Coexist With The Crisis -- Fashion Brand Zegna Is Facing A Severe Test.

Gildor Zegna The luxury fashion brand is expected to grow slightly above 10% this year, but warned that the growth rate of the Chinese market will not exceed that of the past ten years.

"The growth rate of China's past 20%-30% has not been sustainable," he said. "This does not mean that the market will stop growing, but it means that we have to adapt to the growth rate of 10%-15%. I hope that every country we have in business can achieve this growth. " Bain & Company has recently lowered its expectations for the luxury market in mainland China, Bain.

Claudia D 'Arpizio, a partner in Milan, said Bain's expectation of China's luxury growth will be lowered from 18%-22% in May to 15%-18% at fixed exchange rate.

Burberry issued a profit warning last month before the expected slowdown in China was released. The British fashion group mentioned the slowdown in the Chinese market in its early warning. Its financial director said, "we know that this is not just our family."

"At a certain time, the market will become more mature, and this scene is beginning to be staged in China," said Armando Brachini, President of InterCorporate, a luxury goods and retail consultancy company in Milan.

"Japan and Hongkong achieved a growth rate of 20%-30% in 1970s, but then slowed down. Despite its limited growth in recent years, Japan is still the second most important luxury market in the world.

Zegna and other luxury goods companies have resisted the financial crisis, and many companies have seen strong growth as sales surged in China to make up for the cold market in Europe.

Now, as China's growth forecast slows, the performance of these companies will inevitably decline.

"We must always bear in mind the word" crisis "and learn to coexist with it," Zegna said. My duty is to do the best in a crisis, to fully grasp 2012, and to prepare for 2013. Don't ask me next year's situation, next year will be more difficult than this year.

According to the fixed exchange rate, Zegna's revenue increased by 17% last year to 1 billion 130 million euros, of which China's market grew by 28%.

Asian tourists in Europe Shopping To help the region achieve moderate growth in revenue. In 2010, Zegna's sales increased by 21%.

90% of Zegna's products are sold overseas. To emphasise the importance of China, Zegna's chief executive mentioned that Macao generates more revenue than Las Vegas. About 1/3 of Zegna's 50 new stores opened in 2012 are located in China.

Slowing growth in China has prompted companies to look for new and unpopular markets, such as Mongolia, Nigeria and Morocco, which already have shops, as well as Mozambique, Kenya and Angola, which are expected to open shops in two years.

"Our goal is the most high-end 1% or even fewer people," said Zegna.

"Since we have been serving these high-end people in London (and Paris and Milan), there is no reason why we can not serve them in their own country," he added.

"At present, the shops in these areas are doing well. Without trying, you will not know the depth of water. Entrepreneurs have to take risks. This is their mission. "

Zegna always pioneered a new market for European luxury companies. It opened its first store in China in 1991, and most of its peers did not develop a serious development strategy for China until 15 years later.

Zegna has denied that the company may seek initial public offerings in the short term. His grandfather founded a company in 1910 to combine British quality with Italy design.

Zegna said it would be surprised if the company failed to meet its target of raising revenue to 1 billion 500 million euros in 5 years earlier. If we can continue to achieve this year's "ten percent out of" sales growth target in the next two years, the company will reach the target of 1 billion 500 million euros in 2014.