In the second quarter of 2025, Ermenegildo Zegna Group posted strong results, but the more telling signal for upstream textile suppliers came from Executive Chairman Gildo Zegna's subsequent interview: the Asia-Pacific region still holds significant untapped growth potential. The implication is clear—demand for premium menswear fabrics has not yet peaked, and whether China's textile clusters can capture this structural growth depends on product focus and supply chain efficiency.
Event Background
The Zegna Group, encompassing brands such as Ermenegildo Zegna, Thom Browne, and Tom Ford Fashion, saw Q2 growth driven primarily by North America and EMEA, while Asia-Pacific—particularly mainland China—contributed below expectations. Public financial data shows that the region's share of group revenue still has considerable room for improvement, contrasting with rising purchasing power among high-net-worth individuals in the area.
This gap signals two things: first, the Zegna Group will intensify channel expansion and brand investment in Asia-Pacific; second, its fabric procurement orders will increasingly favor regional suppliers located closer to end markets. For industrial clusters like Keqiao and Shengze, known for high-end synthetic and worsted wool fabrics, this represents a clear signal for category upgrading.
Industry Impact
In terms of fabric categories, the Zegna Group's core demand centers on superfine wool, high-count cotton, blended functional fabrics, and luxury casual suiting materials. Consumer preferences in Asia-Pacific differ from those in Europe and America—Asian high-net-worth clients show higher acceptance of lightweight, wrinkle-resistant, easy-care fabrics, while demanding more fragmented customization in color and texture. This means upstream mills cannot simply replicate European order specifications but must develop dedicated Asia-Pacific fabric lines.
From a supply chain rhythm perspective, the Zegna Group's expansion in Asia-Pacific will accelerate a shift from long-distance ordering to near-shore flexible supply. Traditionally, the group sourced a large portion of premium fabrics from Italian mills, but the replenishment cycle of Asia-Pacific retail stores requires shorter lead times. This directly benefits worsted fabric mills in Shengze and Nantong that possess quick-response capabilities, especially those already certified under OEKO-TEX or Global Organic Textile Standard.
Regarding price expectations, the price floor for premium fabrics is likely to rise under Asia-Pacific demand pressure. In the first half of 2025, average export prices for high-count wool fabrics from China increased by approximately 4%-6% year-on-year. If groups like Zegna intensify regional procurement, this trend will strengthen. However, brands demand extremely high process stability and batch consistency; small and medium-sized mills that expand capacity blindly may face quality control risks.