Gildo Zegna, chairman and chief executive of Ermenegildo Zegna Group, is bringing the legacy of his grandfather's brand into the future. Photo Ermenegildo Zegna Group
Gildo Zegna, chairman and chief executive of Ermenegildo Zegna Group, is bringing the legacy of his grandfather's brand into the future. Photo Ermenegildo Zegna Group
Gildo Zegna, chairman and chief executive of Ermenegildo Zegna Group, is bringing the legacy of his grandfather's brand into the future. Photo Ermenegildo Zegna Group
Gildo Zegna, chairman and chief executive of Ermenegildo Zegna Group, is bringing the legacy of his grandfather's brand into the future. Photo Ermenegildo Zegna Group

How Gildo Zegna is fashioning a future for his family firm


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“Tom Ford is glamour, Thom Browne is fashion, and Zegna I think, is more than luxury,” explains Ermenegildo ‘Gildo’ Zegna. He is chairman and chief executive of the gentleman’s outfitter Zegna and its parent company, the Ermenegildo Zegna Group.

Gildo led the group's purchases of the two American fashion houses: Thom Browne in August 2018 and Tom Ford in April 2023. To outsiders, grouping the trio of brands looks odd – bizarre almost – but Gildo is adamant the three are natural stable mates. “It's a luxury combination,” he says. “One helps the other, and I think this is very important for the luxury customer. This is all authentic, luxury and complementary.”

Thom Browne brings its high-fashion take on tailoring to the group, while Tom Ford is known for its megawatt glamour. Add to this Zegna's reputation for immaculate high-end menswear, and it becomes a multifaceted exploration of quality, originality and clarity of identity.

Tom Ford is the more glamorous of the three Zegna brands. Photo: Ermenegildo Zegna Group
Tom Ford is the more glamorous of the three Zegna brands. Photo: Ermenegildo Zegna Group

Ford and Browne will also bring something that Zegna lacks – womenswear. Both have well-established women’s lines and the hope is that this will lure a new customer base. Such thinking is part of Gildo's wider plan. “Each brand has a strong founder,” he explains. “I can lead in terms of value and long-term vision, but each is unique for its own sake, so we need to keep that legacy, that authenticity. DNA is key.”

The recent signing of Haider Ackermann to lead Tom Ford is another key element. “We are very happy indeed because I think that he can bring a new dimension to the brand. It's going to be a new chapter for Tom Ford.”

Gildo is the third generation to lead the company founded by his grandfather Ermenegildo Zegna – after whom he is named – in Piedmont, Italy in 1910. Today he is tasked with building a company on three fronts while retaining the foundational concept of respect, responsibility and uncompromising quality.

Mads Mikkelsen stars in Zegna's fall/winter 2024 campaign. Photo: Ermenegildo Zegna Group
Mads Mikkelsen stars in Zegna's fall/winter 2024 campaign. Photo: Ermenegildo Zegna Group

“We have our own textile platform, which I think is fantastic, and it is probably the best way to show that we take you from sheep to shop,” explains Gildo. The entire process is under the company's control, or “fully vertically integrated” as he described it.

“It is a headache, and it is costly, but we create innovation out of that, which becomes a very strong advantage not only for Zegna but for the other two brands. We buy the wool from our farm, cut, twist and finish the wool, and make our own clothing.

“You have to think slow and then act fast. This is the great thing about silent luxury. Before you get something out, you think twice. I mean, to get a shoe or knit to market, it's over two years of testing, checking and making sure it performs.”

Since it began in the early 1900s, Zegna has found that its customers' needs have shifted. Naturally, Zegna has evolved, too. A few decades ago, cut-to-perfection tailored suits and the finest wools money could buy were the clients' demands. Today, customers are more likely to favour a more casual wardrobe, better suited to a mobile lifestyle.

The farm-to-fashion house approach has helped Zegna sustain this change over time. Now, it focuses on high-end leisurewear such as lightweight cashmere crew neck jumpers, joggers made from its superfine 15milmil15 wool (named for being 15.2 microns in diameter), and triple-stitched deer skin trainers. All aimed at a man who demands comfort and quality whether on board a yacht, in the boardroom or lunching in St Tropez.

Part of this evolution also saw the group buying up other companies such as a silk weaving specialist Tessitura di Novara in 2009, and an Australian sheep farm in 2014 that produces world-class wool. “My grandfather created what they call the finest thread in the world,” he explains.

Named after the farm and flock that Zegna owns, Achillfarm wool is lightweight and fine, with one feature that Gildo clearly loves to repeat. “From one kilogram of wool you can get 120 kilometres of yarn,” he explains. “That's the distance from Milan to Trivero.”

Trivero, Piedmont is where the Ermenegildo Zegna house was founded over a century ago. Started as a rival of British wools of the day, Zegna senior understood decades before others that 'made in Italy' should be a marker of quality.

A true visionary, he also instinctively understood the benefits of looking after his workers. After building a mill and factory in the Piedmont hills, he built a community featuring a school, gym, pool and hospital. He also bought a large swath of land around the factory to be replanted with half a million trees, rhododendrons and other flowers in what today would be called rewilding. Now open to the public, it has become a haven for wildlife.

“It has become, you know, a kind of a national park. It's 100 square kilometres. It's 30 times the size of Central Park, New York just to give you the idea.”

Oasi Zegna is a manifestation of the founder's mindset and manifesto for the fashion house. Photo: Ermenegildo Zegna Group
Oasi Zegna is a manifestation of the founder's mindset and manifesto for the fashion house. Photo: Ermenegildo Zegna Group

Called Oasi Zegna, this land and the family house that stands within it are deeply symbolic for the family and emblematic of their grandfather's mindset.

“Oasi Zegna is our road to the future,” says Gildo. “We have the most beautiful asset of what we consider luxury. Because luxury is silence; luxury is the environment; luxury is to be on your own and re-energise. And this is the principle of sustainability.

“My grandfather was a visionary and his thinking was green and philanthropic; giving back and caring for the people working for him. These were the principles we have inherited. This is really where it all started and that's where our values come from.”

Such values help explain why Zegna has enjoyed a presence in the UAE since 2000. “The Gulf countries are really becoming the core for luxury. It used to be Hong Kong, but I think that the new world is here, and there is an energy here which is hard to find anywhere else.”

Twenty-five years of dressing men in this region has also gifted Zegna an understanding of how to create clothes that will not shift or bubble in the extreme humidity and heat. “You know, we sell very expensive clothes and we want to make sure that we guarantee only the best.”

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Graduated from the American University of Sharjah

She is the eldest of three brothers and two sisters

Has helped solve 15 cases of electric shocks

Enjoys travelling, reading and horse riding

 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: January 20, 2025, 11:25 AM