The Giorgio Armani Group is one of the famous clothing retailer in the world-wide range. It was founded in 1975 by Sergio Galeotti and Giorgio Armani in Milan, Italy. Nowadays Giorgio Armani groups has more than 5,000 employees in 13 factories in all over the world. All designing, producing and retailing will be done by these people. However, Giorgio Armani group divides into Giorgio Armani Prive, Giorgio Armani, Emporio Armani, Armani Collezioni, AJ or Armani Jeans, AX or Armani Exchange, Armani Junior, Armani Baby, Armani Casa and Armani Teen brands.
These qualification has their our meaning, own design, and also different product line with each other. The Giorgio Armani Group has more than 500 shops in all over the world. Giorgio Armani produces both classic and fashionable collection since it was founded. However, creator of Armani company was the first designer to begin to make use of celebrity marketing. In other words, Armani uses Hollywood starts to represent new collections, company takes whatever opportunity which can promote clothes to VIP, thus boosting its reputation as a designing industry of luxurious and elite high fashion attire.
Additionally, Armani has clothes for everyone, and for every style. Also, Armani customers can use Armani luxury hotels in worldwide. Mobile phones which has been producing with Samsung company also has good success in the market. Company has high reputation in every line of the business. 2. 0 Company History In 1976 Giorgio Armani presented its first “21 ready-to-wear collection” to public. In 1978 Giorgio Armani company got licensing agreement from GTF (Gruppo Finanziario Tessile), which gave to the company opportunity to invest a new headquarters that included showrooms and press offices.
However, year by year company got amazing success. Such as, in 1979 Armani Collection entered to American market, also created new lines to show in international fashion houses, such as, Armani Junior, Giorgio Armani accessories, Le Collezioni, Mani, underwear and swimwear collections. Moreover, license agreement with L`Oreal opened new designing styles to new the Emporio Armani and Armani Jeans collections. In1988 company got agreement with Luxottica Group Spa, which gave license to produce eyewear products. Giorgio Armani created first e-commerce presence in the USA with www.
After one year company established a joint venture with Zegna Group (51% Armani, 49% Zegna) and the company acquired the production and distribution facilities of the Armani Collezioni and Mani men`s lines from GFT. Later, Armani and Zegna launched Giorgio Armani Cosmetics, Armani Casa home interiors collection. In 2002, Armani got 16 store and 30 new store opening in well-developed cities of the world. These were Emporio Armni Jewelry, Armani Jeans, Giorgio Armani and Emporio Armani Eyewear stores. After year store number has increased to more 30 stores.
This year Giorgio Armani Men`s fragrances became worldwide best seller. During 1998 and 2003 the Armani Group spent 600 million Euros to improve strategic activities, developing manufactures, the expansion and renovation of its networks. In 2007, Giorgio Armani reached to Dubai, with its first Armani Residence. Also, this year Armani got agreement license with Samsung mobile company to product Samsung & Emporio Armani cell-phones and TVs. In 2010 Armani announced Armani Hotel in Milan. In 2011 year the Giorgio Armani Group got 500 stores in 46 countries of the world.
Armani company concentrates to design clothes, additionally, eyewear, watches, beauty product, perfumes, skin care products and so on. Giorgio Armani is one of the high-end label specializing in clothes, glasses, cosmetics and perfumes. Armani boutiques divided into specialty clothiers and select high-end department stores.
However, Armani lines have very good quality in luxury fashion clothes. However, Giorgio Armani group has several lines, which have some difference between each other. For instance, Armani Jeans, Emporio Armani, Armani Exchance, Armani Junior, Armani Collezioni and so on. Armani Collezioni products have high quality, but more expensive prices than other Armani collections. Armani Collezioni and Armani Prive have the same line and price in league of Emporio Armani. These days, Armani Collezioni less fashioned collection than other labels.
Customers can easily differentiate Armani Collezioni product with first “G” and “A” letters in the outside of the clothes. However, this label products are high-demanded in Milan and Paris. Another collection is Armani Jeans label. It was created in 1981 by Giorgio Armani, then it became bridge-line collection of denim-related clothing. Armani Jeans specialized to design jeans for men and women. Additionally, there are 15 freestanding Armani Jeans stores in the world. Armani Jeans has 16 stores in worldwide range. However, A/X or Armani Exchange is one of the famous and profitable brand of Armani Group.
