In a bid to leverage its formidable brand name, Tom Ford's fashion division, currently operating just 51 stores, is poised to potentially double its retail presence to 100 stores in the coming years.
The ambition was outlined by Gildo Zegna, Chairman of Zegna, the owner of Tom Ford's fashion arm, during an investor's day in New York. Zegna emphasised the brand's significant potential, stating, "This brand is much bigger than its business, it’s so powerful. Now we have to add pieces to it, and execute," as reported by the Business of Fashion.
Despite Tom Ford's fashion division being overshadowed by the revenue generated from its beauty and fragrance lines, the parent company, Estée Lauder, reported a robust 25 percent year-over-year growth in net sales for the fiscal year 2022. The acquisition of Tom Ford by Estée Lauder Companies (ELC) for 2.25 billion dollars in April this year marked a strategic move, with both Tom Ford and Chairman Domenico De Sole serving as brand advisors until the end of 2023.
The Zegna Group, owner of Tom Ford's fashion division, concurrently entered into a long-term licensing and collaboration agreement with ELC. This agreement spans 20 years for the fashion division, with an automatic renewal for an additional 10 years contingent upon meeting specific minimum performance conditions.
With a current presence limited to just nine countries, Tom Ford's fashion division sees immense potential for expansion as a top priority. The brand's restrained retail footprint not only leaves substantial room for growth but also facilitates strategic expansion into new territories, cities, and high-traffic locations. This approach aims to broaden the brand's reach, tapping into previously untapped markets.
As expansion unfolds, maintaining an aura of exclusivity will be paramount, with strategic store placements playing a pivotal role in achieving this objective.