Giordano was founded by Jimmy Lai in 1980.3 To give his venture a more sophisticated image, Lai picked an Italian name for his retail chain. In 1981, Giordano started in Hong Kong selling casual clothes manufactured predominantly for the United States market by a Hong Kong–based manufacturer, the Comitex Group. Initially, Giordano focused on wholesale trade of high-margin merchandise under the Giordano brand in Hong Kong. In 1983, it scaled back on its wholesaler operation and started to set up its own retail shops in Hong Kong. It also began to expand its market by distributing Giordano merchandise in Taiwan through a joint venture. In 1985, it opened its first retail outlet in Singapore. However, in 1987, sales were low, and the business became unprofitable. Lai realized that the price retail chain concept was unprofitable. Under a new management team, Giordano changed its strategy. Until 1987, Giordano sold exclusively men’s casual apparel. When it realized that an increasing number of female customers were attracted to its stores, Giordano changed its positioning and started selling unisex casual apparel. It repositioned it self as a retailer of discounted casual unisex apparel with the goal of maximizing unit sales instead of margins, and sold value-for-money merchandise. Its shift in strategy was successful. Its sales almost quadrupled, from HK$712 million (US$91.28 million) in 1989 to HK$3092 million (US$396.41 million) in 1999 .
Nowdays Giordano is a retailer of casual clothes and a popular fashion brand . Giordano was operating in East-Asia,South-East Asia,Australia and middle East. Altough Giordano originates from Asia, its Brand Image has become so successful that it plans to open another 2.000 stores worldwide by 2010 in countries like India, Eastern and Weastern Europe as well as North America. Successfuly from Giordano not far from its strenghth in maintain existing markets and its plan to enter new market in Asia and beyond.
The strenght of Giordano
good quality Product and sell them at a reasonable price which will appeal to both sexes and all age, that is value for money. Giordano also have a good quality service that is proffesional ,in this matter Giordano guarantee that customer welcomed with greeting pronounciation that’s make the customer feel good about coming into store. Jimmy Lai was convinced that the product is only half of Giordano sells, Service was the other half, and Jimmy Lai believed that service that was the best way to make customers to return to Giordano again and again . emphasis on providing top services to constitute key in builds brand equity that strong where "Giordano means service" its result gets to be seen deep a lot of appreciation services already be accepted Giordano for many years. The company has developed its service quality over long period of time and has received several awards for its commitment in servicing its customer, the list of service-related awards it had received. It was ranked number one by the Far Eastern Economic Review, for being innovative in responding to customers' needs, for three consecutive years — 1994, 1995 and 1996. And when it came to winning service awards, the Giordano’s name kept cropping up.
Giordano actually understands the importance for staff services its customer in pass on pre-eminent service. A dedicated workforce in all outlet that provides quality service in order to maintain this giordano follow stringent selection procedures to make sure that only those candidates who matched the profile of what Giordano looked for and having attitude “customer first” and “can do” were selected. Giordano give well trainer for its staff and try to change its staffs become an “intrapreneur”, who not only transleted as forwarding preeminent service, but also satisfaction and loyalties staff is higher. another factor that contributed to the success of Giordano was that it had a dedicated, trained, ever-smiling sales force. It considered front-line workers to be its customer-service heroes. Charles Fung, Giordano’s Chief Operations Officer and Executive Director (South-East Asia) said, ‘Even the most sophisticated training program won’t guarantee the best customer service. People are the key. They make exceptional service possible. Training is merely a skeleton of a customer service program. It’s the people who deliver that give it form and meaning’. Selection even continued into its training workshops. Fung called the workshops ‘attitude training’. The service orientation and character of a new employee was tested in these workshops. These situations, he added, were an appropriate screening tool for ‘weeding out those made of grit and mettle’. Giordano’s philosophy of quality service could be observed in its overseas outlets as well, also been designed to motivate staff and shop team to do the best one in services customer. Performance evaluation done with often at each shop of Giordano and each employee thorough to give good customer service.
