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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The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

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Send “thenational” to the following numbers or call the hotline on: 0502955999
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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Updated: January 20, 2025, 11:25 AM