About the company : (include number of employees, mission and vision, brief history, probably

can write about the corporate governance or the heads and all)

Headquarters​: Milan, Italy

Number of employees​: ​7,309 (2019)
Revenue of the company​: US $169 million (2018)

Business sector​: Giorgio Armani S.p.A. ​is a premium line Italian luxury ​fashion house​. It is
primarily into designing and manufacturing of clothes, watches, shoes.

About the company​: Giorgio Armani founded the Milan based fashion house in 1974. Born and
brought up in Piacenza, Italy is the only chairman as well as the sole shareholder of this vast
empire. Armani has a unique, opulent design which the elite class of the society finds it very
appealing. It has now expanded into 31 countries with about 250 brand stores. It has several
labels under it like the AJ Armani Jeans, Emporio Armani, Giorgio Armani, Armani Exchange,
which design, manufacture and sell products like wallets, jewelry, watches, clothes, etc. It
aspires to create products that transcend fashion and aspire for perfection to its customers. The
company is valued at $3.7 billion and was ranked by Forbes at 97th position in the World’s most
powerful brands list.

https://www.marketing91.com/marketing-strategy-armani/

Giorgio Armani ​: The majority of Armani's fortune is derived from his ownership of Giorgio
Armani SpA. The Milan-based fashion retailer had revenue of 2.3 billion euros ($2.7 billion) in
2017, according to filings with Italy's business register.
The company's valuation is based on its 2017 financial results and the average enterprise
value-to-sales, enterprise value-to-Ebitda and price-to-earnings multiples of five publicly traded
peer companies: Salvatore Ferragamo, Ralph Lauren, Burberry Group, Hugo Boss and LVMH
Moet Hennessy Louis Vuitton SE.

The valuation was updated on Sept. 26, 2018 to reflect the company's 2017 results and to add
LVMH to the peer group. These changes led to a decrease in the net worth calculation of about
$1.6 billion.

Armani also owns 2.4 percent of eyewear-maker EssilorLuxottica SA, based on a 4.6 percent
stake he held in Milan-based Luxottica Group before it completed its merger with Paris-based
Essilor in October 2018. Luxottica spokesman Marco Catalani said in a February 2019 email
that Armani is "currently an EssilorLuxottica shareholder."

The value of his cash investments is based on an analysis of dividends, insider transactions,
market performance, taxes and charitable contributions.

It was founded by ​Giorgio Armani​ and Sergio Galeotti.

Brands:
https://en.wikipedia.org/wiki/Armani

1.1​Giorgio Armani : “The perfect union between harmony and elegance”

1.2​Emporio Armani: “A contemporary and trendy spirit that highlights every person’s
individuality”

1.3​Armani Collezioni
1.4​Armani Exchange
1.5​Armani Junior
1.6​Armani/Casa
1.7​Armani/Dolci
1.8​Armani/Fiori
1.9​Armani/Hotels

Giorgio Armani recognizes the ​need ​for targeting the young adult market. Emporio Armani is the
result of that recognition. Emporio Armani is an upscale label intended for individuals in their
20’s and 30’s. The label is chic and sporty, and, at the same time, features ready-to-wear (RTW)
clothing and accessories.

Emporio Armani is known as a diffusion brand. It is considerably cheaper than the other Armani
lines. The line targets not-so-wealthy customers so that they can be introduced into the fashion
world of Armani. Giorgio Armani Privé, and Giorgio Armani, are two of the most expensive
lines in Armani fashion.

Giorgio Armani is considered as one of the most expensive clothing labels in the world. It
includes ready-to-wear, eyewear, perfumes, cosmetics, and accessories for men and women.
The line is extremely high end, as the items are genuinely intended for very wealthy and
prominent individuals.