A strong brand in the market place and a clear view of what the company want to achieve also become the strength of Giordano, a position in the market place that can be taken away or minimize by other competitor for a relatively long period time. Except give good customer service. The other strength of Giordano is Excellence in management of operations, logistics and information technology .Giordno use of modern information technology to manage inventory and forecast consumer demand and that information system can be transmitted in real time to the production process. With this information, Giordano can be understand consumer buying paterns. When one item sold, barcode's information that identifies style, color and price it noted by point of sales cash register and transmitted to that main computer company. Giordano’s shop always been provided with stock that fast moving goods and its customer satisfied because Giordano rare shortage from provide goods. Information technology not a competitive strength of Giordano, on a period where so many information, organization culture at Giordano to utilize smart information that differentiates Giordano with another.
Giordano also give high quality service in comfortable location . Good site selection of strategy location provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins. There are competitive strenght that Giordano have and that is something unique that differentiates Giordano from other competitor . The excellences of Giordano’s are key success to Giordano’s
The weakness of Giordano
Above the strengths from Giordano which very impressive, Giordano also have weaknesses, as we knows Giordano sells simple dress and casual apparel for woman, man and children with the mid-price , but not everybody like to wear over simple clothes like Giordano, clothes of Giordano also less variation and stylish because over simple and monotonous.
Giordano really known as the friendliest shop service. But, unfortunately not all Giordano’s shop. All the staffs serve customers with well. Giordano really training all the staffs with well, but the key fixed on each person, not all staffs understands how to services customer with well with friendly behave to the customer. Such a things not matched with Giordano culture which is friendly and service the customer with well.
The exploitation of the brand positioning Giordano would be profitable in case in economic crisis, So Giordano could lower its liability in manufacturing clothes and use outsourching which will be cheaper, therefore it won’t need to lower quality of service in case of crisis.
Using new market outside the Asia, by exploting the most powerful migration countries of the actual costumers. In Asia , particulary in maindland China and its massive market, represent the main oppurtunity for the company. Its geographical location, gives Giordano a good knowledge of this new oppurtunity over outsiders (Hang Ten,Bossini and Baleno). As culturally close to mainland China, Managing Director may possess a good expertise of customer behaviour in this market.
The retailing environment was becoming more dynamic than before, a change that wasperhaps led by growing sophistication of tastes, and rapid advancements in the media, communications, and logistics environment. Giordano’s response to these trends would be the key to its ability to compete in the future, especially as these trends seem to ‘commoditize’ .
Many people in Asia,Australia even in America they like simple and casual clothes, sometime people love to wear simple clothes like t-shirt and jeans for shopping and having a trip and customer have little to no collective bargaining power. However customer seeking value for money can easily switch from one retailer to another, compared to customer who seek spesific apparel brands There are an oppurunities that proprietary by Giordano to reach successfully.
Until recently, Giordano’s main competitors for low-priced apparel were Hang Ten and Bossini. However, its shift in positioning, and the squeeze of the retailing sector — caused by the crisis, pushed formerly more upmarket firms. Now giordano faced the other competitor that aimed middle-up costumer like Esprit ,Gap and Theme with the same strategy. The opening market in China appeard and will appeal to an increasing multinational company (new competitor) which have the knowledge and the resource to match any advantage of Giordano. Outside of Asia, that very huge competition and well known brands such as Beneton Spa(UCB), NEXT plc and H&M.
Because of the clothes that sells in Giordano too Simple, many competitor or the factory outlet make the imitation clothes of Giordano and sell with the low price.Not only that the clothing market has really low barrier to entry, and new developed countries for all around the world could match the Giordano quality in the coming years.
Competitives rivalry is high and increasing in intensify in the casual apparel industry. This seems to be caused by lower growt rates, and the aggressive behaviour of incumbets who currently focus relatively more heavily on non-price competition. There are threats that have to anticipated with Giordano.
SEGMENTATION,TARGETING AND POSITIONING
Giordano is a manufacturer and retailer of clothing, based in hongkong. That produce women and men clothes. Demographic from Giordano are ages that have been segmented by Giordano to reached their target Market :
1. 2-14 years old
2. 15-45 years old
3. 15-45 years old
Group that become social grade of Giordano are lower middle class until middle class (C-B), all the status (marriage and devorce) and all religion can wear or buy this clothes the occupation can be student,college student, employee,housewife.
