect our triple stitch to soon generate $100 million of sales per year, up from just
$20 million in 2021.
Zegna’s Store Network and Approach

The change in style had involved also the store network, which generated 85% of the Zegna brand
sales (or 80% if online sales were excluded) versus 15% via wholesalers in 2022. First, the company had
requested its store managers to follow the split 70/30 casual/formal when they ordered the collections.
General Merchandising Manager Giulio Valsecchi said, “We cannot impose this on our wholesalers,
but the mandate is clear with our stores.” Second, Zegna changed the format of its stores. Valsecchi
said, “All our windows now show casual wear outfits and the triple stitch shoe and this is what the
customer sees when he gets into our stores.” The formal wear had been moved to dedicated rooms,
typically not at the ground floor as in the past. However, in the made-to-measure room, sales
attendants could help customers navigate an interactive screen which showed outfits in different colors
and materials for formal and casual wear. Angelo said, “We have just launched the interactive outfit
tool. It allows the customer to visualize 49 billion different combinations. This tool is particularly
helpful with our casual wear made-to-measure, a segment which we are trying to boost. Casual wear
is harder to visualize than a suit because you need to match many different garments.”
The company had also increased its focus on store productivity. Tagliabue said, “We receive
pressure from our investors to increase our gross margins. Their reference is luxury brands centered
around accessories, like bags, which have gross margins north of 80%. But we are into ready to wear,
where margins are lower because you have the seasons and sizes, and our leather business is small.“
At the store level, the focus was on increasing the ratio of dollar per store’s square meter. Tagliabue
continued, “Analysts look at the ratio dollar per square meter as it’s correlated with profitability. Retail
landlords as well use it to assign retail space. In addition, we want to transform our wholesalers deals
into shop-in-shop contracts, where we bring in our personnel. And this ratio can help us convince
wholesalers that we will bring in many customers.”
Zegna had focused on three key performance indicators (KPI) to increase the ratio. The first was
outreach, or generating sales by inviting customers to the store. During COVID-19, Zegna had started
better defining its customer journey and the moments in which store people should reach out to the
customer, like sending a thank you message right after a store visit, or when to send invitations to come
524-021 Zegna
back to the store. To help the store managers, it had launched a clientele application software that
prompted them with notifications when it was the right time to send an invitation message to
customers. Angelo said, “We have a data science team that has calculated when the customer is more
likely to shop again based on our customer and sales data. We used to think that we should wait many
months before a new customer would come back shopping, while we learned that the median for
customer coming back shopping is only 25 days.” Store managers received prompts telling them whom
to invite and what item they could suggest to the client, based on previous shopping and store trends.
The app would send prompts also later on in the customer journey. Angelo said, “Our store
attendants are trained to collect information from our customers from their favorite color to the names
of their kids. For example, if when the prompt arrives the store attendant sees in our database that the
customer has a son who is a Real Madrid supporter, and that his birthday is coming up soon, the store
manager can send a different message asking when could be a right time for the client to pick up a
special present for his son concerning Real Madrid.” Zegna had created a “delighting budget” that
store managers could use for such gifts. Angelo said, “I always tell our store people that they are in the
business of developing authentic relationships and gifts accelerate this. We created a menu of
‘delighting gifts’ which are gifts that speak about Zegna’s values and support relationships.” For
example, to a customer who just had a baby, sales attendants could offer a little blanket with a book on
the Oasi Zegna. Customer advisors could distribute these gifts at their discretion. In 2022, 50% of in-
store sales had been originated via outreach. Angelo said, “In addition, outreached customers spent
80% more than the others. There was opposition to this approach internally as we were afraid to bother
customers. But we are not bothering them, we are offering a service and the service is working well.“
The second KPI was net promoter score (NPS), a measure of customer loyalty. Angelo said, “We
believe in the importance of NPS so much that every single manager at Zegna has their bonus tied to
it. A store with low sales but high NPS is a store which I want to reward.” The third was store-level
targets to increase the group of ‘Zegna friends’ per store. Angelo explained, “There are about 2 million
individuals who could afford to spend €50,000 worth merchandise at Zegna per year. This is based on
how many people have assets above a certain threshold. Currently we have too few of them. We have
a huge opportunity to increase the number of these high spenders.“
Zegna’s Customers
Zegna’s customer base had widened with the move to casual. For example, former F1 world
champion race driver Nico Rosberg had recently become a Zegna customer. He said:
In 2022, my wife pushed me to go and visit Zegna as we were in Milan. I was reluctant,
as for me it was associated with formal wear. It’s the dress code of Wall Street bankers.
But when we got in the store and went through all the floors up until the bespoke atelier,
we were impressed by the cool, young, fashionable, and trendy style. How the founder
developed a sustainable business before the sustainability trend started was a plus that
made me stick to the brand today.
The new style had also helped Zegna grow its volumes in countries where casual wear was
particularly booming, like the United States. Sartori said, “With the move to casual, we did not leave
behind customers like the bankers, as we kept offering suits. But many clients who used to buy only
formal at Zegna, now buy also casual. We took advantage of a trend of growing demand of luxury
leisure wear.” The casual stile was bringing existing customers to purchase more Zegna items. Sergio
Ermotti, the CEO of UBS Group AG, a Swiss bank, and the lead non-executive director at Zegna, said:
Zegna 524-021
I wear suits because as a banker this is how we are expected to dress, but occasionally
I do wear a black pair of triple stitch shoes in less formal meetings. Over time, I moved
from buying a Zegna suit every couple of years, to going to Zegna for most of my
shopping. Most of my casual wear is now Zegna. The brand is so successful that even the
fast fashion company Zara is imitating Zegna’s colors and style, especially for casual wear.
However, once you touch the garments, you can feel the difference.
Some customers believed that casual wear would take over in the future. The CEO of the U.S. bank
JP Morgan and longtime Zegna customer, Jamie Dimon, said, “I think the more casual business attire
will be quite widely accepted over the years to come and is here to stay.”
The growth in markets such as the United States and the Middle East, where the Dubai Mall had
been Zegna’s world top performing store for three years in a row, helped in part to reduce Zegna’s
dependency from the greater China region (China, Hong Kong, and Macau). Tagliabue explained,
“Greater China used to be around 35% of sales before COVID-19, in 2021 jumped to 46% but then
dropped to 33% in 2022, as China went through stringent lockdowns, when the rest of the world had
lifted all restrictions. But sales in China will increase back again in 2023. Our sweet spot is around 35%
of our sales.” [See Exhibit 8 for Zegna’s Group Sales by region].
The only customers Zegna had lost were the Z Zegna brand ones. However, Tagliabue argued,
“Now that Z Zegna has disappeared, knitwear has become a first bite into Zegna. Increasingly also our
triple stitch sneaker, priced between €600 and €1,200, is our entry product. Chanel is such a powerful
brand also because next to the very expensive bags, it sells expensive beauty products, retailed at
around €100, which makes them still affordable. Our triple stitch could serve that purpose.”
Moving Forward
Investors had welcomed Zegna’s move to casual wear. Tagliabue said, “Many of our investors like
that Zegna is still a leader in tailoring, but appreciate that they can now shop for other occasions. But
they see casual as a further challenge, because it is more subject to trends than accessories or formal
wear.” In addition, Zegna’s move to casual wear exposed it to more direct competition.
To secure production, besides buying suppliers, Zegna was also setting up trade schools in
knitwear, shoemaking, fabrics, and other disciplines. Gildo said, “We have a problem in Italy in finding
these types of workers. We are cooperating with the Italian state, but would do it even alone. For
example, just for the triple stitch model, I need few hundred new blue collar workers. I have a similar
issue with knitwear. I am creating my future workforce. I thought about developing a production plant
elsewhere in Italy, but would we be able to transfer know how?”
Gildo also hesitated on Zegna’s purchasing strategy. In June, LVMH had acquired a majority stake
in Italian leather goods supplier Nuti Ivo SpA Group to increase its control of the leather manufacturing
processes within its supply chain.28 If the international groups started investing heavily in bringing in-
house production, would Zegna be able to beat their purchasing offers and keep growing with Italy-
based production? Also, how relevant was the Made-in-Italy brand for casual outdoor wear, a segment
in which Italians were not the market leaders? Gildo also hesitated on moving too far away from formal
wear. He had embraced the new style, but the market showed also that customers were getting back
to suits in 2023. For the next winter collection, Sartori had put back deconstructed suits in the fashion
show of 2023/2024. Was it the right strategy?
524-021 Zegna
Finally, Gildo thought back at a conversation he had with his team about the company’s accessories,
which covered 15% of sales. Angelo said, “The brands with higher margins are those that have
accessories at the core of their collection. With accessories I exclude shoes, as these come in sizes, like
ready-to-wear. Should we invest in our accessories and get better at bags and wallets, or should we
keep focusing on the triple stitch shoe?” How far could Zegna change its identity? Edoardo had also
shared with the team his doubts on partnerships. He asked, “How far can we go with partnerships
without diluting the brand?” These were all valid questions, but Gildo was not sure of the answer.
10
Zegna 524-021
Exhibit 1 Zegna Group: Timeline
Year Key Event

