Fashion designer Giorgio Armani is taking direct charge of his sales business in great britan to improve efficiency in the retail sector, that has become a revenue-spinner for luxury makers amid economic turmoil.
Armani Gains Direct Control of UK Sales Business
Armani said inside a statement on he had decided to take control of his UK wholesale and retail business from long-term retail partner Club 21 after 23 many years of cooperation.
The 1.8-billion-euro Armani empire is one kind of top luxury makers which have moved to manage their businesses internally, reducing costs in the long run and boosting profitability.
Singapore-based Club 21, which manages brands for example Donna Karan, Balenciaga, Dolce & Gabbana and Paul Smith, will retain distribution from the smaller Armani Exchange sporty line.
“It has become time that a global brand like Armani runs its very own interests in a market as crucial as this one,” the designer said, ushering inside a “new era” for his business in great britan.
Luxottica, the world’s biggest maker of designer sunglasses for brands including Giorgio Armani, would be to spend more than 200 million euros over 3 years to increase production and cut delivery times to maintain fast-moving fashion trends.
From Prada to Salvatore Ferragamo, top luxury makers have invested heavily within the opening of their own stores, where they’ve direct control of their sales forces and brand image. Stores really are a cash cow for brands if managed well.
The unlisted Armani empire reported a 13.6 % rise in revenues last year, helped with a 45 percent boost in China, the fastest-growing retail market.
The hands-on designer, that has repeatedly said he has no intention to market his business, said recently he aimed to grow further this season despite concerns about the euro zone crisis.
The Armani group has six clothing lines, such as the top Giorgio Armani collections. It also makes sunglasses, fragrances and make-up.
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