Writer: Jochen Writz
II.Background of the Company:
Giordano was founded in Hong Kong in 1980 by Jimmy Lai. In 1981, it opened its first retail store in Hong Kong and also began to expand its market by distributing Giordano merchandise in Taiwan through a joint venture. In 1985, it opened it first retail outlet in Singapore. Responding to slow sales, Giordano changed its positioning strategy in 1987. Until 1987, it had sold exclusively men’s casual apparel. When Lai and his colleagues realized that an increasing number of female customer were attracted to its stores, he repositioned the chain as a retailer of value-for-money merchandise, selling discounted casual unisex apparel, with the goal of maximizing unit sales instead of margins. This shift in strategy was successful, leading to a substantial increase in turnover. In 1994, Peter Lau Kwok Kuen succeeded Lai and became Chairman. III.Findings:
1.Describe and evaluate Giordano’s product, business and corporate strategies. Product and Business: Giordano is a retailer of casual clothes targeted at men, women, and children through its four company brands, Giordano, Giordano Ladies, Giordano Junior and Blue Star Exchange was operating over 1600 retail stores and counters in some 31 markets in the Asia Pacific and Middle-east region. Under a new Management team, they realized that an increasing number of women were attracted to its stores. Giordano changed its positioning and started selling unisex casual apparel. Its Mainland China, Hong Kong, Japan, Korea, Singapore and Taiwan. Other countries in which it had a presence were Australia, Indonesia, Malaysia and Middle East. In its main markets there were 1478 Giordano and Giordano Junior Stores, 27 Giordano Ladies stores, and 132 Blue Star Exchange stores. In most geographic markets serviced by Giordano, the retail clothing Business was deemed to be extremely competitive.