It was created in 1991 by Giorgio Armani Group in the United Stated of America and nowadays it has 165 boutiques in 46 counties of the world. Armani Exchange mostly geared towards to young adult customers and features urban style. Moreover, Armani Exchange produces jeans, T-shirts, sports coats and polos for Men and Women. Company uses to product contemporary design for young adults and older teens with fashionable style. However, Armani Exchange is more available of all the Armani lines and mainly retails to the American market. Just in the USA 73 stores are available.
Armani Group has been developing its cosmetic product since 1988 when company got agreement license with L`Oreal. Company features cosmetics, skin care, perfumes and colognes as well. All cosmetics products of Armani Group are available in Armani boutiques in worldwide. However, company invests in the fine dining industry. Moreover, in the world there are 14 Emporio Armani and Armani Jeans cafes, also Armani Bar, Armani bookshop, Armani Libri are available in the world. Additionally, Armani Fiori is a confectionery which is well known as Armani Dolci.
Additionally, Giorgio Armani has some Armani Hotels and resorts in worldwide. In 2004, Armani Group signed an agreement with Emaar Properties to build at least seven luxury hotels, and also three resorts. Also, Giorgio Armani was responsible to design interiors and style of the hotels. For instance, Giorgio Armani opened its Burj Khalifa hotel at Dubai with 39 floors, 160 guest rooms and suites with 144 residences. Moreover, Armani is trying to design interiors of the Armani Residences within the skyscraper, and also some special kind of product line with Armani/Casa.
This line is full of home furnishing collections. Nowadays, Armani has several number of hotels and resorts in Dubai, Milan, London, Jeddah, Moscow, New York, Tokyo, Delhi and so on. (Gioegio Armani S. p. A – P. IVA, 2012) 4. 0 The founders dilemma However, business will use this statement if the company that is built on the basis of a strong and charismatic founder and leader. Also, its one of the competitive advantages of the company. Armani organization is a classic case of founders` dilemma.
In other words, the CEO of the company Giorgio Armani every time thinks about company`s future, and whatever he does its all to get success in future, to develop and enlarge the company. Giorgio Armani should formulate a business structure of the company with his key management people to put in place a definite strategy that identifies and nurtures future and upcoming leaders who can control business even after demise of any single individual. However, it has some importance in the clothing retailer as the personality, concept, and ideas of company`s designers prove to be real competitive advantages.
Brand dilution due to over-stretch However, when people start business in the market, the first reason is to ear more profit and to enhance shareholder value by maximizing income. This can be reason that individuals prefers to invest in branding. Moreover, strong brands provide companies with powerful tool to enter newer markets worldwide, also with limited investments. Because, they do not need additional payment to develop or to show brand`s reputation.
Also, well-known brand gives to company numerous revenue streams. However, lots of the strong and well-known brands in the world have leveraged their brand equity and extended their brands into newer product categories, newer markets with newer market segments. Such as, Giorgio Armani has very strong business strategy. Moreover, not only in fashion of the clothes, but it has extended its name into different types of categories of the business. Such as, Armani Hotels, Armani Jewelry etc. Somehow, nowadays Armani competitors like Calvin Klein and Pierre Cardin trying to go in such way of business. They also wants to use brand name on wide ranges of business.
Whence, all these companies got premium products with their exclusivity. But, Giorgio Armani does it better and faster than competitors. (Roll, 2012) 6. 0 Managing Brand Structure Armani portfolio of brands on the fashion segment, as in lots of the other markets that its works in, Giorgio Armani has the biggest challenge in the future, somehow it will be managing this portfolio. Due to, company goes into different territories. Here company has to communicate with different types of consumers. Moreover, company should represent different personalities to different market.
It becomes quite difficult to maintain all marketing contacts, sales and other activities. Armani using same brand name in all its business developments. Somehow, it will be easy to become one strong corporate in the world, also company has to tread carefully in the future. (Roll, 2012) 7. 0 Maintaining financial independence Armani company is a scarcity from a financial perspective as well. However, Giorgio Armani is only shareholder of his company since it was founded. Also Armani never take loans from banks. These types of companies are very rare.
