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Giordano: Positioning for International Expansion

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Tina Le

on 4 May 2014

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Transcript of Giordano: Positioning for International Expansion

Giordano: Positioning for International

Natalia 99542865
Tina 99490223
John 99490401
Teresa 99490205
Jonas 99490020
Junya 99490170

Giordano's Background
Product positioning
Competitive advantages and key success factors

Company's Background
A Hong Kong-based retailer of casual clothes target at men, women, and children.
1,800 retail stores in 30 different markets.
Main markets: China, Hong Kong, Japan, Singapore, Korea, Taiwan.
Storefronts with great foot traffic.
Retail clothing extremely competitive.
Sales had grown to US$561 million by 2007

Found in Hong Kong by Jimmy Lai

First store in Hong Kong and distributed merchandise to Taiwan through a join venture.


First retail outlet in Singapore.
Change from only men to unisex casuals.

Sales and turnover increased and new chairman is announced.

Strategies for Giordano
Product strategy
A retailer of unisex and casual apparel
Customer service as part of products
The concept of value-for-money
Product adaptations in order to meet customer expectations
Limiting the firm’s expansion and focusing on one specific area (No more than 100 variants of 17 core items) to maintain flexibility and speed and to keep the costs down

Business strategy
Differentiation strategy: quality of the products and the service offered to customers
Focus on customer responsiveness, value- quality, trend apparel , at affordable price
New product lines: “ Giordano Ladies”, mid-priced women’s fashion.
In 2008, “ Giordano Ladies” focused on a select segment, the “ office ladies, but dressier” market as one of its core offerings.

Corporate strategy
Vertical integration – manufacturing units in Mainland China and Philippines, allowing better cost and quality control
Competition amongst suppliers of good quality apparel became intense => prices came down dramatically, an opportunity cost to rely on Giordano’s own manufacturing division for supplies.
In 1999, the Philippine factory was closed down.
Investing at opening new retail outlets in different parts of the world.

Product positioning

Positioning of Giordano is value for money and mid-priced but trendy fashion.”

Inexpensive yet contemporary and trendy” Repositioning?!
Competitive advantages and key success factors
In the value-for-money segment: Hang Ten, Bossini, Baleno, Espirit
In the relative positioning: The Gap, Bossini, Hang Ten, Baleno and Espirit

Key Success
Excellence in Organizational

Fast-changing consumer tastes and fashion trends
Flat organizational structure
Excellent organizational communication
Giordano's knew the customer's needs and served them well.

Excellence in Inventory Control

Advanced IT that skillfully manages inventory and forecasts demand allowed for lower prices and larger margins.
Value for money merchandise through careful selection of suppliers, strict cost control, and resisting temptations to increase retail prices unnecessarily.

Strong positioning.
“Value-for-money” policy.
Aggressive and unique advertising and promotion were truly successful and beneficial.

Excellence in Service

Giordano Means Service
Service orientation:
- Human resource policies
- Information systems
- Performance monitoring

Excellence in Marketing
and Branding
Group list
Competitive Advantages
A tightly
controlled menu
Value pricing
Full transcript