Zegna'S Net Profit Growth Of 3.6% In Fiscal 2018 Will Continue To Be Strong And Multi-Channel Strategy.

Italy luxury group Ermenegildo Zegna (Zegna, hereinafter referred to as Zegna) announced the key financial data in fiscal year 2018, indicating that it will continue to strengthen its multi-channel development strategy in Greater China.

In the 2018 fiscal year ending December 31st, the key financial data of Zegna are as follows:

Sales fell 2%, to 1 billion 160 million euros, rising 0.4% at a constant exchange rate.

Net profit of 34 million euros, an increase of 3.6% over the same period last year

EBITDA (interest before interest and tax depreciation) increased by 0.7% to 143 million euro, accounting for 12.3 of sales.

Because of the unstable international economic situation and the decline in the number of tourists from China, the weak demand in the two largest markets in Europe and America has caused a certain impact on the performance of Zegna group in the current financial year.

However, Zegna group's CEO Gildo Zegna said he was satisfied with the performance in 2018.

In the past year, in order to enhance its competitiveness in product creation and production, Zegna has made many acquisitions, including acquisition of Pelle Tessuta control stake of leather fabric company, acquisition of a minority stake in Raghavendra Rathore Jodhpur of India luxury men's wear brand, acquisition of controlling shareholding of Bonotto SpA by high-end fabric manufacturer, and acquisition of Thom brand of American designer brand.

For more information on Zegna acquisition, see "ornate ambition" previously reported:

Valuation of 500 million dollars!

American designer brand Thom Browne is controlled by Zegna luxury group Zegna.

Italy Zegna Group invest in India royal family members to create luxury designer brand Raghavendra Rathore

Zegna said it is too early to predict the trend in the next few months, but he is optimistic about the future: "in 2019, after integrating the Thom Browne business, we will perform very well."

In 2018, the Zegna Group continued to donate 5% of their profits to projects supporting local communities, scientific research and environmental protection, including Oasi Zegna and Fondazione Zegna and a scholarship project launched in 2014, Ermenegildo Zegna Founder s Scholarship.

Multi channel strategy in China's market

On Tuesday, Zegna launched an online store on Tmall.

At the same time, they opened a new flagship store in New York.

Zegna said: "on the same day, we achieved significant development at both ends of the earth."

Greater China is one of the main markets of Zegna group, but Zegna did not disclose the specific share of the market. It only mentioned that the Asian market accounted for more than 50% of the total sales volume of the group, and the Greater China region was "an important part".

"Tmall is our ideal partner," he said.

We have our own multi-channel sales platform, but cooperation with Tmall is an important step in our market development.

The digitalization of the Chinese market is very high, especially in the sales channels related to smart phones. This cooperation will strengthen the interaction between us and consumers. "

The Zegna group will sell about 1000 luxury items in Tmall stores, including garments, accessories, leather goods, including some of Tmall's exclusive sales.

In addition, they will provide exclusive customer service for the most loyal customers.

Zegna group launched its first e-commerce business in China in 2016, and opened its first WeChat flash store in late 2017.

In December 2018, they also launched the CFA Team China capsule series.

Zegna said he is "optimistic" about the future of the mainland market, and believes that the market is still showing positive growth trends, while sales in Hongkong have begun to slow down.

Later this year, the group will open two stores in Chengdu and Xiamen.

90% of the Zegna group's sales come from the international market.

Zegna revealed that Russia and Canada had achieved "remarkable growth" in business, and sales in Korea and Japan were also excellent.

Zegna mentioned that they will open a new store in Phuket Island, Thailand.

By the end of 2018, Zegna group had 480 stores in the world, including 267 direct outlets, 213 franchises or distributors.

Later this year, new stores will be opened in Istanbul, Turkey and New Jersey, and the stores in Brazil, St Paul, Dubai and Beijing will be renovated.