Zegna’s Strategic Shift: DTC Drives Growth Amidst Revenue Dip
Ermenegildo Zegna Group reported a slight 1.5% decline in total revenue for fiscal year 2025, underscoring challenges within traditional wholesale channels. However, its Direct-to-Consumer (DTC) segment emerged as a powerful growth engine, confirming a strategic pivot that prioritizes direct engagement with customers and channel control.
DTC Channel: The Core of Zegna’s Resilience
The DTC channel now represents 82% of Zegna’s branded sales and showed a strong increase of 11%, offsetting the weaknesses observed in wholesale, which contracted by 15%. This shift highlights the company’s focused efforts to deepen customer relationships and optimize brand presence through their own retail stores and digital platforms.
Key Performance Across Brands and Regions
Zegna brand itself led DTC growth with double-digit increases, supported by the Americas region outperforming expectations. China and the EMEA markets also contributed positively but to a lesser extent. Meanwhile, sister labels Thom Browne and Tom Ford Fashion maintained steady and complementary roles in the group’s overall channel strategy.
Leadership’s Enduring DTC Vision
Ermenegildo Zegna’s executive chairman emphasized the long-term commitment to the DTC model, framing it as essential for sustainable luxury growth and mitigating exposure to wholesale market fluctuations. This focus reflects a clear vision of delivering tailored customer experiences and strengthening brand equity controlled directly by the company.
The Takeaway for DTC Brands
Zegna’s example serves as a practical blueprint for luxury and other brands considering a DTC-led approach. By amplifying direct customer interaction and reducing dependency on wholesale channels, businesses can better manage market risks and drive more consistent growth. The case demonstrates that even amidst modest overall revenue declines, a strategically executed DTC model can deliver resilience and long-term value.
