Giorgio Armani streamlines range seeking competitive edge
More clarity and synergy, less dispersion. This is how Giorgio Armani has revised its strategy, streamlining its range to adapt to an increasingly complex and competitive market.
In a brief press release, the Italian luxury label has announced the restructuring of its brand portfolio. From the Spring/Summer 2018 season, its range will be condensed into three brands as opposed to the current five: the main line, Giorgio Armani, the second line, Emporio Armani, and the fast-fashion, young urban line A/X Armani Exchange.
The luxury, ultra classic line Armani Collezioni and the casual, directional Armani Jeans line, created in 1981, will both merge with Emporio Armani, as demonstrated by the new Emporio Armani collection which showed in Milan on Friday, blending super sporty outfits with more formal ones and with others featuring decidedly urban silhouettes.
The group stated in the press release that this strategic overhaul is motivated by "rationalisation and distribution" purposes. In the last few decades the Armani world has spawned an abundant array of stores worldwide. In 2015, the label operated 338 Emporio Armani stores, 754 Armani Collezioni ones and 880 AJ|Armani Jeans ones across the world. Does Armani now wish to close down some of them?
The group has not yet published its 2016 results, and in 2015 it reported a revenue of €2.65 billion, equivalent to a 4.5% increase, a slower growth rate compared to previous years. In 2016 Giorgio Armani's revenue is however expected to fall by 5%, and 2017 too is heralded as another "troubled" year, according to a statement made by the couturier last January.
After the show, Giorgio Armani was nevertheless optimistic, underlining how the forthcoming changes are "nothing traumatic," being simply a matter of offering a better response to the market's and women's requirements. "The Emporio name will be an umbrella for various concepts, a one-stop concentrate of ideas, designed to appeal to a broad audience by offering a range of styles and moods," he said.
The group's redefined range will continue to feature also the Armani/Casa interior design line and the Armani Privé haute couture collection.
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