Giordano has maintained a significant and consistent brand image that is regional target market can easily associate with, and it has created market share in over 30 countries in Asia,Australia and middle east.target market Giordano are Men,Women,Children and Unisex clothes from lower middle class until middle class. Giordano has developed differentiated Marketing by targeting all segments differently( different brands using to appeal those different segments. Example like for kids or children Giordano make GioKids that sells all clothes for Kids.
Positioning of Giordano
Giordano main positioning is value for Money. This was aided by a resasonable price product quality and service devotion to its customer .the value for money having understood that its will become the fact that customer are agreed to pay a particular price for a particular product that giordano offer . the tangible product receive by the customer ( example skirt and sweater) then the service package offer during the buyer experience (ever smiling,sales force ) this package forms the positioning (value for money) that offered in Giordano.
GROWTH STRATEGY THAT DONE BY GIORDANO
Giordano’s growth strategy
Strategy On the other hand, the other successful strategies of Giordano in proving excellent customer services, information system and logistics and human resource policies and practices should be implemented tactically for different markets. It means customized strategies should be developed for different countries even within Asia because there are some variations between countries in terms of their economic, cultural and social factors even the people.
As early as the 1980s, Giordano realized that it was difficult to achieve substantial growth and economies of scale if it operated only in Hong Kong. The key was in regional expansion. By 1999, Giordano had opened 740 stores in 23 markets, out of which, Giordano directly managed 317 stores Until 2000, four markets dominated its retail and distribution operations — Hong Kong, Taiwan, China, and Singapore Giordano cast its sights on markets beyond Asia, partially driven by its desire for growth, and partially trying to reduce its dependence on Asia, which was shown all too clearly during the crisis. In 1999 Giordano opened four outlets in Melbourne, Australia, and planned toadd 15-20 more stores by the Year 2000. The slow speed of expansion in Australia, due to problems in locating good retail space (most leases are for 4-5 years), might be overcome byacquiring chain stores there. Plans for setting up stores in Europe in October 2000 were already in the pipeline, while South Africa and South America were also under consideration. However, Giordano did not intend to enter the US market in the next 2-3 years due to keen competition. While the crisis made Giordano rethink its regional strategy, it was still determined to enter and further penetrate new Asian markets.
This determination led to the successful opening of 253 stores in Mainland China in 1999, 10 of which were directly managed by the Giordano Group. It opened three stores in Jakarta and planned to open another 12 in 2000, and might even venture into India and Japan. In contrast, it was reducing its reliance on Hong Kong by opening fewer new stores, as the pace of recovery in the Hong Kong retail sector was relatively slow compared to other Asian markets. Instead, it would utilize its cash reserves for expansion into high growth markets like China and Malaysia. Giordano’s success in these markets would depend on its understanding of these markets, and consumer tastes and preferences for fabrics, colors and advertising. In the past, Giordano relied on a consistent strategy across different countries, and elements of this successful strategy included its positioning and service strategies, information systems and logistics, and human resource policies. However, tactical implementation (e.g., promotional campaigns) was left mostly to local managers in their respective countries. A country’s performance (e.g., sales, contribution, service levels, and customer feedback) was monitored by regional headquarters (e.g., Singapore for South-East Asia), and the head office in Hong Kong. Weekly performance reports were made accessible to all managers. In recent years, it appeared that as the organization expanded beyond Asia, different strategies had to be developed for different regions or countries.