1910 At the age of 18, Ermenegildo Zegna establishes a textile business in Trivero, Italy.
1930s Opening of an Ermenegildo Zegna textile shop next to the production plant in Italy
1960s Sons Aldo and Angelo Zegna take over the leadership of the business as joint CEOs and launch the
company's first men's clothing line.
1972 Launch of the made to measure range
1973 Launch of the first international production plant in Spain
1977 Opening of a production facility in Switzerland
1980 The first retail store opens in Paris.
1985 Launch of the first shop in Milan, Italy.
1990 The company opens its first U.S. retail store in New York; launch of a joint venture, V2, with the fashion
brand Versace.
1992 Two new brands, Zegna Soft and Zegna Sportswear, are launched
1993 Launch of the Oasis Zegna project, to enhance and expand a natural reserve which had been initiated
by the founder and was based around the production facility in Trivero.
1995 The company acquires Tarsa, a Mexico-based clothing manufacturer and retailer.
1998 Launch of the brand and retail format, Zegna Sport.
1999 The company acquires luxury womenswear maker Lanerie Agnona SpA, in Italy.
2000 Creation of the Zegna Foundation, supporting environmental, education health related projects
2001 Zegna closed the year with €685.7 million revenues.
2002 Acquisition of a majority share in Guida, a company which owns the leather goods brand Longhi; a
50/50 joint venture, ZeFer, is established with the shoemaker Ferragamo
2003 Acquisition of 50% of Sharmoon, a menswear producer and retailer in China, to improve the company’s
Chinese presence. China covered 5% of sales. Zegna pulled out from Sharmoon in 2015.
2004 The new Z. Zegna youth-oriented brand, is launched; Zegna signs a license agreement with Gruppo
de Rigo Vision for the production of Zegna eyewear.
2006 License with the Italian underwear company Perofil for the production of Zegna underwear
2007 Paolo becomes Chairman and Gildo the sole CEO; the group launches online shops in Europe, United
States, Japan and Canada.
2009 Purchase of a 100% stake in the Italian silk leader producer Tessitura di Novara
2012 Purchase of a 15% stake in the Italian Pettinatura di Verrone, leader in superfine wool, cashmere and
vicuna
2013 Partnership with carmaker Maserati for a limited edition car model “by Ermenegildo Zegna.”
2014 License to Marcolin for the production of eyewear; purchase of Australian wool producer
Zegna Sports merges into Z Zegna
2016 Purchase of a 60% stake in Bonotto, Italian high-end textile manufacturer, furbishing & experimental
fabrics
2018 Purchase of a 85% stake in the U.S. brand Tom Browne; purchase of 51% stake in Cappellificio Cervo,
Italian hatmaker
2019 Purchase of the Italian leather fabrics manufacturer Pelle Tessuta and 65% in the Italian Dondi, leader
in men’s and women’s jersey
2021 Purchases of a 60% stake in the Italian Tessitura Ubertino, specialized in high-end fabrics for women
and 40% in Filati Biagioli Modesto, cashmere and carded yards
The Zegna Group is listed on the New York stock exchange.
2023 Acquisition of the remaining 85% of U.S. brand license for Tom Ford International LLC that was not
owned bringing the total stake to 100%; acquisition of 15% stake in Italian nightwear Fedeli with Prada
(which acquired another 15%)
Partnership with the Norda trekking company and acquisition of minority stake in Norda
Source: Developed by casewriters from Company data.
11
524-021 Zegna
Exhibit 2 The Zegna Group Key Data
a) Key Financials (in € thousands, unless otherwise stated)
2019 2020 2021 2022

