2. KEY FACTS Industry: Retail Founded: Hong Kong, 1981. Founder: Jimmy Lai Headquarters:Hongkong Chairman & CEO: Peter Lau Products: Apparel Revenue: HK$ 4.95 billion (2007) [ Net income HK$ 2.36 billion (2007) Employees~ 11,000 (2007) Subsidiaries Giordano Concepts Giordano Junior Giordano Ladies Website: http://www.giordano.com.hk
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5. “ We are committed to provide our customers with value for-money merchandise, professional customer service and comfortable shopping experience at convenient locations.”
6. II. Time Context The problem of this case focuses on the future of Giordano, year 2000 and onwards.
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9. V. Areas of Consideration (SWOT Analysis) Strength Weaknesses Opportunities Threats Giordano has an excellent pool of service staff that delivers an unparalleled good customer assistance service. Lack of strong brandmark or icon. Asians are one of the best target customers for they not too classy in their types of clothes compared to Europeans. Giordano faces a tough competition with other low-priced apparel. Giordano has an excellent inventory control and computerization. They had no contingency plans regarding unforeseen circumstances for their inventory control center. They can have a relatively large sales for their products. Piracy of apparels and trademarks. Giordano has a good positioning of more-for-less (value-for-money) strategy supported by strict cost control procedures. The company lack the flexibility that some of its competitors possess. (Product development) Further expansion into overseas markets. Europe and Africa also have a high potentials and growing markets. The same marketing strategies with other competitors. Giordano has an aggressive advertising and promotions strategy. Prices of products are higher compared to other competitors like Hang Ten, Bossini and Baleno. Growing demand for casual wears. Changing demographics of customers who have changing needs based on their culture and habits.
10. V. Areas of Consideration (SWOT Analysis) Strength Weaknesses Opportunities Threats Giordano has an excellent pool of service staff that delivers an unparalleled good customer assistance service. Lack of strong brandmark or icon. Asians are one of the best target customers for they not too classy in their types of clothes compared to Europeans. Giordano faces a tough competition with other low-priced apparel. Giordano has an excellent inventory control and computerization. They had no contingency plans regarding unforeseen circumstances for their inventory control center. They can have a relatively large sales for their products. Piracy of apparels and trademarks. Giordano has a good positioning of more-for-less (value-for-money) strategy supported by strict cost control procedures. The company lack the flexibility that some of its competitors possess. (Product development) Further expansion into overseas markets. Europe and Africa also have a high potentials and growing markets. The same marketing strategies with other competitors. Giordano has an aggressive advertising and promotions strategy. Prices of products are higher compared to other competitors like Hang Ten, Bossini and Baleno. Growing demand for casual wears. Changing demographics of customers who have changing needs based on their culture and habits.
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14. VIII. Action Plans Marketing/Sales Department Human Resources Department Accounting Department Information Technology Department Top Management Tie-up with fashion magazines. Be alert with different marketing offers of the competitor. Continue to hire and train high-caliber service staff for the company. Report all sources of major costs and expenses of the company as well as some recommendations to resolve it. Create an interactive website for the consumers. Seek advice from marketing experts, business analysts and other professionals. Initiate a survey to the customers to determine their current trends and fashions. The company must train service staff in doing personalized service like calling regular guests by their names, noting down preferences. Gather information about the customer’s taste and preferences in fashion. Maintain a good company image. Embark a more aggressive promotion to upper-class clientele by joining Fashion Week. Train the service staff in providing a more relaxed environment in the stores. Come up with a fan page in social networks. Build a strong Corporate Social Responsibility. Maintain an excellent level of customer service at all times. Encourage service staff to engage in a informal conversation with the guests about fashion offered by the brand. Procure a personalized software where clients information can be stored and accessed anytime by the staff.