Giordano strategy consist of Product, Business and corporate Strategy:
Giordano sees itself as being more than just a retailer of casual apparel. It was able to successfully incorporate customer service as part of its product. Besides its brand name, logo, style and quality, excellent service has become part of the tangible products sold at Giordano stores. Customers have come to associate service excellence as an integral
component of Giordano’s merchandise. Giordano is able to provide a high level of customer service through a concerted effort, which involved every employee of the company. However, it is also essential to recognize the importance of the management and leadership’s commitment to be customer-oriented and to provide high quality service. Besides incorporating service as part of its product, Giordano focuses on the concept of value-for-money. Giordano is constantly aiming to improve the value of the product. Being customer-oriented allows Giordano to focus on what the company’s products mean to the consumer. Customers are often encouraged to request certain product adaptations if current products fail to meet their expectations. For instance, Giordano removed its logo from some shirts. Another example is Giordano’s invitation to customers to set the price of its jeans. Giordano’s other product strategy is to sell a small number of core products in its stores. While other retailers have 200-300 items, Giordano features no more than 100 variants of 17 core items. Flexibility and speed is essential in the retailing industry, especially when the fashion trend is evolving constantly. Maintaining a restricted range of core products has allowed Giordano to respond to market changes faster than its competitors, and to keep costs down.
There are three generic strategies advanced as business strategies (Porter): cost leadership, differentiation and focus, and combinations of these three pure strategies. Giordano seems to pursue a combination, a focused differentiation strategy. The primary source of differentiation comes from Giordano’s commitment to quality, in terms of the
products it sells and the service it provides to customers. This can be illustrated by its dedication to training and motivating its front-line staff as well as its no-questions asked return policy. Giordano’s strategy is focused on customer responsiveness (understanding what its customers want and putting their interests first), as well as on a specific niche – value-conscious consumers who want affordable yet trendy casual apparel with reasonable quality. However, this is done carefully to prevent a loss of existing customers who may become confused by the value proposition that Giordano provides to them. For instance, its launch of the Bluestar Exchange line clearly indicates its commitment to the existing value-for-money segment, but at the same time it is upgrading its core brand’s position so that customers may eventually perceive that Giordano stands for more than just ‘low priced’ apparel. With the successful launch of the new product line and re-launching of Giordano Ladies and Junior, Giordano appears to have overcome the main problem that niche strategies face ie. the inability to move to new niches.
Giordano initially adopted a tapered vertical integration (backward) strategy, as it had manufacturing plants in the Philippines and Mainland China, while also sourcing from external suppliers. This was deemed necessary to allow better cost and quality control, and the strategy worked until the currency crisis hit Asia. Competition amongst suppliers (manufacturers) of good quality apparel became so intense that prices came down dramatically, and it became an opportunity cost to rely on Giordano’s own manufacturing division for supplies. There could be other reasons, such as rising operating costs, putting pressure on the firm to look for alternative sources of supply. In fact, in 1999, the Philippines plant was closed down, and Giordano is now concentrating on their core business in retailing/ distribution. This can also be evident in their allocation of investments to expand its retail outlets. this strategy is risky but consistent with Giordano’s core competency i.e. in customer responsiveness as opposed to operational efficiency.
Giordano Key Succes Factor
Giordano’s home base, Hong Kong, was flooded with retailers, both big and small. To beat the dog-eat-dog competition prevalent in Asia, especially Hong Kong, Lai felt that Giordano must have a distinctive competitive advantage. Although many retail outlets in Hong Kong competed almost exclusively on price, Lai felt differently about Giordano. Noting successful Western retailers, Lai astutely observed that there were other key factors for success. He started to benchmark Giordano against best practices practice organizations along four key areas: (1) computerization (from The Limited), (2) a tightly controlled menu (from McDonald’s), (3) frugality (from Wal-Mart), and (4) value pricing (from Marks & Spencer) (Ang 1996). The emphasis on service and the value-for-money concept had proven to be successful.
1. Giordano was excellence in design comes from the integration of many activities in the value chain; it involves intangible elements such as organizational culture; and it does not reside in any particular individual. Thus, it is more difficult for competitors to “poach” this source of advantage and overtake Giordano, as compared to simply acquiring superior technology or poaching good managers. Moreover, even if competitors were to obtain this source of advantage, it might be difficult for them to implement it as successfully, because many factors such as the type of organizational culture and leadership would vary from company to company. Nevertheless, Giordano should never rest on its laurels. Rather, it should look into new ways of improving and strengthening its advantage. One important way of doing so is to continually invest in its human resources; as Fung (former Chief Operation Officer and Executive Director, South-East Asia) rightly said, “People are the key”.