Read more:​ ​Difference Between Giorgio and Emporio Armani | Difference Between
http://www.differencebetween.net/object/difference-between-giorgio-and-emporio-armani/#ixzz6
2QhLcu6M

Social Responsibility:
https://www.armani.com/in/armanicom

Environment: ​The manufacturing sites, premises and stores are periodically monitored
to ensure regulatory compliance and to foster in them a continuous improvement in the
environmental performance, with the reduction of any possible waste of resources and
materials.
The main commitments of the Group include:

• the involvement of all staff, through communication and initiatives aimed at raising
awareness in order to reduce the consumption of paper, water, and electricity;

• the use of the best available techniques to optimize consumption and minimize waste
in the renovation of its buildings;

• the adoption of operational methods and organisational aspects that take

environmental protection into account;
 • the attention to the differentiation of waste for recycling, carried out within the Company
and with the intervention of outside parties.

Packaging:

Even the paper used for packaging and office activities is the subject of particular
attention as regards the certification of its origin, separate collection, and recycling.For
this reason, the Group has chosen to adopt and develop a purchasing policy that
provides for the procurement of paper and cardboard, the selection of products made
from virgin fibers certified according to the Forest Stewardship Council (FSC) standards,
which is the leading independent forest certification system.It is also for this reason that
the packaging guidelines for Armani stores were drawn up in order to abolish all
lamination and the use of materials that make paper recycling difficult or impossible, to
promote the use of water-based ink and encourage exclusive cooperation with certified
suppliers.

Revenue​: US $ 2.7 Billion (2017)

(​https://www.bloomberg.com/billionaires/profiles/giorgio-armani/​)

Founders​: Giorgio Armani , Sergio Galeotti

https://www.bloomberg.com/billionaires/profiles/giorgio-armani/

Operating geography​: ​Strong brand presence with over 250 stores in over 31 countries. 
 
 
Strengths:

1. It has, over the years built a very well reputed and highly regarded brand name for itself.
2. With a chain of sub-brands under its umbrella, it offers a wide gamut of products for its
customers of different age groups and all over the world like ​women’s and men’s
 Clothing, Shoes and Bags, Watches, Eyewear, Jewellery, Fragrances and Cosmetics,
Home Furnishings etc.
3. It has a large set of loyal and premium customers
4. It has not only emerged just as a fashion and lifestyle brand but has also stood up to
fulfill its social responsibilities towards communities and the environment.
5. It has a strong global presence which makes it easier for its customers to purchase their
products in their respective geographical locations.
6. Their association with popular celebrities has helped the brand stay in the limelight.
7. It has a wide range of unique designs which are known for its permanence and not
easily deterred by the ever-changing fashion trends

Weakness:

1. It was slow to embrace social media. It still needs to create separate profiles for
some of its sub-brands on Facebook , Instagram and Twitter. In the age of social
media , a strong presence on various social media platforms is a must for
longevity and high customer recall.
2. While brands like Louis Vitton has successfully boosted revenues by pushing into
more expensive luxury goods and reducing lines of lower-priced items, Armani’s
strategy of selling in mid-markets at lower prices may have diluted its charm as a
luxury brand.
3. It caters only to a niche market of the elite class

Opportunities:

1. The momentum of digital transformations will continue to shape the luxury industry and
online sales will have the highest growth rate, therefore it is a good opportunity for
Giorgio Armani S.p.A to join the bandwagon and make a mark for itself in the online
retail arena. ​(it already has an online website na?​)
2. Shifting market trends

The fashion market is witnessing massive shifts in terms of geographical locations. Asian
market is growing at an exponential rate and looks highly promising in terms of the
fashion segment. According to a McKinsey report published in 2018, China will overtake
the US in 2019 as the most significant fashion market. India is another fragmented
 market with a vast potential for the fashion industry. Mature manufacturing segment,
growth in disposable income, increased internet penetration seem to be the driving
factors for this growth. By 2022, India is expected to have about 690 million smartphone
users, which can be leveraged to the advantage. Europe will also see active spending
patterns from the growing middle and upper middle-class sectors of its economy. Armani
has already set up its presence in Southeast Asia with its first store in Jakarta recently.
Expanding more into the parts of Greater China will provide a lucrative business for the
company.

https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/The%20
State%20of%20Fashion%202019%20A%20year%20of%20awakening/The-State-of-Fas
hion-2019-final.ashx

3. Brand name created can be used to diversify into different sectors of business one of
such initiative taken is to enter the hospitality industry.
4. Rental, Resale and refurbished market:

