To additional ensure its supply chain, Zegna teamed with Prada this yr to every buy 40 percent of the Italian cashmere producer Filati Biagioli Modesto, and Mr. Zegna mentioned Zegna could possibly use proceeds from the I.P.O. to further invest in Italian textile production.
Regulate in excess of generation has the included profit of making sure traceability and sustainability, an rising aim of the young technology of customers Zegna is courting. A person of the brand’s most celebrated property is Oasi Zegna, the sprawling Italian park in Trivero, Piedmont, the brand’s hometown, which was developed by Zegna’s founder to protect the area ecosystem that is 30 situations the dimensions of New York’s Central Park (as the corporation features in the investor deck it prepared for the SPAC). In the course of the interview, Mr. Zegna proudly pointed to his sneakers, made from recycled elements, and the actuality that the brand now has a system to reconfigure the scraps of cloth remaining on the reducing space ground so they no extended go to squander.
But even with high quality and supply chain on its side, Zegna, as a community corporation, will be competing with the French giants of luxurious that have invested a long time plucking up the world’s finest-acknowledged models. LVMH Moët Hennessy Louis Vuitton, which has amassed a secure of over 75 brands such as Tiffany & Corporation, Dior and Pucci, has grown to a marketplace capitalization of practically $400 billion. Kering, the proprietor of labels like Gucci and Saint Laurent, is well worth almost $100 billion.
“One aspect of the reason we did what we did is simply because of scale,” Mr. Zegna reported of the conclusion to go general public. “Scale — it’s our agenda — never inquire me how massive scale would be, but definitely even bigger than what it is proper now.”
He could not be drawn out to explore long run acquisitions, but Zegna took one particular of its first ways toward that to-do list with its acquisition in 2018 of the New York style label Thom Browne, whose shrunken suits and penchant for ironic interpretations of preppiness have made it popular among a young team of shoppers than the core Zegna clientele. Considering the fact that starting to be section of Zegna, the brand name has absent into kid’s use, with a robust presence in South Korea and China, and Mr. Zegna said there are ideas for additional growth. (Mr. Browne, who continues to be the brand’s resourceful head, and Rodrigo Bazan, its main government, joined Mr. Zegna to ring the opening bell at the New York exchange on Monday.)
A collaboration with the haute American streetwear brand name Dread of God in 2020 also helped heighten Zegna’s great aspect, and Mr. Zegna explained there were being a lot more these kinds of minimal version collections in the performs.