- Excellence in management of operations, logistics and information technology
systems: this includes effective supply chain management, inventory control,
distribution, and integration of purchasing and selling functions. Cost savings
from efficient operations are transferred to customers, thus delivering “value-
- Excellence in marketing and branding: strong positioning, brand equity help to build consistent customer loyalty . With positioning that helps instant transfer of key values giordano offer (Value for money, good service and good quality clothes) ,customized marketing mix and excellent brand recognition due to high advertising budget.
- Excellence in service: continual commitment to providing excellent customer
service and response. This is the result of integration of the corporate
philosophy and leadership, service orientation of supporting functions like
human resource policies (e.g., selection, training and remuneration of frontline
staff) and information systems, and performance monitoring (e.g., regular
evaluations of service standards at store level and mystery shopping) .
- Good site selection: Giordano’s location strategy provides a competitive
advantage because of its direct impact on ability to generate high volume
customer traffic while keeping low margins.
The good quality of service and The quality of training of the staff and the transfer of learning to the staff Giordano see its company provide to sell the service and experience.The target is make the cutomer feel to like when entering shop giordano,service giordano guarantee all customer greeted with smile, let customer to try infinite, reservasion the product within 3 day, serving marginal stitching and installing clasp free of charge and also conversion policy without boundary time which very liberal. Like slogan from Giordano that is “Giordano means service”.Giordano also guarantee staff any position getting various program of training and refreshing courses to gumming friendliness every staff with all entire activity Giordano. to guarantee each every shop and each employees give the good cutomer service, evaluate the job conducted often at shop storey level, and also each employees.
- Low stock turnover , reducing year of year helped by computer aided software. With information technology (IT), Giordano was able to skillfully manage its inventory and forecast demand. When an item was sold, the barcode information, identifying size, color, style and price was recorded by the point-of-sale cash register and transmitted to the company’s main computer. At the end of each day, the information was compiled at the store level and sent to the sales department and the distribution center. The compiled sales information became the store’s order for the following day. Orders were filled during the night and were ready for delivery by early morning, ensuring that before a Giordano store opened for business, new inventory was already on the shelves. Another advantage of its IT system was that the information was disseminated to production facilities in real time. Such information allowed customers’ purchase patterns to be understood, and this provided valuable input to its manufacturing operations, resulting in less problems and costs related to slow-moving inventory. ‘If there is a slow-selling item, we will decide immediately how to sell it as quickly as possible. When the sales of an item hits a minimum momentum, we pull it out, instead of thinking of how to revitalize its slow-selling sales.’ Giordano stores were therefore well stocked with fast-moving items and customers were happy, as they were seldom out of stock of anything.
Giordano International Limited Established in 1981, is a leading international retailer of men’s, women’s and children’s . by developing and identifying a marketing mix for this huge segmen will be usefull, therefor Giordano has divided this market in sub-segmen for those with different needs and different purchase habits. Thus, Giordano sell under different brand names :“Giordano”, Ms.Giordano “Giordano Ladies”, “Giordano Junior”, “Bluestar Exchange” and Giordano Concepts.
Mainstream Giordano brand focusing on quality apparel for men and women. Present in all markets in which Giordano International Limited operates. The brand's goal is to be appealing to the everyday shopper, anywhere at anytime. The brand boast seasonal exclusive and innovative casual styles in many colours. Along with seasonal lauches, the brand also gives customers access to basic and simple unisex tees and polos as well as a large range of bottoms in a variety of fabrics, including cotton, linen and denim. The brand was the company's first and consequently possesses a more extensive worldwide network of stores than any other Giordano brand. Giordano is the only international brand that is, for the time being, internationally franchised by Giordano International Limited, the other Giordano brands are all fully owned by the company. This Product that sells for woman and men . the type of clothes in giordano are very simple.
