Ermenegildo Zegna: When Family Values Guide Global Expansion in the Luxury Industry

Abstract

Ermenegildo Zegna is one of the most prominent examples of an Italian family business becoming a world leader in the luxury fashion industry. Four generations of Zegna family entrepreneurs turned the company from a small woollen mill in northern Italy into an international supplier of premium fabrics and luxury apparel. The company makes more than €1.20 billion in annual revenues, operates 555 international store locations and owns production facilities all over the world. Despite delocalization of production, the company demonstrates how strong brand reputation and company values together with cohesive vertical integration choices can sustain business growth both locally and globally. This case shows how a successful global expansion strategy in the luxury industry can be based on the logic of family values, such as a commitment to excellence, innovation, employees’ wellbeing, community welfare and respect for the environment.