Zegna Plans To Reduce Group Capital Expenditure In 2016

Famous in Italy

Group ErmenegildoZegna Zegna plans to reduce group capital expenditure in 2016.

Prior to this, despite the decline in passenger traffic, Zegna has invested heavily in global storefront construction.

According to Bloomberg news, in an interview with Hongkong in recent days, CEOErmenegildoZegna, who has the same name as the company, said: "last year, our capital expenditure was very high and we made some very important investments.

This allows us to reduce some of our capital expenditure in the next year. "

Zegna doubled the size of some stores in London and opened branches in Japan and Macao.

The sales volume of family business group Zegna in 2014 was 1 billion 210 million euros, down from 1 billion 270 million euros in 2013.

90% of group sales comes from exports.

Zegna has more than 500 stores worldwide.

The group entered the Chinese market as early as 1991 and opened the first shop in Beijing.

As the largest market in the group, sales in Greater China accounted for 1/3 of the total.

The United States is the second largest market for Zegna, followed by Italy and Japan.

In the Past National Day holidays, sales in China were higher than expected, while sales in other parts of the world also picked up.

This gives Zegna more confidence in its performance in 2016.

Zegna has yet to decide the extent of capital expenditure reduction, but CEO says it will be more cautious in 2016.

The group is currently integrating stores and sales outlets in China.

Like luxury brands like Prada and Burberry, Zegna has also been affected by China's economic slowdown and anti-corruption policies.

Many high-end brands, including Gucci, are trying to persuade Hongkong landlords to reduce the rent of their shops to reduce costs and deal with declining sales.

"The biggest challenge is the drop in traffic," CEO said. "There are fewer and fewer people in shopping centers and stores. You have to work out a reasonable plan to attract more customers."

In addition, he said that the decline in passenger traffic in August was mainly due to the decline in the RMB exchange rate and China.

The chaos caused by fluctuations.

However, CEO believes that sales will not decline in 2015.

In January this year, the Swiss central bank cancelled the Swiss Franc ceiling against the euro, which not only caused the global market turmoil, but also brought the Swiss Franc to the euro's highest exchange rate.

Most of the customization of the group

They are all manufactured in Switzerland. Zegna said in January that it had planned to negotiate with Swiss employees, most of them Italians, on salary issues, and may pass some of the new cost on to consumers.

In a Bloomberg TV interview Thursday, ErmenegildoZegna said there was no plan to raise prices in China.

"If we really want to adjust the price, we will lower the price in China and raise the price in Europe," he said.