Armani Makes Tough Choices For Constantly Compressing Business

Global

Sharp changes in the retail market to Italy

group

At the crossroads, constantly compressing business is becoming a difficult choice for the group.

According to the world clothing and shoe net, Armani group's Armani Exchange will close most of the UK stores. Amarni Exchange is a young sub line launched by Armani in 1991, mainly targeting the younger generation of consumer groups. According to the world clothing and shoe net, Lun don opened the world's largest Amarni Exchange flagship store in 2007. It will also be closed. Obviously, Armani's younger strategy is not satisfactory.

It is noteworthy that the family management of Armani group has been obviously lagging behind in today's fierce luxury fashion market. The question of who will succeed the more than 80 year old Giorgio Armani chief designer and CEO position has troubled the industry to observe parents for more than ten years.

According to the world clothing and shoe net, this store is part of the new brand strategy announced by founder Giorgio Armani last Friday. Armani group plans to streamline its brand to three by 2018, retaining only Emporio Armani, Giorgio Armani and A|XArmani, while Armani Collezioni and Armani Jeans will be merged into the above three series.

The Armani group is privately owned by Mr. Giorgio Armani, and Giorgio Armani, more than 80, admitted that no successor has been found.

Giorgio Armani talked about the new strategy and admitted that with the change of the times, streamlining the brand structure will be the main task in the future, and the product model that has been subdivided is lagging behind.

In addition to Armani, Ralph Lauren, Burberry, Marc Jacobs, Dolce&Gabbana and Paul Smith have adopted the same strategy to cut off some poor performance of the secondary line series.

According to the world clothing and shoe net, the growth rate of flagship brand Giorgio Armani of the group has recorded the slowest growth in recent years, which is obviously affected by the slowdown in performance.

Giorgio Armani said that the group will mainly develop Emporio Armani in the future and refurbish the brand retail stores. In order to enhance the shopping experience of consumers in the physical stores, it will display multiple series in the same store and make the products more diversified.

Giorgio Armani founded its same name clothing Brand Company in Italy in 1975, opened its first Emporio Armani store in Milan in 1981, and gradually developed into a comprehensive Brand Company with multiple branch lines.

According to Armani group's official website, Armani Collezioni and Armani Jeans are mainly sold in department stores and multi brand store stores through wholesale channels. In view of the downturn in the department store industry, analysts pointed out that this may be an important reason for GiorgioArmani to make a decision to streamline its brand.

Daniella Vitale, chief executive of Barneys, a high-end department store in the United States, calls it a necessary strategy. She points out that the products of Armani sub group's stores are relatively simple to consumers, eliminating redundant lines and improving the comprehensive performance of brand products, so that consumers can better find their own unique style in the brand series products.

Some analysts stressed that when brands have too many different series, too complex classification will confuse consumers, and streamline branches to help brands expand the breadth of products and price ranges.

Armando Branchini, vice president of InterCorporate, a Milan consulting firm, also believes that the streamlining of Armani's brand will help rebuild the image of the brand in the minds of consumers.

By the end of 2015, Armani group had 2983 sales outlets in more than 60 countries, including 165 Giorgio Armani, 338 Emporio Armani, 754 Armani Collezioni, 238 A|XArmani, 880 Armani Jeans, 198 Armani Junior and 56 gate stores.

According to the world clothing and shoe net, Armani group's sales decreased by 5% to 2 billion 510 million euros in 2016, the first decline in 10 years. The Group recorded an increase of 4.5% in 2015, while 16% in 2014.

Affected by the slowdown in China's economy and the decline in the number of tourists, Giorgio Armani is expected to face the challenges of the downturn in the retail market in 2017. Although it has started restructuring, it will take several years to recover to the previous level of sales.

In the list of 65 Italy fashion and luxury goods companies listed on the annual listing of Pambianco Strategie di Imprese in Italy fashion consultancy, Armani group ranked first in three consecutive years, but analysts said that the Armani plan would be slim in view of the sharp decline in Armani's current performance.

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