Ermenegildo Zegna, the Italian fashion house with a New York listing, has set its sights on the Tom Ford brand as a driver for its expansion in the luxury business. CEO Ermenegildo Zegna himself believes that Tom Ford has the potential to become one of the top 10 global fashion brands. Currently, Tom Ford ranks within the top 25 in the FashionUnited Index of Most Recognized Fashion Brands, which provides Zegna with the necessary exposure to expand in the accessories segment and potentially enter the womenswear market. Zegna plans to double the number of Tom Ford stores to 100 within the next couple of years and increase the brand’s revenue by more than 10% annually.
Zegna’s interest in Tom Ford also stems from the success of its new creative director, Peter Hawkings. Hawkings made headlines earlier this year with his provocative Milan show, featuring stiletto-heeled models in daring outfits. Zegna believes that Tom Ford’s expansion can help the company tap into the womenswear market as well.
Ermenegildo Zegna has successfully led his company’s transformation from traditional menswear to “leisure luxury” lines. This shift has resulted in a rise in revenue in the US market, and Zegna aims to replicate this success in China, a crucial market for luxury brands.
Zegna’s aggressive expansion strategy draws influence from his time on Fiat Chrysler’s board, where he learned the importance of scale from his mentor, Sergio Marchionne. Through recent acquisitions, including Thom Browne and now Tom Ford International, Zegna has transformed his company into a modern, high-end fashion house.
Despite acknowledging the challenges in the Asian market, particularly in China, Zegna remains optimistic about the prospects for Tom Ford. He believes there is untapped potential in Asia, and that the brand can thrive in the region.
While Zegna aspires to become an aggregator of luxury brands, he does not see his company as a competitor to giants like LVMH. However, he remains open to future opportunities and firmly believes that there is always room for growth and expansion.
Useful links:
1. Ermenegildo Zegna Official Website
2. Tom Ford Official Website
