To further guarantee its supply chain, Zegna teamed with Prada this yr to just about every acquire 40 p.c of the Italian cashmere producer Filati Biagioli Modesto, and Mr. Zegna mentioned Zegna might use proceeds from the I.P.O. to even more make investments in Italian textile production.
Control more than production has the added benefit of ensuring traceability and sustainability, an growing concentration of the younger era of prospects Zegna is courting. 1 of the brand’s most celebrated belongings is Oasi Zegna, the sprawling Italian park in Trivero, Piedmont, the brand’s hometown, which was established by Zegna’s founder to preserve the community ecosystem that is 30 times the dimensions of New York’s Central Park (as the corporation offers in the trader deck it well prepared for the SPAC). All through the interview, Mr. Zegna proudly pointed to his sneakers, produced from recycled components, and the reality that the model now has a system to reconfigure the scraps of fabric left on the slicing place flooring so they no for a longer period go to squander.
But even with excellent and source chain on its facet, Zegna, as a general public enterprise, will be competing with the French giants of luxury that have expended decades plucking up the world’s very best-known brand names. LVMH Moët Hennessy Louis Vuitton, which has amassed a secure of in excess of 75 models which includes Tiffany & Company, Dior and Pucci, has grown to a industry capitalization of virtually $400 billion. Kering, the owner of labels like Gucci and Saint Laurent, is worthy of just about $100 billion.
“One aspect of the rationale we did what we did is due to the fact of scale,” Mr. Zegna mentioned of the final decision to go general public. “Scale — it’s our agenda — really do not request me how large scale would be, but undoubtedly larger than what it is correct now.”
He could not be drawn out to focus on foreseeable future acquisitions, but Zegna took 1 of its very first techniques toward that to-do listing with its acquisition in 2018 of the New York style label Thom Browne, whose shrunken suits and penchant for ironic interpretations of preppiness have built it well known amid a more youthful team of shoppers than the main Zegna clientele. Considering that becoming element of Zegna, the manufacturer has gone into kid’s wear, with a potent presence in South Korea and China, and Mr. Zegna mentioned there are plans for further expansion. (Mr. Browne, who remains the brand’s imaginative 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 model Concern of God in 2020 also served heighten Zegna’s awesome factor, and Mr. Zegna claimed there were additional such constrained version collections in the will work.
