Armani joins China brand invasion

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Giorgio Armani, the latest fashion company to announce serious plans for the Chinese market, said this week it will open 20 to 30 stores in the country within three to five years

The company also plans a new Hong Kong flagship store opening next month. Armani already has two outlets in China, one in Beijing and one in Shenzhen.

Armani corporate vice president Robert Triefus said "a clear entrepreneurial streak" in the population of China make for an attractive customer base. He also said that Armani can learn from the experience of its predecessors into China.

"We obviously believe that we have a brand that is recognised globally, and therefore we have the capacity to go into a new market like China, and have at least some base of presence in terms of knowledge and perception," he said.

Other than its Beijing flagship store Armani said its mainland stores will be operated with franchise partners. Giorgio Armani himself will view store locations in Shanghai when he makes his first visit to China in October.

Luxury groups such as Hermes, LVMH and Gucci have all been establishing their first wholly-owned retail businesses in China. Louis Vuitton recently confirmed it will open its first global concept store in China (TRW 05/08/02) after ten years of operating in the country. Dunhill, Versace, Salvatore Ferragamo and Montblanc have all announced expansion plans in key cities. Over the next three years Cartier plans to open a further nine outlets. Former Armani franchise holder, the Hong-Kong based Joyce Boutique Holdings is opening stores for Missoni and Dolce & Gabbana in addition to its own Joyce Boutique.

Increasingly Guangzhou, Xi'an, Shenyang, Dalian, Guangzhou, Wuhan, Chongqing, Chengdu are other booming regional cities are being sought after for suitable hotel and other upmarket retail locations.

• See Travel Retailer International October issue for an overview of the luxury goods industry and its global evolution.