The Italian supply chain “is getting badly used” by the French, says Ermenegildo “Gildo” Zegna. According to him, Italian manufacturing companies must be at the service of Italian brands. But the French are also using another made-in-Italy aspect: managers. “Now the focus should be on bringing them back home”, says the entrepreneur. Easier said than done, when giants like LVMH, Kering, Chanel, Hermès are so close.
Defending against the French
The French are also big in luxury because they use Italian resources, Zegna explains to La Stampa. “They have always been better than us in luxury because they brought home the best managers, from Italy. Now the focus is bringing them home. I brought some back and things have changed”. Italians, the entrepreneur argues, are good at innovation and decision-making, but they are ” less capable when it comes to execution”. Meanwhile, the domestic supply chain makes the French groups grow larger. “70% of the products sold by French luxury companies are made in Italy. We are getting badly used, we have to lead these companies to working for Italian brands”.
Learning to be done
However, Zegna acknowledges his cousins’ greater ability to plan and innovate: “The French plan and innovate on a three-year basis. I used to do it seasonally before Covid”. And looking even further ahead, he says “In ten years I will be gone. It’s not easy, especially at my age, but that’s what the market is asking for: the timing of succession, at all levels, is crucial”. Zegna’s last remark is tied to the stock market. “It was like going from the Italian league to the Champions League. The independent board members tell you what they think, then it’s up to you how you respond. After two and a half years, I’ve learned three things: never make false promises, be honest, and don’t hide any problems”.
Photo from archive
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