Also, company has good managed operating profits since 700million Euros were invested to business in 1999. In other words, company has its own financial independence. Giorgio Armani will control all financial statements of the company by himself, also no need to share profits. Because whole company is owned by one person. Due to this, Giorgio Armani became 127th billionaire of the world, and 3rd billionaire in Italy. Armani company became well-known in fashion industry of the world, due to this it takes a considerable time for the concept and products to take base in the current market.
Corporation do not have day-to-day financial pressures. Armani got key of success in the business with such kind of factors in financial independence. However, it’s a bit difficult to control whole business alone. In other words, lots of famous industries of the world has the same type of management. But, they do not have same success as Armani has. (Perfumes Review, 2012) 8. 0 Sustaining consistent brand personality Becoming number one fashion brand is not easy as well. However, its personality and identity in the marketplace will help to increase its reputation in the society.
One of the difficulties of building strong brand in business is creating and supporting a personality that is relevant and one that pertinent with the customer. However, Giorgio Armani also had this kind of problem with its presence in diverse markets, very broad brand portfolio and attracting customers, meeting huge challenges in building a relevant and resonant personality as well. Armani company`s future will depend on growing competitive advantages in the fashion industry and growth of brand portfolio, creating and supporting its personality. Also, these factors will help on developing business.
Strategic business plan of Giorgio Armani However, Giorgio Armani wants to shows its reputation and luxury products with the help of world starts. In other words, in their advertisement and shows in fashion weeks company tries to attract more customers with world starts. Such as, football player Christiano Ronaldo, singer Rihanna, Petty Kerry, Madonna and so on. They wear Armani clothes in shows and ceremonies. And it will give opportunities to develop company reputation. However, in the Annual Academy Awards ceremony gave to the company glittering ritual, the red carpet, and the galaxy of the Hollywood stars.
This ceremony will be held with stars and the glamour has been the premium and exclusive fashion wear from the Armani luxury clothes and accessories. Additionally, Giorgio Armani wants to be number one brand in every line of business, such as hospitality, fashion and designing, beauty and cosmetic product lines and so on. Moreover, Armani brand is everywhere. For instance, cell-phones, clothes, cosmetic and beauty care products, perfumes, hotels, cafes, even night clubs as well. Its special type of development of company.
However, company makes all type of product and service line for VIP with its luxury products. All products and features are with high quality, more attractive, fashionable and well designed with the latest fashions of the world. Additionally, company has amazing reputation and success in all of its lines. 10. 0 Competitors As in all business, Giorgio Armani also has lots of competitors in the international markets. Such as, Chisrtian Dior, Versace, Louis Vuitton, Dolce & Gabanna, Hugo Boss and so on. Giorgio Armani producing high class luxury products and features to break its competitors.
Also, good manufactures and raw materials with excellent qualities helping to become Armani product number one in the worldwide market. However, Armani company uses its best product qualities, new modern design, attractive fashion to force with competitors and to attract more customers. Additionally, top models, superstars, Hollywood stars, football players, singer help to show Armani product to the public. In other words, Giorgio Armani keeps in touch with well-known people of the world to attract more people in their shows.
In designing business the best way to get success its to become well-known to the world. So its easy to the company to use superstars` help on it. Additionally, 5000 employees of the Armani Group doing their job very well. In other words, all new designs and new fashions gets successful in short times. Because, Armani designers and employees use high class quality raw materials and good manufacturing system to produce product. Also, Giorgio Armani is not only in clothing retailer, it has spread business lines, for instance, hotels, restaurants, Armani mobile phones, watches, glasses and so on.
These spread production line helps to Armani brand to become number one brand in the world. Because of, all product and services under “Giorgio Armani” name. It means everyone knows Armani brand in the world. Also, company has its high reputation in all business lines. Due to, high qualities of production, luxury service and products for VIP. Additionally, it gives amazing numbers of profit to the company. Such as, in 2012 company`s annual turnover of $1. 6 billion and a personal fortune became $7 billion. 11. 0 Conclusion
Giorgio Armani has been developing its fashion, design, business strategy since 1975. During this period Armani could because one of the luxury brands of the world. However, not only in clothing retail, but also, it got success in hospitality, cosmetics, jewelry, restaurant cafes and also in technology too. Somehow, Armani has agreement licenses with famous companies of the world, for instance, Zegna, L`Oreal and so on. Before entering new market and before producing new type of product, Armani becomes partners with special organizations to decrease competitive risk in the market.