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Simply Armani

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by

Lilly Liu

on 9 July 2014

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Transcript of Simply Armani

Simply Armani
Overview
The Namesake
The Company
The Collections
Giorgio Armani
Armani Collezioni
Armani Junior
Emporio Armani
Armani Jeans
Armani Exchange
Armani Beauty
Armani Casa
EA7
Armani Privé
The Business Model
The Global Value Chain
Timeline of Collection Production
September
Armani design team research in NY, Milan, Paris, Hong Kong
Initial selection of pieces made
Sample development
October
Final selection made by Armani himself
Small-scale production
November
Collection displayed in Milan, NY, and Hong Kong showrooms
December
Sales campaign
Buyers preview collection and place initial orders
Timeline of Collection Production
Design
Based at Armani HQ in Milan
20+ designers
Approx 160 bags and 250 wallets and belts per season
Armani brand's identity of classic simplicity
Components
Assembly
Riviera del Brenta
Distribution and Retail
The Appeal of Armani
The Future of Arman
The Brand After Giorgio Armani
"As long as I'm here, I'm the boss."
- G. Armani in WSJ interview


Possible Plans of Succession
"I Fedeli" --> Silvana and Roberta Armani (nieces),
Andrea Camerana (nephew), Pantaleo Dell'Orco

Foundation similar to Rolex's Hans Wilsdorf

Sellout to large fashion corporation like LVMH
Influence of Asian Markets
“Entering into Armani’s world is like landing into the peaceful eye of a typhoon, into the perfect calm, into a style that cannot be shaken by the winds of sensationalism. An Armani dress doesn’t give you doubt or uncertainty. It’s an Armani and that’s all you need.”

- Sophia Loren
A Global Value Chain Analysis of Italy’s Prestigious Fashion Brand
Marco Genovese
Lilly Liu
Chiara Morgani
Shoko Tanaka
History and Brand Development
Special thanks to Cesare Luzzana and his team at Giorgio Armani Operations for their assistance with this project.
Founded in 1975
Clothing, jewelry, eyewear, cosmetics, fragrances, home furnishings
Revenue: €1.8 billion
500 stores, 13 factories, and 5,500 employees in 46 countries
January
Orders gathered and invoices sent to suppliers
February - April
Primary production period
Late April/Early May
Delivery to warehouse
May
Buyers ship goods to stores
Mid-June
Fall/Winter line hits shelves worldwide
A Quick Look
Metal Accessories
Made of aluminum, brass, and zamak
GAO buys directly from supplier and sells to artisans OR
GAO negotiates price and has artisans buy from specified supplier
Leather
GAO in direct contact with tanneries --> orders placed one year in advance
Exotic skins imported from around the world
Manually inspected for quality
Ostrich Leather
(Zimbabwe)
Python Leather
(Indonesia)
Lizard Leather
(Sudan)
Alligator Leather
(Australia, USA)
Suppliers
40 artisans
5-6 subcontractors
multiple clients --> broad range of techniques
capability
- crucial in sample development
- determines production capacity
contract-bound
GAO oversight during production with
weekly progress reports
sections have more control over individual functions
increased efficiency
Attraction
richness of geographical location
proximity to other districts specializing in complementary sectors
impossibility of extracting/exploiting technical knowledge from where it was born
Production
95% women's shoes
5% men's shoes
Villa Pisani
Hong Kong
Paris
Milan
London
Tokyo
Growth in Asia cushioned Armani's revenues during European crises
1/3 Armani clientele is Asian
Some collections tailored to target Asian consumers
I love things that age well: things that don't date,
that stand the test of time,
and that become
living examples of
the absolute best.
- GIORGIO ARMANI
Full transcript