Analysis of Armani

Background of ARMANI
Giorgio Armani S.p.A., commonly known as Armani, is an Italian luxury fashion
house founded by Giorgio Armani which designs, manufactures, distributes and
retails haute couture, ready-to-
wear, leather goods, shoes, watches, jewelry, accessories, eyewear, cosmetics and h
ome interiors. It is considered Italy’s second-biggest fashion group behind Prada.
The brand markets these products under several labels: Giorgio Armani Privé, Giorgio
Armani, Armani Collezioni, Emporio Armani (including EA7), Armani Jeans, Armani
Junior, and Armani Exchange. The brand utilizes the association of the Armani name
with high-fashion, benefiting from its prestige in the fashion industry. In 2016,
estimated sales of the company were around $2.65 billion. In 2017, Giorgio Armani
announced that his company will close two of its fashion labels, Armani Collezioni and
Armani Jeans, as part of the restructuring process for his company. While Armani
Collezioni will merge back into the "Giorgio Armani" line, Armani Jeans will be mixed
with the Emporio Armani line due to their similarities in styles and the use of the same
brand logo.
Giorgio Armani is in collaboration with Emaar Properties, creating a chain of luxury
hotels and resorts in several big cities including Milan, Paris, New York, London, Hong
Kong, Los Angeles, Tokyo, Shanghai, Seoul, and Dubai. The company already
operates a range of cafés worldwide, in addition to a bar and nightclub.
Strengths in the SWOT Analysis of GIORGIO ARMANI :
1. Brand Value: Giorgio Armani is considered to be the topmost brand in the
fashion Industry. It has been part of the Forbes list of most powerful brands
from the last 5 years. The Armani name has become the most prestigious name
in the industry.
2. Giorgio Armani: Giorgio Armani, the founder and owner has a net worth of
$7.1 billion and is ranked 196 on the Forbes list of top 200 billionaires in the
world. He has been leading the command of the company from its foundation
and has been instrumental in the success of Armani as a brand.
3. Hand Stitched Clothing: Giorgio Armani is popular for hand stitched clothing.
Apart from machine stitching, it has a made to measure line of apparels which
are hand stitched according to the measured size of the customer
4. Designs – A fashion brand does not become popular unless and until it actually
has some great and unique designs up its sleeves. And that is what Giorgio
Armani full of – Quality designers who are hand selected from the best design
schools across the world. The dresses, the stitches and the overall look and
design as well as finishing of each Giorgio Armani outfit is unique and beautiful.
You should look at some of the interiors of automobile brands done by Armani
or their travel bags. The designs are absolutely fantastic.
5. Innovating marketing – Giorgio Armani is known for his
innovating marketing tactics. We all know that models are supposed to be stick
thin but the trend was actually started by Giorgio Armani, who banned any
model with an even moderate Body mass index. He loved zero figures and only
hired them for showcasing the clothes. Besides this, the Armani brand was the
first one to display a fashion show live on the internet to the worldwide
audience thereby making it a grand event.
6. Strong tie ups – Giorgio Armani has massive tie ups across the celebrity as
well as the corporate world. There are many premium automobile brands which
hire Giorgio armani for their interior decor thereby giving the automobiles an
ultra premim look. Similarly, he is known to be the designer whom celibrities
like Lady GAGA and others go to and revere in his costumes. There are whole
sports teams for whome Giorgio Armani has designed clothing. Such tie ups
with strong brands ensures the glitz and glamour of Giorgio Armani.
7. Brand experience – The measure of a brand’s positive experience is
what people say after they have stepped out of the store. A study carried out
the influence of the brand Giorgio Armani and how influential they though the
brand was.
Weaknesses in the SWOT Analysis of GIORGIO ARMANI :
1. PETA Controversy: Giorgio Armani was criticised by PETA for using animal
fur in its clothing line. This created an uproar in animal lovers and a bad
impression about the brand. The controversy lasted for about 7-8 years after
which Armani reneged on a promise to stop using animal fur in any of its
products.
2. Limited Global Presence: Giorgio Armani has a limited presence globally in
only about 36 countries whereas some of its competitors like Dolce & Gabbana,
Christian Dior etc. are sold over 50 countries.
3. Higher Price: Armani products are priced higher and thus it caters exclusively
to the top of the pyramid. It loses out onto many customers due to the
high pricing.
4. Lack of Scaling opportunities – With the ultra niche segment that Giorgio
Armani has chosen, there is a lack of scaling opportunities and therefore the
brand will always be a niche brand meant for the ultra chic crowd. Naturally,
this affects the year on year growth patterns of the brand.

Opportunities in the SWOT Analysis of GIORGIO ARMANI :
1. Expanding their market: Armani should consider expanding its target
market to enhance customer base and hence customer loyalty. This will also
mean decreasing the price and producing in high volumes.
2. Innovative Products: The young and creative staff of Giorgio Armani should
innovate into newer designs and promote the products using digital media.
3. Global Expansion: Armani should look forward to expanding globally
especially to the emerging nations considering the increasing disposable
incomes of people from the emerging nations.
4. More tie ups – There is always scope to tie up with more corporates and more
and more celebrities because it is an ever growing sector and that is where the
maximum business will come for Giorgio Armani.
Threats in the SWOT Analysis of GIORGIO ARMANI :
1. Lower customer base: Since Armani is catering to a very premium market,
it has a small customer and hence customer loyalty from these customers is a
necessity or Armani to be profitable.
2. Brand Duplicity: Brand duplicity has been a threat to the industry and stricter
norms are required to stop the illegal practice which affects the sales as well
as the brand value of Armani.

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Background of ARMANI

Giorgio Armani S.p.A., commonly known as Armani, is an Italian luxury fashion

house founded by Giorgio Armani which designs, manufactures, distributes and

retails haute couture, ready-to-

ome interiors. It is considered Italy’s second-biggest fashion group behind Prada.

operates a range of cafés worldwide, in addition to a bar and nightclub.

Strengths in the SWOT Analysis of GIORGIO ARMANI :

1. Brand Value: Giorgio Armani is considered to be the topmost brand in the

and has been instrumental in the success of Armani as a brand.

are hand stitched according to the measured size of the customer

or their travel bags. The designs are absolutely fantastic.

5. Innovating marketing – Giorgio Armani is known for his

audience thereby making it a grand event.

ultra premim look. Similarly, he is known to be the designer whom celibrities

7. Brand experience – The measure of a brand’s positive experience is

2. Limited Global Presence: Giorgio Armani has a limited presence globally in

Christian Dior etc. are sold over 50 countries.

this affects the year on year growth patterns of the brand.

1. Expanding their market: Armani should consider expanding its target

mean decreasing the price and producing in high volumes.

3. Global Expansion: Armani should look forward to expanding globally

especially to the emerging nations considering the increasing disposable

incomes of people from the emerging nations.

maximum business will come for Giorgio Armani.

Threats in the SWOT Analysis of GIORGIO ARMANI :

1. Lower customer base: Since Armani is catering to a very premium market,

necessity or Armani to be profitable.

as the brand value of Armani.

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