1. Trousers ( available in textile and denim material )
2. Jeans (available in long jeans and short jeans )
3. Poloshirt ( full colour)
4. Plain T-shirt or colour T-shirt
5. Towel ( with colour :pink and mocca)
6. Underwear for men
7. Accesoris ( like belt and socks, this product just sells for men )
8. Cardigan (with full colour for men and woman)
9. Tank top (for woman)
Upscale market women's clothing much on the line with CUE. Operates mainly in the Asia Pacific region. Prominent in mainland China, Hong Kong,Malaysia and Singapore. Lifting modern theme and do not burst the time with the use of palet of colour monochromatic make popular among woman which wish always come up peaceful in dressing. Black, white and neutral make an impression on the natural and strengthen the principle in entirety, Begin from collection and interior there is less is more. At this Giordano Ladies more targeted for of career women or housewife. Because a lot of clothes simpel which is not many colour pattern.
2. Tank top
5. Trousers (with textile material)
8. Watch (for women)
A more upmarket brand of Giordano casual attire with a high emphasis on its own "less is more" retail approach. The brand focuses on on the idea that less is more than just more, but that is cool as well. The brand's said "less is cool" approach involves innovative and modern black, white and grey monochromes in a large variety of styles. The approach gives the brand a very upmarket causal clothes attitude, very much on par with other international brands Polo Ralph Lauren and Lacoste. The Concepts range is significantly more exclusive than mainstream Giordano, as such Giordano Concepts only extends itself to the Asia Pacific market, in particular Hong Kong, China, Taiwan and only one store in both Singapore and Malaysia. Giordano concept targeted to teenager and the youngster because the design of the product consist of cartoon picture and very attractive. Product that sell in the Giordano concept are :
1. T-shirt (white,black,grey)
3. Tank top
A more affordable brand of Giordano causal clothes for the budget conscious shopper. Prominent in most countries in which Giordano operates. Giordano Bluestar Exchange was rebranded by the company in early April last year. The original aim of the brand was to make Giordano more appealing to the budget conscious shopper. However, after nearly 6 months of planning last year the company revealed the new BSX brand with the opening of its first store in Lung Cheung Mall in Hong Kong. The target of the change was to make Bluestar Exchange, now BSX, into a brand more appealing to the young and to those young at heart. The brand's new direction involves simplifying everything and offering new designs and styles to give BSX an edgy and urban attitude. Giordano hired relatively new company !TH!NK to head the marketing of the new BSX with hopes that a new fresh company could provide an original out of the box approach to promoting the brand. Giordano target is to re-brand Bluestar Exchange into something that would appeal to the young and young-at-heart, and our direction is to simplify everything from design, style offering to visual merchandising to achieve a sleeker, more edgy and urban attitude for the brand. Product that sells in Bluestar Excange not far from Stylish, Casual and more full colour. As a key component of the program, we will put together a number of T-shirt collections to reflect the new BlueStar attitude. Peter is in full agreement with the direction and is giving the project a lot of personal attention and support. Product taht sells in BSX are:
- t-shirt (with full colour)
- colour poloshirt with line
- Long shirt
- Accesoris (wallet,belt socks)
'Giordano Junior was founded under the same principle of Giordano, simplicity. We wanted to offer parents an easy clothing solution for their children. Giordano Junior clothes are robust, colourful and easy to care for, three pre-requisites for parents. In addition, their cost-effectiveness won't hit parents in the wallet, especially when you consider that the years between three and 14 are perhaps the biggest growth spurt children go through.' The range is designed for children at play, with a simple, sporty andfun atitude.
The clothing is available for boys and girls in Giordano Junior Indonesia offering a range of unisex clothing in the forms of jackets and jump suits. Product that Boys can choose from t-shirts, shorts, jeans, cargo pants, skaters and shirts, while girls can pick from t-shirts, shorts, jeans, skaters, tops and skirts. Giordano Junior also carries a range of accessories in the form of caps, belts, briefs, vests and tank tops.
With its positioning which is value for money .price clothes that is at not giordano overestimates.oman clothes as tank top, sweater, ranging cardigan among (Rp.100. 000 - Rp179. 000). Man clothes as trousers /jeans (Rp299.000) and for shirt (Rp.199.000) see from the price , the pricing strategies and tactic that Giordano’s use is psychological because it takes advantage of the customer’s physchological desire to pay as little as possible.
