Zegna Brand Audit

Ermenegildo Zegnain China

Brand AuditProf. Cervellon

International University of Monaco

Marketing for Luxury Goods and Services

Justin d’Anethan

Tuesday 6 December 2011

Interesting Facts,Interesting Moments...

Beginning in 1910

British competition - creating momentum for quality and innovation

Ermenegildo Zegna goes abroad

The 50’s and the beginning of a new era

Providing textile for famous fashion brands

A dream realized, Ermenegildo Zegna is fully integrated

A family business - from Tivero to the world

First luxury menswear in China - a winning bet


Ermenegildo Zegnain Numbers and Figures

Revenues = 963’000’000 €

Number of employees = over 7’000

Estimated market share in the tailor-made suit industry (not menswear) = 30% +/-

“Over 90% of sales were exports to Europe, America and Asia, the latter accounting for 46%. China, Hong Kong, Russia, Brazil and India, together with a number of other emerging nations, account for 40% of the Group’s sales.”


How The Market Is Moving...

The luxury industry is growing

China represents the booming market today, likely to be for a long time...

Lower counterfeiting and greater education about luxury and quality brands on the consumer side

Need for digitalization and online presence

Cultural need for status and personal positioning in society

The ‘Bling’ factor still has importance in the mindset but customers are becoming more aware of heritage and tradition brands

Chinese consumers buy even if they cannot afford it


How The Market Will Be Moving...

Need for -flawless- experiences beyond the core product

Decreasing need of western brands to the advantage of more local ones

Increase in tourism

Absolute and aspirational luxuries are the two segments which will grow most


Who Is Ermenegildo Zegna’s Target Customer

Male

Shanghai, Beijing, Guangzhou, Tier II cities, International

High net worth

Between 35 and 50 years old

Strong education and a working position

High lifestyle

International dimension

How status pushes to go the extra step


Ermenegildo Zegna’s Positionning


Ermenegildo Zegna’s Identity


How promotion is done at E.Z.

Advertising

Magazines

Official Website

Sales

Celebrity Endorsement

Non Ad Promotion

Events

Fashion Shows

Social Network

Newsletters

Foundations - Oasi Zegna, Casa Zegna and Fondazione Zegna

Celebrities


Zegna’s SWOT (China)


Ermenegildo Zegna’s Life Cycle and BCG Growth/Share Matrix Coupled


Proposed Recommendations

Increase options and services online

clearer strategy on social networks

environmental friendly or ethical cause project in Mainland China

Start investing in Tier 2 and Tier 3 cities

Use Chinese celebrity for local advertising campaign (proposed: Bd Wong, Nicky Wu, Andy Lau,...)

Strive for further innovations


Thank you !

Any questions...?

Any comments...?


Zegna Brand Audit

Business

Transcript of Zegna Brand Audit