Armani is a famous clothing brand. It is based in Milan, Italy. As a flagship chain store, Armani was founded in 1975 by Giorgio Armani. It is one of the world’s largest selling clothing brands. This fashion group is also the owner of brands like Armani Exchange, Giorgio Armani, Emporio Armani, Armani Collezioni, Armani Exchange, Armani Junior, Armani/Casa. Armani/Dolci, Armani/Fiori, Armani/Hotels.
The company manages many clothing collections a year. The brand has also diversified itself by investing in the hospitality sector like a chain of hotels in collaboration with Emaar Properties. It also operates a chain of many luxury hotels, resorts, and cafes worldwide. It offers quality products that are second to none. The company has to lead the apparel world through its brand reputation and customer-centric approach.
This article will discuss the historical evolution of the brand, its marketing strategy, and points on which the brand has an edge over its competitors. The article will also discuss stats and facts about the company and, much more.
BACKGROUND OF ARMANI
Giorgio Armani inaugurated the brand in 1975. He got formal training in fashion design and, formally came up with ready-to-wear clothing in 1975. Without any surprise, he had to face criticism by his competitors for this idea but, the 1980s era proved them wrong. Through his unique and customer-friendly ideas, It soon started making new customers and goodwill for the company. Over the years, Armani continued to add quality and modern products to its name. It came up with perfumes, accessories, a jeans line, the lower-priced diffusion line Emporio Armani, sportswear, and a limited-edition line of handmade couture dresses.
Armani got a feather in his cap when he was appointed at the United Nations as a goodwill ambassador for Refugees. He designed uniforms for the Italian-flag bearers in the 2006 winter Olympics and many professional teams like the Chelsea football club in 2007. The brand launched many successful campaigns with tech giants like Samsung and Microsoft Corporation in the same decade. The company continued to diversify itself from European markets to global markets through its clothing as well as many luxury products.
CURRENT BRAND IDENTITY OF ARMANI BRAND
Armani has not only made its name for offering quality clothing products to its customers but, it is also now the leader in offering luxury lifestyle products like hotels and, much more. The company has expanded itself to hotels and restaurants in addition to quality clothing products. The brand offers clothing for both men and women. The brand also offers many personal accessories like quality watches, handbags, accessories, etc for its customers. It also offers many beauty products for its female customers that are recognized globally.
With many sub-brands designed under the parent brand of Giorgio Armani to target the specific needs of different market segments, the brand has become one of the strongest fashion and luxury brands in the world.
BUSINESS DISTRIBUTION & OPERATING MODEL OF ARMANI BRAND
The business model of the brand revolves around offering quality products to its customers. The brand is built on 3 pillars: class, quality, and exclusivity. Its product lines cover all corners of fashion, including apparel, swimwear, accessories, perfume, cosmetics, watches, eyewear, bags, and shoes for men, women, and kids.
SWOT ANALYSIS OF ARMANI
The business model of the company also considers SWOT i.e;
- It is high value and top-ranked brand of the fashion industry.
- Products offered by the company justify the goodwill the company has built over the years.
- The brand values its customers by offering them quality and new products with current fashion trends.
Since products are expensive, the company might be losing customers to its competitors and requires a segmentation strategy to overcome this issue.
The brand can penetrate many developing economies of the Asian market and can use its brand name to step into the hospitality sector in addition to clothing products.
Entry barriers like local laws and similar products by competitors especially in clothing at lower rates are some of the threats company must consider moving forward.
MARKETING STRATEGY OF ARMANI
Since it is offering its products at a higher price, the brand can invest heavily(STAR) in different markets. Apart from clothing accessories, the brand has now been involved in the hospitality sector. When it comes to price, the brand offers products that are relatively high as compared to its competitors. The company justifies this point by stating that it is making products for customers who are fashion savvy. The company uses a chain of distributors, suppliers, and customers for offering its products. It has stores in many big and famous malls in the world in around 46 countries. The company uses visual merchandising, sales promotion, and public relations for offering its products to its customers.
ADVERTISING CAMPAIGNS OF THE BRAND
Since start. Armani has been involved in using almost every possible means for promoting its products. From traditional newspapers to modern means of digital marketing, the brand has been investing heavily in its marketing campaigns. It has used public relations, direct selling, social media, etc, for promoting its products. Celebrities like David & Victoria Beckham, Tom Cruise have featured in the promotion campaigns run by the company.
One important point to bear in mind is that the branding and marketing strategy of the brand revolves around offering consistency. Many people term marketing campaigns of the company evolving around egoism but, at the end of the day, success story has been impressive of these campaigns.
Companies around the world carry out intensive marketing analysis and planning to position their brand in a strong manner. These analysis consider the aspects of product, price, place, and promotion also called marketing mix or 4 P’s of marketing.
The group is operating under different brand names that allow the company to diversify itself and address the various needs of the customer. These include
The price of the different products of the brand is expensive as most of its customers come from high income level groups.
The brand has a presence in more than 46 countries of the world. It is also using online means to reach a wide range of customers with various needs and segmented into different income level groups. The group is offering its products through different subsidiaries in 46 countries and having 500 exclusive retail stores.
To address the issue of strict competition, the group has run various marketing campaigns that are aiming to poisition the brand into the market with distinct features. The company has used digital marketing strategy in the last couple of years to reach a wide range of customers and build its goodwill in a strong manner. The use of different social media campaigns and celebrities for its promotional campaigns has helped the brand to lead the market. Some sources of its promotional campaigns include:
The companies operating under group’s identity have used celbrities for their promotion campaigns that include:
FACTS & FIGURES
Founder: Giorgio Armani
Brand worth: US 3.3 billion Dollars
Total number of locations: More than 3000
Headquarters: Milan, Italy
WHAT MAKES ARMANI BRAND SO SUCCESSFUL?
Variety is the key. Armani has addressed this issue by coming up with different trends and fashions in its products. Its reaction to changing fashion trends is impressive. The brand has also been trying to offer simplicity and consistency in its strategies. It has been competing with its competitors by using modern means of offering its products to its customers and, has diversified itself in new markets by offering new and quality products like apparel, watches, handbags, etc.
At present, the business of this brand has spread globally. The brand considers seasons, changing trends, varied nature of customers, and different age groups for targeting its products. It also has various chains of hotels spread across cities like Milan, Paris, New York, London, Hong Kong, Los Angeles, Tokyo, Shanghai, Seoul, Dubai, etc. Armani is no doubt the most loving and admired brand of the world and people love to use different products of this brand.