IPO Plan Slim, Luxury Group Giorgio Armani Will Slash Jobs

Giorgio Armani (Giorgio Armani) is one of the world's top fashion designers.

Born in Italy in 1934, Giorgio Armani, founded in 1975, has become one of the most popular brands in the fashion world.

It is understood that IPO is far from expected and the global fashion retail market has changed dramatically, so that Italy luxury group Giorgio Armani is in trouble and will face the pain of massive layoffs.

According to Italy media reports, after Giorgio Armani announced the streamlining of its brand portfolio, reducing the number of employees has become an inevitable move for the group.

Affected by this, Giorgio Armani group's product manufacturing operator has announced plans to lay off 110 people at the Settimo Torinese plant in Milan headquarters.

It is reported that this is a factory specializing in the production of men's jackets and coats for Giorgio Armani's brand. The total number of employees is 180, and the number of layoffs is over 60%.

At the end of February this year, Giorgio Armani group announced that its 5 brands should be reduced to 3. From the spring of 2018, only the core brands Giorgio Armani, Emporio Armani and A|X Armani Exchange were retained.

Previously, the two independent brands of Armani Collezioni and AJ Armani Jeans will be merged into the layout of the above three core brands.

Reporters earlier reported that Armani Exchange will close all the UK stores, including the largest flagship store in the world.

Amarni Exchange is a young sub line launched by the group in 1991. It is mainly targeted at the younger generation of consumer groups. It is reported that London's opening up in 2007 was the world's largest Amarni Exchange flagship store. It will also be closed down. Obviously, the group's younger strategy is not satisfactory.

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Privately owned by Giorgio Armani, the more than 80 year old Giorgio Armani admitted that no successor had been found.

The release of the layoffs immediately triggered a protest by FILCTEM-CGIL, a Italy textile chemical energy producer association.

The union said that workers would not accept such a result and would resolutely resist it. They went on strike for two hours yesterday and protested until Friday.

It is reported that the workers' collective contract for the two years will expire in September this year.

Giorgio Armani founded the brand of the same name in 1975, and launched its first sub line brand Armani Collezioni in 1979. In 1981, it opened its first Emporio Armani store in Milan, and then launched women's wear Mani and leisure series AJ Armani, hoping to cover more markets through diversified brands.

In recent years, due to

Great changes have taken place in retail sales. Giorgio Armani group has realized that too many brands and too much management structure are not conducive to future development. Instead, it is a hindrance. Therefore, it is determined to start losing weight. After all, only a flat fast management mode can cope with the rapid change of consumer demand.

It is noteworthy that Girogio Armani group, unlike other luxury brand groups, has been insisting on its own production of sub line brand products and is fully self managed.

Some analysts point out that this advantage will benefit the implementation of Giorgio Armani group streamlining strategy.

But in the face of the reduction in production and oversupply of labour caused by the merger of brands, Giorgio Armani group has no choice but to lay off workers.

In addition, more analysts say that streamlining the brand may make changes in the personnel structure of the retail sector.

According to the data of reporters, as of the end of 2015, Giorgio Armani has 2983 stores in the world, of which Armani Collezioni and AJ Armani Jeans have 754 and 880 stores respectively. After Giorgio Armani officially abolished the two brands, the employees of relevant departments will also face the danger of unemployment.

According to statistics, sales of Giorgio Armani group decreased by 5% to 2 billion 510 million euros in 2016, the first decline in 10 years, while 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 expects to continue 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 its previous sales level.

Some analysts said that

The family management has fallen 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 has troubled the industry to observe parents for more than 10 years.

In the list of 65 Italy fashion and luxury groups listed on the annual listing of Pambianco Strategie di Imprese in Italy fashion consultancy, Giorgio Armani group ranked first in three consecutive years. However, analysts say that the IPO plan will be slim in view of the group's current performance.

As of press release, Giorgio Armani group did not comment on the news of layoffs.

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