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Giordano International SWOT & PESTLE Analysis

ID : 52481153| Nov 2018| 15 pages

COMPANY PROFILE -Giordano International

Business Sector :Fashion Apparel and Accessories

Operating Geography :Asia Pacific and Middle East

About Giordano International :

Founded in 1981, Giordano international is a Hong Kong based investment holding company. Worldwide, it engages in retail and distribution of men, women, and children fashion apparel and accessories. It operates through two segments i.e., ‘Retail and distribution’ and ‘Wholesale sales to overseas franchisees’. Through a network of 2,414 stores (1,268 standalone stores) as of January 2018, Giordano International offers high quality value for money apparels. Majority of its stores are in Greater China, South Korea, Southeast Asia and the Middle East.

Giordano International Revenue :


HK$5,412 million (FY ended Dec 31st 2017) (year-on-growth of 5.18%)
HK$5,145 million (FY ended Dec 31st 2016)

Competitive Analysis of Giordano International

SWOT
PESTLE
The SWOT analysis of Giordano International is presented below:
Strengths
Weaknesses
1. Strong brand image in Asia Pacific and China region
2. Portfolio of brands catering to a wide section
3. Quality customer service
4. Continuous innovation in products and systems
1. Limited product range
2. Slow response to changing consumer trends
Opportunities
Threats
1. Growth opportunities in e-commerce platform
2. US trade restrictions and protectionism
3. Increasing market demand of clothing
1. Competition from new entrants and existing market players
2. Unfamiliar regional politics and worldwide government policies
3. Depreciation of Renminbi against the Hong Kong Dollar
4. Threat from imitation products in markets such as HK, China and Middle East
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Detailed SWOT Analysis of Giordano International

 

Strength

1. Strong brand image in Asia-Pacific and China region: Giordano has built emotional ties with its customers and continuously strives to provide exceptional shopping experience to its customers. It has a global exchange policy. Its loyalty program, World without strangers, has received great success over the years. Such initiatives have strengthened Giordano’s image of providing exceptional value to its customer at a reasonable price; which is evident from its growing sales over the years. Giordano is one of the top five clothing retailers in the whole Arab region. Its online sales improved by 22.1% in mainland China (2017). And now it’s looking to expand into India through strategic partnerships with Flipkart and with Brandzstorm India Marketing (for apparel, footwear & accessories). Giordano’s image and global presence coupled with strategic partnerships with companies which have received considerable success in the local market (Flipkart and Brandzstorm India), shows good scope for its business.

2. Portfolio of brands catering to a wide section: Giordano international through its wide range of brands cater to different segment wears such as formal and casual clothes for men and women. It has also ventured into the kids segment and is focussed to provide value for money merchandise. As a result it is priced slightly lower than competitors. A well-known brand offering a wide range of good quality clothes at an affordable price act as a strength for Giordano as it helps it serve a wider audience thus enabling the business to take benefits of economies of scale in manufacturing.

3. Quality customer service: Giordano’s efforts to provide excellent customer service have been recognised by a long list of service awards that it has received over the years such as “2017 service & courtesy award”. It has received such awards consistently over the years. Giordano’s commitment towards exceptional service is evident from ‘Giordano means service’ campaign which was first launched in 1989. Since then, providing quality customer service has become one the tenets of Giordano. Also to ensure quality service to its customers, Giordano has linked performance appraisal to service quality provided by employees and frontline staff (service quality is evaluated through mystery shoppers).Giordano also spends a lot on training its employees. Quality service is one of the major strengths of Giordano has it helps ensure customer loyalty through exception customer experience.

4. Continuous innovation in products and systems: Throughout its lifecycle, Giordano International has been a pioneer in innovation of its products and systems, inventory management, in house developed systems, etc. One such example is of its real time retain system, which links all its stores globally. The system is developed in house and is totally customised to ensure that the brand has the information required for its sales, costs and other relevant functions, thus enabling it to take informed decisions on inventory management, customer profiles and requirements.

Weakness

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Opportunity

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Threat

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Major Competitors :

  • Bossini
  • Hang Ten
  • Gap
  • Espirit

Major Brands :

  • Giordano
  • Giordano Junior
  • Giordano Ladies
  • Giordano Women
  • BSX
  • Beau Monde
  • Eula
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Giordano International Analysis Report

1. Pollution’s Effect on Retail- http://maosuit.com/tech/e-commerce/pollutions-effect-on-retail/

2. Environment Costs of Fast Fashion-https://www.independent.co.uk/life-style/fashion/environment-costs-fast-fashion-pollution-waste-sustainability-a8139386.html

3. Chinese Wages Rise-https://www.cnbc.com/2017/02/27/chinese-wages-rise-made-in-china-isnt-so-cheap-anymore.html

4. Flipkart Plans To Open Offline Stores-https://inc42.com/buzz/flipkart-foreign-brands-offline-stores-ecommerce

Copyrights and Disclaimer

Giordano International SWOT and PESTLE analysis has been conducted by Vaneet Verma and reviewed by senior analysts from Barakaat Consulting.

Copyright of Giordano International SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

Giordano International SWOT & PESTLE Analysis
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