The recent years are seeing a tremendous shift in consumer behavior, mostly propelled
by the Millenials. The Millenials, also called the youth, are the primary consumers of the
fashion industry. What they seek in the present days is ‘variety.’ Research has revealed
that the frequency of purchase of clothing has increased to 1.6x than compared to 2004.
But, it was also observed that the consumers now use them only for about half the life
span as they previously used. Prices of clothing are on the rise year on year. So for the
consumers, to have a balanced expenditure, they are looking for options like
refurbished, second-hand retail or rental clothing. RealReal is a company valued at
around $450million, sells slightly used luxury goods at a rate of up to 10% of the original
price. Established brands like Stella McCartney have also entered the market by getting
into a partnership with RealReal to sell their clothes on a pre-owned or rental basis to the
consumers. This allows them to widen consumer awareness thereby increasing the
people getting into their stores. Many consulting firms have already predicted that the
majority of the new companies in the fashion industry will be shifting towards this
 business model. Armani should also find the right business model to enter into this,
before its too late.

Threats:

1. Brand duplication

Fake goods or imitation or duplicates are highly rampant in the fashion industry. They are
look-alikes of the original brands available at a fraction of the price of the original good. Nike
shoes, Armani watches, Micheal Kors handbags make their way into the local markets in almost
every country ranging from London to China. The global market of counterfeit goods is at a
staggering figure of $450 billion published by the OECD. These goods are a severe threat to
high-end fashion brands, thereby bringing down their sales as well as their reputation. The EU
has revealed that it's textile and footwear industry faces about $27.7 billion in revenue due to
this problem. And the sale of these counterfeit products is not just limited to the offline markets.
They have also moved online and now use e-commerce websites, facebook pages, Instagram
pages to sell their goods. In the UK itself, an investigation helped bring down about 19,000 such
fake sites by the PIPUC. In several situations, many customers fail to realize the fact that a fake
product is being sold to them. Customer awareness and a crackdown from the supply chain
side of the counterfeit goods will play a vital role in curbing them.

https://www.businessoffashion.com/articles/intelligence/fighting-the-450-billion-trade-in-fake-fas
hion

2.Competitors like FCUK, Christian Dior, Diesel, Gucci etc are entering the fashion market in a
great way.

Giorgio Armani inspite of being a long established brand in this industry, it is facing intense
competitions from new entrants. Companies like Gucci, Micheal Kors are giving Armani a tough
fight by coming up with latest products and catering to a bunch of prices ranges. The threat to
new entrants in the fashion industry is minimal compared to many other industries as any
company cannot come up with starkingly new products altogether. Investments on the
infrastructre and the marketing are detering some companies from entering the industry. Retail
stores are seeing what is called as the ‘Amazon effect’ which is providing customers with
everytihing under one roof. A shift in the markets is also being seen as the latest trend. ( should
complete this).

https://phdessay.com/armani/

Strengths:

1.Strong brand name:

It has, over the years, built a very well reputed and highly regarded brand name for itself. The
brand brings pride to the company as well as the customers equally. By maintaining strong
relationships with celebrities majorly from Hollywood, the brand has positioned itself as a class
apart. Much of the brand-building was also the work of the creator Giorgio Armani himself.
Known to be an iconic designer of the era, he was one of the initial designers who has
leveraged the power of media stars for the marketing of their brands to the maximum extent.
Giorgio Armani has been a designer of a wardrobe for top featuring actors in movies like
American Gigolo 1980, Batman (1989), and Pulp Fiction. These movies credits helped the
brand strengthen its brand image as well as market its products. It has also constantly stayed in
the limelight by being a designer for some famous TV series actors like Miami Vice in the late
1980s.

