Giorgio Armani, 74, is the President and Chief Executive Officer of the Armani Group and sole share holder of Giorgio Armani, one of the world’s leading fashion and lifestyle design houses, with 5,000 direct employees, 13 factories, and a direct network of 500 exclusive retail stores in 46 countries worldwide. Under Mr. Armani’s direction, Giorgio Armani, today stands as one of the few remaining independent, privately-owned companies in its sector, with a proven business strategy that has capitalised on the worldwide power and potential of the Armani brand name. Born on July 11, 1934, Giorgio Armani grew up with his sister and brother in the northern Italian town of Piacenza. In 1957, following two years of study in medicine at the University of Piacenza, Giorgio Armani decided to leave in order to pursue his interest in fashion, accepting a job as a merchandiser at Milan’s well-known department store, La Rinascente. Thereafter, Mr. Armani worked as a fashion designer for Nino Cerruti, and then as a freelance designer for various companies, an experience that resulted in an exceptionally rich and varied evolution of his style. After several years of working as a freelance designer, Mr. Armani was ready to devote his energy to his own label and followed his partner Sergio Galeotti’s suggestion that they open a company together. On July 24, 1975, the two business partners founded Giorgio Armani S.p.A. and launched a men’s and women’s ready-to-wear line. There are many products under the name of Armani such as Giorgio Armani, Giorgio Armani Privé, Armani Collezioni, Emporio Armani, AJ | Armani Jeans, A/X Armani Exchange, Armani Teen, Armani Junior, Armani Baby, and Armani Casa home interiors, offering a choice of lifestyles to the marketplace. In beginning the products were sold under the name of Giorgio Armani i.e.(GA) and later on the company diversified it business in Armani Jeans, Emporio Armani. The company’s product range includes women’s and men’s Clothing, Shoes and Bags, Watches, Eyewear, Jewellery, Fragrances and Cosmetics, Home Furnishings, Cell Phones. The Armani Group now also come with the Armani Hotels and Resorts under an agreement with Emaar Properties in May 2005. Recently Armani is also sponsoring for England Football team with their sports and casual dresses which is also a part of their marketing.
SWOT ANALYSIS OF ARMANI
Topmost brand in the fashion industry
Range of products are sold under the brand name which has been created over the years Commitment to customer satisfaction and comfort.
Price is on the higher side which caters only to the elite class. They are losing customers who are price conscious and opt for the competitors products Opportunities:
A large part of the Asian continent where Armani can penetrate into. Brand name created can be used to diversify into different sectors of business one of such initiative taken is to enter the hospitality industry. Threats:
Entry barriers in certain countries have stopped Armani from entering into a potential market which can act as cash cows for the company. Competitors like FCUK, Christian Dior, Diesel, Gucci etc are entering the fashion market in a great way.
Product is anything that can be offered to market for attention, acquisition, use or consumption that can satisfy wants or needs. Armani is one of the well known brands in the world with various products under its name. Different products are sold under different name. Because of the high earnings from Clothing sector (i.e. STAR) it has become possible for them to invest capital in different sectors. The group has such high standard brand name that all products in which ever they have invested have proved Stars for them. The Company now produces not only clothes but shoes, sunglasses, under garments, other accessories etc. And recently they have also signed agreement with Emaar properties...