Revenues 1,321,327 1,014,733 1,292,402 1,492,840
Profit/(Loss) 25,439 (46,540) (127,661) 65,279
Adj. Profit/(Loss) 43,047 (4,752) 75,322 73,629
Adj. EBIT 107,274 20,013 149,115 157,729
Adj. EBIT Margin N.A. 2.0% 11.5% 10.6%
Diluted Earnings per Share in € 0.11 (0.25) (0.67) 0.21
Adj. Diluted Earnings per Share in € 0.20 (0.04) 0.33 0.25
Total Employees 6,540 6,249 6,049 6,256
Breakdown by Segment
Zegna brand and textiles:
Revenues 1,165,911 843,318 1,035,175 1,176,706
Adj. EBIT N.A. (7,243) 131,929 141,513
Adj. EBIT Margin N.A. (0.9%) 12.7% 12.0%
Thom Browne:
Revenues 161,200 179,794 264,066 330,891
Adj. EBIT N.A. 28,994 38,097 48,077
Adj. EBIT Margin N.A. 16.1% 14.4% 14.5%
Corporate Adj. EBIT N.A. (1,738) (20,911) (31,861)
Adj. EBIT Margin N.A. (0.2) (1.6%) (2.1%)
Source: Developed by casewriters from Zegna Annual Report 2021 and 2022.
Note: Figures are adjusted for income and costs which are significant in nature and that management considers not reflective
of underlying operating activities, including, such as costs related to the Business Combination, severance indemnities
and provision for severance expenses, certain costs related to lease agreements and other items . Zegna’s management
referred to the adjusted figures to evaluate its underlying operating performance.
b) Total Revenues Breakdown by Business (in € thousands)
2019 2020 2021 2022

Zegna branded products 919,545 636,478 847,311 923,942
Thom Browne 160,595 179,490 263,397 330,014
Textile 108,513 87,615 102,244 136,769
Third Party Brands 91,720 82,273 74,957 97,792
Other 23,263 28,877 4,493 4,323
Total Group revenues 1,321,327 1,014,733 1,292,402 1,492,840
Source: Developed by casewriters from Zegna Annual Report 2021 and 2022.
12
Zegna 524-021
c) The Zegna Group Revenue Breakdown: Direct v. Wholesale
2019 2020 2021 2022

