Daria Nasledysheva's questions to Ermenegildo Zegna (ZGN) leadership • Q2 2023
Question
Asked for clarification on the softness in Chinese consumer spending, the allocation of marketing expenses across brands, and the outlook for marketing pushes in the coming months.
Answer
The softness is concentrated in Mainland China, while Hong Kong and Macau are seeing a strong comeback. Chinese tourist spending in Europe is still only about 50% of 2019 levels. Marketing spend is increasing for both Zegna and Thom Browne. Zegna's marketing is focused on high-end customer events, while Thom Browne's is driven by its 20th-anniversary celebrations and global events to boost brand awareness.