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
Tuesday 6 December 2011
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.”
Tuesday 6 December 2011
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
Tuesday 6 December 2011
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
Tuesday 6 December 2011
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
Tuesday 6 December 2011
Ermenegildo Zegna’s Positionning
Tuesday 6 December 2011
Ermenegildo Zegna’s Identity
Tuesday 6 December 2011
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
Tuesday 6 December 2011
Zegna’s SWOT (China)
Tuesday 6 December 2011
Ermenegildo Zegna’s Life Cycle and BCG Growth/Share Matrix Coupled
Tuesday 6 December 2011
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
Tuesday 6 December 2011
Thank you !
Any questions...?
Any comments...?
Tuesday 6 December 2011