He began a long relationship with Hollywood when he designed Richard Gere's wardrobe for the 1980 film American Gigolo. A string
of other movie credits would accumulate throughout the next two decades, including Batman (1989) and Pulp Fiction (Emporio
Armani) and, appropriately, Ready to Wear (both 1994). Armani was also responsible for much of the pastel wardrobe for the stars
of Miami Vice, the hit TV series of the late 1980s.
2. Categorization based on sub-brands:

With a chain of sub-brands under its umbrella, it offers a wide gamut of products for its
customers of different age groups all over the world. It targets different sections of social status
in society with its sub-brands. But, it also is seen that all its target segments still lie in the
upper-middle class or above. Emporio Armani was launched as a brand which positioned itself
for the young and sporty people. It has also put its prices at a lower end compared to the parent
brand Giorgio Armani. Giorgio Armani is well known to be one of the high-end fashion lines in
the world. Its target segment includes the most elite people in society, including big hot-shot
celebrities. Giorgio Armani Privé was also one such brand that was introduced in the same
lines. On the demographic targeting front also we can see that Armani has done a precise
categorization with their sub-brands. It has launched Armani baby for kids and toddlers. It has
also launched Armani Collezioni to provide tailored suits and shirts with end to end
customizable clothing to its customers.

3. Active social responsibility:

It has not only emerged as a fashion and lifestyle brand but has also stood up to fulfill its social
responsibilities towards communities and the environment. Being a company that is aware of
the proper use of natural resources and its environmental impact, it has imbibed sustainability
policies in all walks of its process. With this vision, it has created initiatives that align with the
international standards of environmental sustainability. In an agreement with the Fur Free
Alliance in 2016, the brand has emphasized its vision by pledging to produce its products
completely free of animal fur. It was able to achieve this by finding alternatives with the
adaptation of the latest technological processes. Giving back to the community is what the
company thoroughly believes in and has also been one of its founding values of its Code of
Ethics. As a step in this direction, Armani has started the Armani Silos. It is a spacious 4500
square meter space located in Milan. It aims to preserve the great heritage of the lifestyle by
portraying the changing lifestyles of the people. Silos bring together several designers, artists,
stylists by conducting thematic exhibitions and cultural meetings. These activities have also
helped it to establish its brand name further.
 5. Diversified portfolio:

Over time, the company has diversified not only its product offerings but also the industries to
an extent. It offers a wide gamut of products for its customers all over the world like women’s
and men’s Clothing, Shoes and Bags, Watches, Eyewear, Jewellery, Fragrances, and
Cosmetics. It has also entered into an agreement with Emaar Hotels & Resorts to open up a
hotel for the public in Dubai, thereby taking the brand experience to a notch higher for its
customers. Armani under the label Casa, which means ‘house’ provides a wide range of
premium home furnishings. In collaboration with Rubelli and Molteni group, it has released an
exquisite range of interior collections. This decoration of Casa was also used in their Armani
hotels. It has also ventured into the confectionary business with the label Dolci by collaborating
with the Italian chocolate manufacturer Venchi in 2002. Mostly available in the Armani stores,
Dolci sells jams, honey, tea, sugar. To provide an immersive and complete brand experience,
Armani has started the Florist under its label, Fiori. The notable fact is that Giorgio Armani
himself personally designs most of the collection in this label.

https://www.armani.com/experience/us/corporate/social-responsibility/community/

Read more:
https://www.referenceforbusiness.com/history2/36/Giorgio-Armani-S-p-A.html#ixzz62TvDIqK7

Weakness:

1.Lack of strong digital presence:

In an era of strong technological transformation, ,the digital presence marks a key role
in the product marketing as well as the brand development. Today's business world
relies on technology for everything from inventory management to communicating with
customers​.​It was slow to embrace social media. Ever since social media has gained popularity
among humans, we cannot think of promoting a brand without taking the help of social media.
As social media marketing addresses the customers well and in return customers learn a lot
about their brands. An active social networking account adds value to your business. A socially
active brand makes to the top of the indust​ry.​Connecting with new clients and expressing your
thoughts become quite easy with social media.It still needs to create separate profiles for some
of its sub-brands on Facebook , Instagram and Twitter. In the age of social media , a strong
presence on various social media platforms is a must for longevity and high customer recall.

2. Niche segment market targetting:

Armani has known to target a particular set of high end upper middle class through its labels.
Inspite of releasing several sub labels, we could see that still all of them target the higher
income group level itself with little differentiations.

