Giordano was founded in 198 1 and listed in Hong Kong in June. Giordano International Limited is a holding company. 1In August, 1992, Giordano entered the mainland market, creating a precedent for leisure clothing retail chain stores in China. Now, Giordano has established a huge operation network in China, with more than 1000 outlets, and the store network is still growing rapidly.
Extended information Wall Street Journal: Giordano's enlightenment
Atiff Gill, an analyst at Kurt Salmon, said that companies entering the retail industry in China for the first time should learn a lesson from Giordano: ensure a strong local purchasing network and establish good relations with manufacturers.
Giordano's profit growth is closely related to high gross profit margin, which is the advantage of producing clothes in China. Gross profit refers to the difference between retail price and production cost. Giordano's gross profit margin in 2004 was 50.8%, while the market average was 40% to 42%, which was closely related to the fact that 80% of the company's clothing was produced in China.
Giordano also launched different brands for various middle-class consumers in China, similar to Gap's strategy in the United States. Giordano Ladies, owned by Giordano, is aimed at wealthy white-collar women in big cities such as Shanghai and Beijing, while BlueStar Exchange is aimed at price-sensitive consumers.
The interim results in the first half of 2005 show that the income growth rates of Giordano women's wear and Lanxinghui are 65,438+03.5% and 65,438+02.5% respectively, which exceeds the growth rate of Giordano's core brand of 65,438+02.2%. The total revenue of Giordano women's wear and Lanxinghui brand accounts for less than 65,438+05% of the group's revenue.
Giordano now has stores all over China, and the company plans to shift its development focus to the high-end clothing field. William Yue, head of investor relations, said, "The company plans to add only 30 stores this year. The company is now focusing on improving profitability, rather than just pursuing an increase in the number of stores, because Giordano "will gradually focus on the high-end market, so we will not be entangled in the competition in the low-end market. "
Baidu Encyclopedia-Giordano