Direct to Consumer Zegna brand 743,012 527,972 712,862 772,505
Direct to Consumer Thom Browne brand 61,045 85,268 138,567 145,702
Total Direct to Customer 804,057 613,240 851,429 918,207
Wholesale Zegna brand 176,533 108,506 134,449 151,437
Wholesale Thom Browne brand 99,550 94,222 124,830 184,312
Wholesale Third Party Brands and 200,233 169,888 177,021 234,561
Textiles
Total Wholesale 494,007 372,616 436,480 570,310
Other 3,302 28,877 4,493 4,323
Total Revenues 1,292,402 1,014,733 1,292,402 1,492,840
Source: Developed by casewriters from company data.
d) The Zegna Group‘s In-House Production
Source: Company data.
Note: * including the Italian-Speaking Swiss Region Ticino.
13
524-021 Zegna
Exhibits 3 The Personal Luxury Goods Market
a) Geographic Breakdown
Source: Developed by casewriters based on Claudia D’Arpizio, Federica Levato, Filippo Prete, Joelle de Montgonflier, and
Allison Kavanagh, “Renaissance in Uncertainty : Luxury Builds on Its Rebound,” Bain and Co., 2022, at
https://www.bain.com/globalassets/noindex/2023/bain_digest_renaissance-in-uncertainty-luxury-builds-on-its-
rebound.pdf, accessed August 2023.
b) Personal Luxury Goods Market Customer Nationality Breakdown
Source: Developed by casewriters based on Claudia D’Arpizio, Federica Levato, Filippo Prete, Joelle de Montgonflier, and
Allison Kavanagh, “Renaissance in Uncertainty : Luxury Builds on Its Rebound,” Bain and Co., 2022, at
14
Zegna 524-021
Exhibit 4 Largest Luxury Fashion Brands Groups (in € millions, FY 2022, unless otherwise stated)
a) Key Players
Gross %
HQ Market N. of Profit Italian
Group Country Value brands Revenue EBIT Margin EBITDA brands
LVMH France 429,273 75 79,184 21,018 68.4 23,908 20
Kering France 61,844 16 20,351 5,589 74.7 6,322 31
Richemont Switzerland 88,054 20 19,953 5,087 66.7 5,734 10
Source: Compiled by casewriters based on Capital IQ for financial data; casewriters analysis for the other columns.
b) Key Players in the Menswear Segment: FY 2022 financials in € millions, except for Pricing Range
(in € for 2023 data)
Country Made to Pricing

of Men’s Meas./ Ready-to-
Company Ownership Origin Only Revenue EBITDA EBIT Bespoke Wear Men
Armani Independent Italy No 2,350 289 202 Yes 500-5,000
Balenciaga Kering Spain No 1,205 333 N.A. No 600-9,000
Brioni Kering Italy Yes N.A. N.A. N.A. Both 500-6,000
Burberry Listed UK No 3,629 856 744 Both 300-4,000
Brunello Cucinelli Listed-family Italy No 920 184 143 MTM 400-6,000
Canali Family Italy Yes 96.3 N.A. N.A. MTM 200-4,000
Etro 60% PE Catterton Italy No 133 -21.4 -34.2 No 300-1,500
Gucci Kering Italy No 10,847 N.A. N.A. No 500-10,000
Loro Piana LVMH Italy No 2,000 76 N.A. Yes 400-3,000
Louis Vuitton LVMH France No 20,000 N.A. N.A. No 500-3,000
Prada Listed-family Italy No 4,200 961.6 776 MTM 300-6,000
Moncler Listed Italy No 2,602 860 774 No 600-10,000
Zegna Listed-family Italy Yes 1,507 220 162 Both 300-6,000
Source: Developed by casewriters based own research from each company’s website, www.zippia.com (For Tom Ford and
Gucci), Capital IQ and Statista data for the financials; Armani’s financials are as reported by the company; LV
financials are as estimated by “LVMH,“ zonebourse.com, at www.zonebourse.com, all accessed August 1, 2023.
15
-16-
524-021
Key Luxury Brands in the Menswear Segment, Share Pricing, 2022-2023
Developed by casewriters from Capital IQ, accessed July 2023.