3. Financial structure

Giorgio Armani has been unique in terms of the financial perspective, as well. A quick financial
analysis of the company shows us that the founder, Giorgio Armani, the founder has been the
only shareholder in the company right from the day he founded the company until now. It was
also seen that the company had not procured any loans from the banks. It should also be noted
that the company witnessed extraordinary growth right from the launch of its first product line,
placing itself in the STAR segment of the BCG matrix. This has helped the company to attain a
sense of financial independence, which seemed to be a massive asset for the company as it
expanded into new territories and markets. With all these in place, the company was able to
concentrate majorly on its core business rather than worrying about the quarterly targets or
pressure from various investors. It created a single point of decision making in the system and
eased the flow to a great extent. But, this can also act in a negative way for the company. To
continue similarly in the long run as a single man entity will not be feasible in the long term. The
fashion industry has been witnessing a lot of consolidation, and soon it might reach Armani as
well. It has also been noted in many scenarios that the company does not have any successor
in the making.

https://www.ukessays.com/essays/marketing/marketing-plan-for-brand-of-giorgio-armani-market
ing-essay.php

Political
 1. Expansion into the Asia pacific market:

Giorgio Armani has recently expanded into the Asian Pacific market. This market
provides the company with a huge market size due to its heavy population. Hence, the
company is expecting a heavy growth in this area if it rightly taps into the millions of
potential customers. The estimated market size of China itself was around 12 million.
The growth of these segments are largely dependent on the political conditions of these
countries. Especially in China, it's important to look out for how the political conditions of
the country and its influence on the fashion industry. If there is no disruption, there would
not be any difficulty in meeting this demand.Armani has several stores that self sufficient
in that market. For example, in Shanghai there is a Emporio Armani store and plans for
over 30 additional stores in the area over the next few years. (Seckler 2002)

Economic

Armani's target segment always remained the elite class with high disposable income. The
economy, to some extent, has not completely recovered from the 2008 financial crises. Even
during the crises, we have seen the company face a huge hit. Extravagant and lavish spending
will be the first to cut down by the people during the time of any crisis situation. The world
currently is experiencing a slowdown in its economy. This scenario is also seen in emerging
markets like India and China, where the growth is slow-paced. The trade war between the US
and China could also be seen as one of the reasons for the slowdown in the economy. The rise
in unemployment rates is also a growing concern for many economies. Without a stable food
and house to live in, the idea of premium clothing will be far fetched. The company should
prepare itself, by diversifying to a greater extent.

We’re seeing an expansion of rentable clothing, both formal and casual. The service is
cost-effective and most of the options are fashionable, depending on the person’s tastes.
Whether you need to rent a suit, a dress, or jewelry, you can easily find shops offering
this service with a quick google search.

Social

A shift in cultural trends has shown a significant impact on the fashion industry overall. Music
has been one such factor which is influencing fashion the people wear. Music videos are acting
as a platform for the marketing of the fashion segment. This is even more profound for a
premium company like Giorgio Armani. Many music videos these days tell the brand names in
their songs. One such example is of the song “Fashion” by Lady GaGa. It is proven to attract
customers and increase the sales of the product almost instantly. Musicians and actors also
wear the fashion line clothing to many concerts and events like fashion weeks. With the
immense proliferation of social media, events like fashion weeks, film festivals are keenly
observed by a large group of people. These celebrities are acting as the trendsetters using the
events as their platforms. We all remember Michael Jackson wearing the iconic glove hand and
sagging jeans wore by Tupac and stating their style.

Music has always had a massive impact on fashion. Music videos are where musicians show off the clothes their viewers will want
to buy ASAP. It’s common to mention brands in songs. “Anaconda” by Nicki Minaj and “Fashion” sung by Lady GaGa both mention
expensive brand names in the lyrics. It’s usually just a shameless plug that fans will eat up.

You’ll also find iconic looks from musicians too. Tupac would wear sagging jeans and gold chains. M.C Hammer is known for his
massive pants while he moved from side to side on stage. And who could forget Michael Jackson’s iconic one gloved hand? The
clothes famous musicians wear can have a massive impact on the industry and fans.

