Mr Armani speaks about Bulgari’s new ownership and the posibility to create a luxury Italian pole
In an interview to Italian media referring to Bulgari’s new ownership, Santo Versace, Chairman of Altagamma, the association of Italian luxury brands, said that Giorgio Armani is the last major Italian brand which can create a pole of Italian luxury brands, thus protecting not only ”Made in Italy” but also Italian luxury brands remaining in Italian ownership.
Mr Giorgio Armani said in a recent interview that he still has a lot to do within his own group before considering creating such a pole. Asked what he thought of the recent sale of Bulgari to LVMH, Mr Armani said he felt sad and at the same time warned that large luxury conglomerates such as LVMH, despite their large ”collection” of brands, continue to make money on one or two major brands, which, in many cases hardly surpass the turnovers of independent brands such as Prada, Hermes, Armani or Ralph Lauren.
Giorgio Armani Group has had a positive performance in 2010, reaching a turnover of 2,2 billion euros. Yet, Mr Armani advises that it is not necessarily size which matters when dealing with major competitors in luxury, but rather a coherent strategy and honesty towards consumers which have a defining long term effect.
Asked why Italian companies did not create luxury groups such as LVMH and PPR (Gucci Group), Mr Armani said that most of the large Italian brands have been focusing, otherwise, rightfully, on their own development, rather than forming groups. He also added that his company has been undergong major changes in management and operations, to ensure optimal functioning even after he will be gone.