Italian menswear brand Zegna is one of the most profitable luxury brands in China. The Greater China region makes up a third of the company’s revenue. In 2010, it was already one of the top five brands, which together accounted for 50% of the sales of luxury menswear in the country. These are some factors to its success.
Zegna successfully established their brand among China’s elite
When Zegna entered China in the 1990s, a Zegna suit cost three times a Beijing worker’s annual salary. Only “Rich Uncle”could afford it. “Rich Uncle” refers to a middle-aged Chinese man who seized on China’s early economic reforms and made a fortune by running a private business —an Italian suit let him flaunt his gains.
despite of losses, Zegna believed a promising future lay ahead
Zegna endured five years of operating losses. That didn’t change the company’s belief that a promising future lay ahead. At least, they were establishing their brand among China’s elite.
Zegna benefited a fashion trend created by Chinese president Xi jinping.
Zegna benefited from a trend created by Chinese president Xi Jinping whose jacket was similar to one of Zegna’s. No one ever would’ve predicted a politician would become a fashion influencer.