Source:
c)
Zegna 524-021
Exhibit 5 Zegna’s Old and New Style
a) Picture of Zegna’s 2017 Collection
Source: Company courtesy.
17
524-021 Zegna
b) Zegna’s 2022 Collection
18
Zegna 524-021
c) Zegna’s Brand Positioning in 2022
19
524-021 Zegna
d) Zegna’s Net Promoter Score Positioning v. Peers, 2022
Note: NPS stands for Net Promoter Score which is a measure of the loyalty of customers in a company. NPS scores are
measured following a single question survey and reported with a number between -100 and +100. The higher the score
the better.
20
Zegna 524-021
Exhibit 6 The Triple Stitch
Source: Company courtesy and Geordie Wood for Time, “Time 100 Most Influencial Peolple 2022, Tim Cook,” Time Cover
Store, May 23, 2022, https://time.com/collection/100-most-influential-people-2022/6177769/tim-cook-titans/,
accessed August 2023.
Note: In the Time100 cover, Tim Cook, the CEO of Apple Inc, is wearing triple stitch sneakers.
21
524-021 Zegna
Exhibit 7 Examples of Zegna’s Essentials
22
Zegna 524-021
Exhibit 8 Zegna Group Sales by Region, 2018-2022 (inclusive of B2B textile sales)
700
600
500
400
300
200
100
0
EMEA Italy United Middle North United Latin APAC Greater Japan Other EMEA
(Excl. Kingdom East and America States America (Excl. China (Excl.
Italy, UK Africa (Excl. Greater Region Italy &
& MEA) (MEA) U.S.) China UK
Region &
Japan)
2018 2019 2020 2021 2022
Source: Developed by casewriters from Capital IQ, accessed July 2023.
23
524-021 Zegna
Endnotes
1 The European Commission, ”Textiles and clothing in the EU,” https://single-market-