On the other hand, fashion also dictates events.

Technological

1.Online marketplaces:

Technology adoption has engulfed every industry and is changing the experiences of both
consumers and producers. The fashion industry has not been left alone. With e-commerce on
the rise, customers love to enjoy the convenience of shopping from their homes. On the other
hand, it has created a platform for many budding designers and entrepreneurs to set up an
online clothing store with a click of a button. Many people have used Etsy to sell homemade
jewelry, clothes without any investment. GirlBoss Sohpia initially started selling vintage clothing
on eBay and is currently worth over $280 million. In this way, the customers are being exposed
to several diverse options. Directly or indirectly, some of them are also posing a threat to the
long-established branded fashion lines like Giorgio Armani as well. Getting clothes on rent has
also become a new trend from several online platforms. Suits, shirts and footwear are all
available for rent. Armani has recently started to increase its presence in the mobile phone
advertising where close to 40% of its interaction occur. It can strategically focus more on the
technological advancements it can incorporate in their existing e-commerce platform and stay
ahead by using Artificial Intelligence and Machine Learning.

2.Digital Influencers:

Technology is profoundly enhancing customer decision making. Digital marketing, as we all

know, is the new buzzword. But, fashion brand marketing nowadays is mostly done by fashion
influencers, bloggers than by the company themselves. Instagram, WeChat, Facebook are their
playgrounds. BeckyLi is a fashion blogger from China who has about 3 million followers on
Weibo and 4.5 million followers on WeChat. Companies are tying up with these influencers to
promote their brand forward. Some influencers are also starting their fashion lines. The
consumers have become more rational these days, rather than running behind the latest trends.
So, these influencers are acting as a helper in their decision making by increasing consumer
engagement. Another influencer named Anatasia Beverly has hills posted about 60 latest
clothing pictures a week to stay connected with their followers. Some companies are also
leveraging this by creating their brand pages and keeping their customers posted. Solid and
Striped is a US-based swimwear company that has about 3,16,000 followers on its Instagram
page. The company which makes the most of these platforms by using the influencers in the
right way will stay at the top.

https://amp.scmp.com/magazines/style/people-events/article/2144489/meet-becky-li-chinas-digit
al-influencer-who-sold-100

https://www.instagram.com/solidandstriped/?hl=en

Slow adoption rate by the industry:

Lot of new inventions have occured on the techonological front for a fashion industry. But, we
could see that many companies are very slow on the adoption rate. Giorgio Armani is also not
on par with the latest advacements.

https://pestleanalysis.com/pestle-analysis-of-the-fashion-industry/

http://money.com/money/longform/sophia-amoruso-girlboss-interview/

Legal

Worker rights conditions :

It is known that many fashion companies look for Asians to find cheap labour to manufacture
their goods. In this context it is also important for them to maintain the policies according to the
country of operation. But, many companies exploit the workers to the maximum extent possible
by providing with bare minimum working conditions. When such conditions are exposed over
social media, the consumers are seen to boycott such brands. Giorgio Armani in 2014 paid
around 270 million euros to the Italian tax authorities to settle a dispute rose by its workers . d

Environmental

1. PETA rights and fur usage

The fashion industry can play a significant role in deteriorating the environment. Even the jeans
worn by us are soaked in many hazardous chemicals. The skin of snakes and fur of several
other animals have found their way into the making of bags, shoes, and many other items in the
fashion industry. People for Ethical Treatment of Animals(PETA) has been working relentlessly
with the support of around 6.5 million members from all over the world to restrict this usage. Its
crusade against fur farming has attracted full attention from people and several celebrities. It
actively ran the campaigns of ‘I’d rather go naked than wear fur’ and ‘fur hurts’ to crack down
the usage of fur. Giorgio Armani has also pledged to stop using animal fur in 2016. State
regulations are also following the same line with California recently becoming the first state to
ban the sales of clothing, handbags, pompoms, keychains made of fur. NewYork city may join
the ban soon.

