CEO Gildo Zegna shares insights on Zegna Group balances family heritage with fashion innovation

It's very important for us to tell the market where we're going, in particular with the addition of a very important luxury American brand, Thom Browne for fashion, where we acquired the license of 30 years from their corporation to nurture the fashion business, in particular the women's, the leather accessories across the world. So since that was sealed last April, we wanted to tell the market what we were going to do with that and make them aware of our three-year plan, plus an update of the Zegna brand and Thom Browne brand, which we had when we went through the IPO a couple of years ago. I remember, I remember.

Yeah, well listen, I think what we decided before Wall Street that we would have done it anyhow regardless of Wall Street has been very sound. Number one, take advantage of the change in perception of the upscale male customer to move from a more formal to more informal luxury lifestyle. You see me dressed up like this is not because of today, that's my way to dress up. I don't wear a suit and tie any longer, but what I wear makes me feel, if you want, freer in style, comfortable, but still wearing very luxury product. So I think that this is part of the quiet luxury or stealth luxury, a new way of luxury, no more logo-driven, going very exclusive, doing very unique things with fine cashmere, fine wool, fine vicuña, fine linen, fine silk where we can. And so I think that this strategy was very apropos and came at the right time, and I think that it accelerated. Number two, I think that this aggregation brand strategy has been very helpful because with Thom Browne first and now with Tom Ford, we are going to make a better use scale-wise of our supply chain. We have an incredible supply chain that goes from sheep to shop, from super fine wool merino wool farm in Australia to bespoke service with Zegna, with Thom Browne, and from ready-to-wear couture. It's a unique thread and most of it produced in Italy. And so it's a way to offer innovation, service, and experience through our stores. So that's another important factor. I think that the fact that we believe in scale makes us raise the bar. Surely the New York IPO did so. And so I think that our organization has got stronger, and all together it made it happen. And at the end, do not overpromise, do what you promise but do it well. And I think we did it, and the goal after Zegna and Thom Browne is to do it again with Tom Ford regardless of how the market will be going for next year.

That's a good question. Values, believe in the value of the founder to do things well and to treat people working for you well with the concept of giving back. He was a visionary, he was a philanthropist, and he was an incredible entrepreneur. So I think that the legacy left is still alive in all of us. This morning I was with my son, he did a super presentation, probably better than mine. He is the fourth generation of the Zegna family, and this is what keeps you going. So it's passion, it's values, be authentic, and with the vision of giving back. And I think the family wants to maintain control of the company, it is united, and I think we are very proud of what we did on Wall Street. I think it was good timing and good move. And so now the next frontier is scale, and I think we have enough to do in the midterm. Then you know what will happen long term, we'll figure it out, we'll wait and see. Time being, today we focus on midterm. Yes, yes.

No, it's a little bit what I told you already. We have a clear strategy, one strategy for every brand, with a team that knows what it's doing, and so it's just a matter of execution. And then you have the umbrella of the group that supports the entire organization and provides shared services, production, negotiation, talent for the group. So I think it's like when you have a family that has grown, make sure that everybody is happy, each one has to play his or her part, and give opportunity by meritocracy. To me this is the most important thing I've learned from my father: you are not there because you have a name or because you are nice, you're there because you bring value. And I think that the New York Stock Exchange is making sure you keep bringing value to the shareholder. Then you know, I have a big responsibility surely to the family, but what about the external shareholder? I mean, it's a pleasure to do that, and I would say it has worked out pretty well, probably better than what I would have expected two years ago because of the circumstances. We had the ups and downs, geopolitical, forex, inflation, recession. But I think that the good thing about us is we are swift, we are quick to move, we have good information systems, and we try to get out of difficult situations and get into more favorable situations. So this mobility, this flexibility, this which is brought by entrepreneurship, our family has been pioneer and entrepreneurship. This is the right feeling, I think, which is a very much an American value too. And so I think that is helping out. Just be quick, don't do it tomorrow, do it today. Retail is today, not tomorrow. Tomorrow somebody else will get it. So I think that we have acquired the mentality of luxury retailing. We compare ourselves to the best, and we keep raising the bar.

Thank you, I hope to be back soon. Yes, bye.