economy.ec.europa.eu/sectors/fashion/textiles-and-clothing-industries/textiles-and-clothing-eu_en, accessed July 2023.
2 Geoffroy de Mendez, Ashley Wallace, Daria Nasledysheva, Adam Gildea, David Roux, Maria Laura, Adurno, Irem Sara,
“The Case for an Italian Luxury Goods Conglomerate,“ Bank of America (BOFA) report, May 2, 2023, accessed via Refinitv,
July 5, 2023.
3 Matt Garland and Adam Cochran, “Ermenegildo Zegna Group,” Deutsche Bank, February 4, 2022, accessed via Refinitiv, July
2023; “Ermenegildo Zegna Leader,“ https://italian-traditions.com/ermenegildo-zegna-leader-in-male-elegance/, accessed
July 2023.
4 Rosalind Jana, “The history of Milan Fashion Week,” Vogue, February 22, 2021, https://www.vogue.fr/fashion/article/a-
brief-history-of-milan-fashion-week, accessed July 2023.
5 Ibid.
6“LVMH: A Timeline Behind the Building of the World’s Most Valuable Luxury Goods Group,” The Fashion Law, October 5,
2021, https://www.thefashionlaw.com/lvmh-a-timeline-behind-the-building-of-a-conglomerate/, accessed July 2023.
7 Kering, “Group History,” Kering website, at https://www.kering.com/en/group/culture-and-heritage/group-
history/?page=3, accessed July 2023.
8“Ermenegildo Zegna,” Fashion Man, https://fashion.mam-e.it/ermenegildo-zegna/, accessed July 2023.
9 Dominique Muret, “Ermenegildo Zegna sells Agnona, bids farewell to Simon Holloway ,“ Fashion Network, August 27, 2020,
https://ww.fashionnetwork.com/news/Ermenegildo-zegna-sells-agnona-bids-farewell-to-simon-holloway,1238593.html,
accessed July 2023.
10”How Zegna Italian Luxury Retailer Is Reinventing Itself as a Public Company,” Forbes, December 27, 2021
https://www.forbes.com/sites/brinsnelling/2021/12/27/how-zegna-italian-luxury-retailer-is-reinventing-itself-as-a-public-
company/, accessed July 2023.
11 Claudia D’Arpizio, Federica Levato, Filippo Prete, Joelle de Montgonflier, and Allison Kavanagh, “Renaissance in
Uncertainty : Luxury Builds on Its Rebound,” Bain and Co., 2022, at
12 Claudia D’Arpizio, Federica Levato, Filippo Prete, Joelle de Montgonflier, and Allison Kavanagh, “Renaissance in
Uncertainty : Luxury Builds on Its Rebound,” Bain and Co., 2022, at
13 Daniel Yaw Miller , “Explainer — Why the Menswear Market Is on Fire,” Business of Fashion, July 13, 2022,
https://www.businessoffashion.com/articles/retail/menswear-market-growth/; “Luxury goods: in-depth market analysis,”
Market Insights report, Statista, June 2023, available at https://www-statista-com.ezp-
prod1.hul.harvard.edu/study/61582/luxury-goods-in-depth-market-analysis/, accessed July 2023; Claudia D’Arpizio,
Federica Levato, Filippo Prete, Joelle de Montgonflier, and Allison Kavanagh, “Renaissance in Uncertainty : Luxury Builds on
Its Rebound,” Bain and Co., 2022, at https://www.bain.com/globalassets/noindex/2023/bain_digest_renaissance-in-
uncertainty-luxury-builds-on-its-rebound.pdf, accessed August 2023.
14 ”Shaping the Luxury Menswear Market,“ Lectra.com, July 2022, https://www.lectra.com/en/library/shaping-the-luxury-
menswear-market, accessed July 2023.
15 Gucci Website, “What is New: Gucci -Adidas,” https://www.gucci.com/fr/fr/ca/whats-new/adidas-x-gucci-c-adidas-
gucci-
products?gclid=787b4fcbf02e15eff75e2b5e69064502&gclsrc=3p.ds&&utm_source=bing_fr&utm_medium=cpc&utm_campaign
=FR%7CFR%7CSRC%7CBrand%7CCollections%7CU%7CCollaborations&utm_term=FR%7CFR%7CSRC%7CBrand%7CCollec
tions%7CU%7CCollaborations_Adidas+Collaboration+%5BFR+-
+FR%5D_gucci+adidas+collab_e&msclkid=787b4fcbf02e15eff75e2b5e69064502, accessed July 2023.
24
Zegna 524-021
16 Shaping the Luxury Menswear Market,“ Lectra.com, July 2022, https://www.lectra.com/en/library/shaping-the-luxury-