2. Waste generation and waste disposal:

One major problem the fashion industry has been suffering from its inception is the waste
by-products that are generated from the manufacturing processes, which leave a harmful strain
on the environment. It is surprising to know that the fashion industry alone is responsible for
being a producer of about 20% of wastewater globally. A typical pair of jeans takes about 2000
gallons of water to make it. In a time where the world is looking at a water crisis by 2030, this is
highly unacceptable. The other major problem is the sustainable disposal of clothes. For every
second about a truck-sized load of clothes is disposed of through landfills. To tackle these
issues, companies and several organizations are pushing towards environmental sustainability
in their products as well as processes. The United Nations has already started UN Alliance on
Sustainable Fashion and is also pushing towards the implementation of an SDG. Companies
are also coming up with innovative product offerings. A company from Amsterdam named
GumDrop has collected chewing gum from the public and used to turn into rubber for
manufacturing shoes. Patagonia, a company that specializes in producing fleece jackets, has
shifted to recycled bottles for its manufacturing process.

https://www.unenvironment.org/news-and-stories/story/putting-brakes-fast-fashion

3.
4. OPPORTUNITIES​:
1. INCREASING GLOBAL INCOME:​Global wealth has growth by 66% from 2014 to
2018. Also, in the past twenty years, more than two dozen low income countries have
moved from low income status to middle income status. These are the countries which
are dominated by natural capital. This gives a huge opportunity for Armani to expand its
stores into these countries since the purchasing power of the population has increased
 and hence the proportion of the population can now afford luxury products. Also, the
expenditure on the clothing by an average individual has increased about 1.7x times
compared to about 10 years back reported by a McKinsey study. Giorgio Armani can
increase presence into these latest countries from the present 31 countries. We have
also seen a rise in many countries opening up their economies for new industry players.
India has also eased many norms for the foregin industries to set up their presence in
the country. It is important to venture into these countries and make use of opportunities
to get a first mover advantage.
5. 2. SMART MATERIALS
UN has released SDGs (Sustainable Development Goals) in association with the Paris
Climate Agreement for luxury goods. With this, the forecasted impact of the sustainability
in luxury products is going to play a key role in the next ten years. For the same,
venturing into smart materials will play a vital role going forward. Products like polymers
that are biodegradable can be used for the same. Apart from providing the functional
benefit that the usual apparels provide, it also provides additional benefits like energy
efficiency and the cost of the material is low. Added to this, it is also easier to scale this
material. Due to the shift in technology trends, customer expectations are also likely to
change in the next 10 years in terms of what functional benefit can be for apparel.
Materials like carbon fibre offer functional benefits like controlling the temperature and
USB charging. Added to these benefits, they are also economical, safe and offer a
health benefit.
6. WEAKNESS​:
1. HIGH CONCENTRATION ​( You can use this in opportunity or anywhere if you want,
waste enduku ani)
Due to evolution of technology and changing environment forces, new business models
are evolving and are disrupting the existing environment. Also, due to high level of
penetration in the target markets, there is aggressive competition across the distribution
channels. Due to this, it is important to increase the product portfolio and expand into
new markets. However, there are three regions, Africa, Latin America and Middle East,
where the top 5 players do not exceed more than 40% of the concentration, this could be
areas of expansion.

1.Lack of strong digital presence:

With the advent of internet and technology, new channels of commerce like digital
commerce and mobile commerce have emerged. While mobile commerce has witnessed
a whopping 270% growth over a five year period, that is from 2013 to 2018 and digital
commerce has witnessed a 59% growth over the same period, store based physical
 retail stores have grown only by 3%. According to a report, m-commerce is likely to
witness a huge penetration over the next ten years and it is estimated that 76% of the
population in the world would be having access to the internet. Also, global online sales
for personal luxury products accounted for 11% of the total sales. Adding to that, this
share has increased threefold from 2008 to 2018. It is expected to increase by 200%
over the next five years. Giorgio Armani still needs to create separate profiles for some
of its sub-brands on Facebook, Instagram and Twitter. A mobile application also needs
to be created in order to cater to the needs of the customers.
7.
8.

https://www.nytimes.com/2019/10/14/style/fur-ban-california.html

9.