Armani joins China luxury influx, plans 20-30 stores

Giorgio Armani, the latest fashion house with dreams of dressing the growing ranks of wealthy Chinese, said on Wednesday it will open 20 to ...

Giorgio Armani, the latest fashion house with dreams of dressing the growing ranks of wealthy Chinese, said on Wednesday it will open 20 to 30 stores on the mainland within three to five years.

The Italian designer will also open the second largest outlet in its 259 store empire in Hong Kong on Halloween as part of a multi-million-dollar expansion in Greater China. High-end retailers have flocked to China in recent years as the country’s growing ranks of young entrepreneurs develop tastes for expensive brands.

Robert Triefus, corporate vice-president, 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.

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‘‘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.

Luxury goods makers such as Hermes, Moet Hennesy-LouisVuitton and Gucci have all established beachheads in China, where sleek European-style boutique are increasingly common in the shopping districts of wealthier eastern cities. Armani already has two outlets in China, one in Beijing, the other in Shenzhen, the boomtown across the Hong Kong border. Giorgio Armani himself will scout for store locations in Shanghai when he makes his first visit to China next month. Shenyang, Dalian, Guangzhou, Wuhan, Chongqing, Chengdu are other mainland cities the firm is eyeing for store sites. Other than its flagship shop in Beijing, Armani’s mainland stores will be operated with franchise partners.

Milan-based Armani sells some of the world’s most exclusive apparel, with items that can cost thousands of US dollars.

China’s per capita disposable income for urban residents averaged just 657 yuan ($79) a month during the first half, although that was an increase of 17.3 per cent from a year ago. Unlisted Armani posted an 11 per cent year-on-year rise in first half core earnings, or earnings before interest, taxes, depreciation and amortisation, to $125.4 million on Tuesday.