Family firms still dominate luxury fashion industry

Italian family dynasties “have changed the global fashion landscape, and continue to dominate luxury goods,”

the

Wall Street Journal

noted

in a profile of the four siblings who run the Italian fashion house Etro.

Still majority owned and managed by their founding families are Etro, Loro Piana, Versace, Ferragamo, Trussardi, Zegna, Prada and Missoni, among many others. These brands continue to expand globally and have helped set the expectations of luxury consumers world-wide.

Jim Gold, president of specialty retail at Neiman Marcus Group, told the

Journal

that members of the fashion dynasties “want their brands to pass down to the next generation. It’s family first and business second.” He also said:

“They’re intelligent about how they’re carving up the responsibilities so [family members are] not stepping on each other’s toes.”

Robert Polet, former CEO of Gucci Group, told the

Journal:

“There is still a very strong respect for the elder and an acceptance of the family hierarchy. To get advice from two generations above you is much welcomed.”

(Source:

Wall Street Journal,

Jan. 26, 2012.)