Mistakes are inevitable but fixable. “It’s impossible to control every single stage of every single product on your own. The important thing, when mistakes are made, is to examine them, take action, and correct them”, said Ermenegildo “Gildo” Zegna, CEO of the Italian luxury group, responding to a question about the Made in Italy supply chain. Interviewed by Business of Fashion, Zegna also spoke about his expectations for 2026 and his integrated supply chain, which he says is “at a higher level than Hermès”, even for leather.
Mistakes are inevitable
A recent note released by Bernstein estimated that the level of integration upstream of Zegna’s supply chain was even higher than that of Hermès. The reference is to products made in company-owned facilities. “I don’t know the numbers for Hermès”, replied Gildo Zegna, “but next year we will exceed 60% of products made in-house. This is thanks to the new footwear and leather goods factory (in Sala Baganza-Parma, ed.)”. The group’s CEO explains how the new factory was conceived as “a large atelier where artisans can work and communicate about their work. Because I want to make sure that stakeholders understand that we are not only an integrated supply chain for fabrics and ready-to-wear, but also for leather goods”.
On gangmastering practices
Speaking of supply chains, a question naturally arises regarding the investigations by the Milan Public Prosecutor’s Office, which uncovered gangmastering practices involving certain luxury brands. Here is what Zegna replied. “It’s a very complicated issue. Sometimes brands and suppliers make mistakes. It’s not fair to condemn all the hard work, the know-how of ‘Made in Italy’ and all the tradition we have had. What has been created isn’t perfect, but I think it’s a very good standard”. The entrepreneur points out that the percentage of suppliers involved in the investigations is very small compared to the overall volume. He believes that the Made in Italy bill “will be very useful for certifying all processes. So let’s work together to prevent these things from happening. I really think we need a national model”, concludes Gildo Zegna.
Expectations for 2026
When asked about expectations for the luxury sector in 2026, Zegna says he is “positive but cautious” because it depends on geopolitics. “Many variables are simply beyond our control. Ultimately, exchange rates hurt us more than customs duties. I am cautious, but ready to react. With an integrated supply chain, we can accelerate quickly when necessary”, explains Zegna. The entrepreneur is particularly cautious about the recovery of the Chinese market: “We have to work with what we have, be realistic, and avoid dreaming. If China returns to its old levels, great, but we shouldn’t rely on it too much”.
Photo by Zegna
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