Armani Continues To Bullish The Chinese Market

　　 Italy Luxury group Giorgio Armani's sales fell 6% to 1 billion 500 million euros last year. In China, it rose by 32%, unchanged from previous years. Net operating income fell sharply by 28% to 218 million euros, mainly affected by the recession in the US and Japan. Nevertheless, Armani still maintains strong financial capacity.

The company's net cash receipts and payments rose by 20% to 447 million euros, which is due to prudent management and prudent investment. Though face Economic crisis The luxury brand continued to expand its stores, reaching 182 stores last year, so that the company has 1503 stores.

　　 Armani Giorgio Armani, chairman and chief executive, believes that the company will focus on developing core products and markets, so that we can grasp the opportunities for global market recovery. The situation in the first few months of 2010 has shown good momentum. At the same time, the company will continue to develop core markets, such as the United States, Europe and Japan. Despite the slumping of the Japanese market last year, Armani opened a new store in Tokyo in the spring of 2009. The company believes there is still a chance to improve the Japanese market and expect to occupy more market share.

The biggest drop in the company's business is wholesale sales, which account for 60% of sales. Retail sales are basically flat. Especially in the US Department stores, the two digit decline has caused the brand to face a sharp decline. But the department stores in the United States are slowly improving.

Last year, the company opened 182 stores, 72 of which were run independently. It is also worth mentioning that last year, the company opened its flagship store in Fifth Avenue.

The company will pay more attention to the Chinese market in the future. Besides big cities like Beijing and Shanghai, the company will also develop second third line cities. In 2008, the company opened 66 stores in China, and 5 stores were ready to open. The company believes that China still has great room for development, waiting for further excavation.

In addition, the company will also open up the tourism consumer market. In 2009, it opened a tourist boutique at Hong Kong International Airport, French Charles De Gaulle Airport and Austria airport. It is reported that the company also has plans to open such stores in the US airports.

Company executives believe that if we want to overcome the difficulties, we need to further subdivide our products, and the company will reposition its Collezioni and Cowboy brand. It is easier for them to be accepted by the mass market and to be recognized by department stores. But in terms of corporate strategy, there will be no big change.