menswear-market, accessed July 2023.
17 “Best Quiet Luxury Menswear Brands,” opumo.com, https://www.opumo.com/magazine/best-quiet-luxury-menswear-
brands/, accessed July 2023.
18 “Why a Global Recession is Inevitable,” The Economist, November 18, 2022, https://www.economist.com/the-world-
ahead/2022/11/18/why-a-global-recession-is-inevitable-in-
2023?utm_medium=cpc.adword.pd&utm_source=google&ppccampaignID=18151738051&ppcadID=&utm_campaign=a.22bra
nd_pmax&utm_content=conversion.direct-response.anonymous&gclid=Cj0KCQjwho-
lBhC_ARIsAMpgModUKQFSBGPcGBGmOo6hYV0ny4th59KvFBPRswb8Xjwa58qvjwWDJb8aAj4IEALw_wcB&gclsrc=aw.ds,
accessed July 2023.
19 Statista, “Luxury Goods: In Depth Market Analysis,” Market Insights Report, Statista, June 2023, available at https://www-
statista-com.ezp-prod1.hul.harvard.edu/study/61582/luxury-goods-in-depth-market-analysis/, accessed July 2023.
20 “The Year Ahead: Gender-Fluid Fashion Hits the High Street,” Business of Fashion, December 16, 2022, available at
https://www.businessoffashion.com/articles/retail/the-state-of-fashion-2023-report-gender-neutral-fluid-fashion-gen-z-
consumers/, accessed July 2023.
21 Statista, “Luxury Goods: In Depth Market Analysis,” Market Insights Report, Statista, June 2023, available at https://www-
statista-com.ezp-prod1.hul.harvard.edu/study/61582/luxury-goods-in-depth-market-analysis/, accessed July 2023..
July 5, 2023.
July 5, 2023.
24 Gianluca Guarino, “78% of Luxury Fashion, Worldwide, is Made in Italy,” January 13, 2023,
https://www.theconservative.online/78-of-luxury-fashion-worldwide-is-made-in-italy, accessed July 2023.
25 Deloitte, “Global Powers of Luxury Goods 2022 A new wave of enthusiasm in luxury,” Deloitte, 2022.
26 Gianluca Guarino, “78% of Luxury Fashion, Worldwide, is Made in Italy,” January 13, 2023,
https://www.theconservative.online/78-of-luxury-fashion-worldwide-is-made-in-italy, accessed July 2023.
27 Claudio Marenzi, “How Italy Is Built On Fashion,” Google Arts and Culture,
https://artsandculture.google.com/theme/how-italy-is-built-on-fashion/gAIC9FJsetDDIA?hl=en “The Italian Textile
Industry,” ITMA services June 2022, chrome-
extension://efaidnbmnnnibpcajpcglclefindmkaj/https://itma.com/admin/itma/media/itma/ITMA/The_Italian_Textile_In
dustry/The-Italian-Textile-Industry.pdf, accessed July 2023.
28 Michelle Russel, “Deal of the Week: LVMH acquires majority stake in Nuti Ivo to integrate supply chain,” Just-Style.com,
June 7, 2023, https://www.just-style.com/news/lvmh-acquires-majority-stake-in-nuti-ivo-to-integrate-supply-chain/,
accessed July 2023.
25

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REV: S EPTEMBER 27, 2023

The High-End Fashion Industry

Moving to a One Brand Zegna

Zegna’ New Style

Zegna’s Targeted Marketing Approach

Zegna’s Store Network and Approach

Exhibit 1 Zegna Group: Timeline

Year Key Event

Source: Developed by casewriters from Company data.

Exhibit 2 The Zegna Group Key Data

a) Key Financials (in € thousands, unless otherwise stated)

2019 2020 2021 2022

b) Total Revenues Breakdown by Business (in € thousands)

2019 2020 2021 2022

c) The Zegna Group Revenue Breakdown: Direct v. Wholesale

2019 2020 2021 2022

Source: Developed by casewriters from company data.

d) The Zegna Group‘s In-House Production

Source: Company data.

Note: * including the Italian-Speaking Swiss Region Ticino.

Exhibits 3 The Personal Luxury Goods Market

b) Personal Luxury Goods Market Customer Nationality Breakdown

Country Made to Pricing

Key Luxury Brands in the Menswear Segment, Share Pricing, 2022-2023

Developed by casewriters from Capital IQ, accessed July 2023.

Exhibit 5 Zegna’s Old and New Style

a) Picture of Zegna’s 2017 Collection

Source: Company courtesy.

b) Zegna’s 2022 Collection

Source: Company courtesy.

c) Zegna’s Brand Positioning in 2022

Source: Company courtesy.

d) Zegna’s Net Promoter Score Positioning v. Peers, 2022

Source: Company courtesy.

Exhibit 6 The Triple Stitch

Exhibit 7 Examples of Zegna’s Essentials

Source: Company courtesy.

Source: Developed by casewriters from Capital IQ, accessed July 2023.

1 The European Commission, ”Textiles and clothing in the EU,” https://single-market-

16 Shaping the Luxury Menswear Market,“ Lectra.com, July 2022, https://www.lectra.com/en/library/shaping-the-luxury-

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