Jeddah Jackpots: Taking Zegna on a desert detour
Zegna's expansion into Al Khayyat Mall, Jeddah, Saudi Arabia, is fueled by the region's burgeoning luxury market and the kingdom's progressive economic reforms under Vision 2030. With projections indicating a significant rise in millionaires and ultra-rich individuals, Saudi Arabia presents a lucrative opportunity for Zegna's global expansion strategy.
The strategic location within Al Khayyat Mall, coupled with Saudi Arabia's evolving consumer behaviors and retail landscape, positions Zegna for success in the region. Key success factors include a robust pre-launch marketing campaign, exclusive launch events, and post-launch strategies aimed at maintaining momentum and enhancing customer engagement. By capitalizing on Saudi Arabia's growing luxury market and aligning with Vision 2030 objectives, Zegna is poised to establish a strong presence in Jeddah and contribute to the kingdom's economic diversification efforts.
Full Project
About Project
Executive Summary
Client:
Duration:​
Zegna
10 Weeks
Topic:
Global Expansion
Role:
Project Lead
Team:
3 People
Secondary Research
To establish a strong foundation for our plan, we conducted extensive secondary research, exploring key areas such as: brand personality, brand as a property, product presentation, competitor analysis, financial performance, promotional activities, and retail store network. This research provided valuable insights into the brand's current position and future trajectory.
Country Proposal
Based on comprehensive analysis of current and future political, economic, and financial scenarios, coupled with luxury market growth projections, we proposed three countries and specific locations within those countries for Zegna's retail expansion. These recommendations were further refined by considering population demographics that align with Zegna's target consumer
Choice of Location
Jeddah, Saudi Arabia, was selected as the optimal location for Zegna's expansion due to a confluence of factors. The country's ongoing economic liberalization presents a vibrant market, and Jeddah, as a growing city, offers a particularly promising environment. This selection aligns with the presence of a consumer base that resonates strongly with Zegna's product offerings, despite the absence of a current Zegna retail presence in the city.
Store Location Analysis
To effectively define our target consumer, we undertook a comprehensive research approach, focusing on a deep understanding of Saint Laurent's core consumers: who they are, how they behave, and what they desire. This was crucial for retaining their loyalty. In conjunction, we researched our indirect competitors to identify opportunities for strategic market space expansion, encompassing aspiring spenders while remaining true to our core consumer base
Store Space Design
Promotional Plan
Our marketing approach utilized targeted advertising and a range of engaging strategies to connect with consumers. This integrated plan incorporated both digital and physical touchpoints, including influencer marketing, event marketing, and various online media initiatives. To ensure financial viability and strategic alignment, we also conducted a comparative budget analysis with peer luxury houses and developed a one-year financial forecast for store revenues, considering all pertinent factors.
Retrospect
In retrospect, this project provided significant learning opportunities in merchandising, retail expansion strategies, and financial planning. The rigorous research process involved in developing the country proposal deepened my understanding of market entry strategies. Furthermore, I gained valuable insights into the cultural background of Saudi Arabia, which enriched my understanding of the region. The financial aspects of the project, presented to industry expert Luc Ferriere, CFO at LVMH, offered invaluable practical experience.