Zegna Expects China Market In The Face Of Performance Crisis

By the end of 014, Zegna group had 525 stores, including 298 direct outlets.

In 2015, Zegna will make strategic promotion in cities such as Miami, New York, Osaka and Tokyo.

In the past two years, Zegna has added 200 employees.

The US media reported recently disclosed the financial data of Italy's privately owned clothing and textile company in 2014: sales fell 4.7% year-on-year, from 1 billion 270 million euros in 2013 to 1 billion 210 million euros in 2014; net profit fell from 71 million euros in 2014 to 71 million euros, down 39% over the same period last year.

Profits before amortization (EBITDA) fell 28% from a year earlier, from 257 million euros in 2013 to 185 million euros in 2014.

Still accounts for more than 90% of the company's total sales.

Despite the decline in performance, China is still the largest market for Zegna, followed by the US market.

Zegna CEO Gildo Zegna attaches great importance to China and

The impact of the tight market on men's clothing has also indicated: "we have taken measures to deal with it, and we will continue to increase investment in direct chain stores and distributors in North America."

Zegna said that the reorganization of the company started in 2013 and has acquired the right to gain control through the acquisition of wool farms in the new England District of New South Wales, Australia, thereby expanding its control over the entire production process.

Zegna said: "the company voluntarily undertakes social obligations, protects environmental responsibilities, and produces more than 5% of its net profit as public donations."

In addition, Zegna will continue to develop the Zegna oasis project (Oasi Zegna) and sponsor more young talents.

For example, the Ermenegildo Zegna Founder Scholarships, established by Zegna group, signed an agreement with the first batch of 14 scholarship recipients in to sponsor their global university tuition fees. They were born in Italy or Italy permanent residents and returned to Italy.

Zegna group also spent 20 million euros to strengthen the supply chain system in Italy.

Specific measures include the addition of new equipment to the garment production centres near San Pietro Mosezzo near Novara, the addition of new equipment for the production of leather products, coats and shoes in Parma; and the addition of knitwear equipment to the Verrone production site near Biella in the northern town.

The company said: "the establishment of these production centers is to ensure the quality of goods, improve service levels and comply with environmental hygiene standards."