Giordano International originates from Asia , its brand image has become so successful that is plans to open another 2000 store worldwide by 2010 in countries like India,Eastern and Weastern Europe as well as North America. Now giordano has opened 1700 stores in Greater China, Japan, Korea, Southeast Asia, Australia, India and the Middle East. Product that sells in Giordano are casual simple and stylish. Giordano's major markets in the Chinese mainland, Hong Kong, Japan, Singapore and China Taiwan. It in other countries and regions as well as some of the market share, such as Australia, Indonesia and the Middle East. Giordano always choose good location that there are very high traffic shopping. Giordano that operated in Indonesia was almost at the big city that have high traffic shopping in Indonesia like Jakarta,Bandung,Bali,Medan,Surabaya,Bogor and Semarang.
Jakarta (mal taman anggrek,Plaza semanggi, Pondok Indah mall,Mega Mall,Pluit junction, Mall Kelapa gading, citra line,Blok M Plaza),Bogor (Mall Ekalokasari,Botani square),Surabaya (Tunjungan Plaza), Medan (Plaza Thamrin), Bandung (Bandung Supermall,Bandung Indah Plaza dan Istana Plaza).
- Giordano Ladies and Giordano concept
Jakarta (Grand Indonesia)
- Bluestar Exchange
Mega mall (jakarta)
- Giordano kids
Plaza Semanggi (jakarta)
Gallery mall (Jogjakarta)
Plaza Ambarukmo (Jogjakarta)
Giordano have Aggressive advertising and promotion .Fung said, ‘Giordano spends a large proportion of its turnover on advertising and promotions. No retailer of our size spends as much as us’. total advertising and promotion expenditure for the Group amounted to HK$41.5 million, or 3% of the Group’s retail turnover. In addition to its big budget, Giordano’s advertising and promotion campaigns were creative and appealing. One such campaign was the ‘Round the Clock Madness Shopping’ with the Singapore radio station FM93.3 on 1 May 1994. Different clothing items were discounted between 20-50% at various times beginning at midnight. For example, jeans were offered at a 20% discount from 12 a.m. to 1 a.m., while polo shirts and T-shirts were given a 30% discount from 1 a.m. to 2 a.m., and then shorts at a 40% discount from 2 a.m. to 3 a.m. To keep listeners awake and excited, the product categories were on sale at each time slot were only released at the specified hour, so that nobody knew the next items that would be on this special sale. Another success was its ‘Simply Khakis’ promotion, launched in April 1999, which emphasized basic, street-culture style that ‘mixed and matched’ and thus fitted all occasions. In Singapore, within days of its launch, the new line sold out and had to be re-launched two weeks later. By October 1999, over a million pairs of khakis trousers and shorts had been sold. This success could be attributed partly to its clearly defined communications objectives, as Garrett Bennett, Giordano’s Executive Director in charge of merchandising and operations, said, ‘We want to be the key provider of the basics: khakis, jeans and the white shirt’. Elsewhere in the region, sales were booming for Giordano, despite only moderate recovery experienced in the retail industry. Giordano’s strength in executing innovative and effective promotional strategies helped the retailer to reduce the impact of the Asian crisis on its sales and take advantage of the slight recovery seen in early 1999. Aggressive advertising and promotions also played a significant role in the successful re-marketing of its core brand and re-launch or introduction of sister brands, Giordano Ladies, Giordano Junior and Bluestar Exchange.
Giordano really success in strengthen campaign its advertising at various country, but at Giordano’s
“We differentiate a Giordano Concept Store from a regular Giordano store by the total experience it offers its customers. We have to combine many different elements such as product, visual merchandising and interior design to create this new experience. For instance, Concept Stores will feature exclusive designs and limited editions in their product offering. They will also have more dramatic window displays and in-store presentations with greater emphasis on mix-and-match to inspire customers. Our aim is to have the Concept Stores reflect and communicate the new “dress up casual” attitude of our updated collections,” remarked Melinda Wong, Group Creative Director. Our Concept Stores are aimed at helping us present our new collections in the best possible light and maximizing the impact. They are an important part of our overall strategy to make Giordano more relevant to consumers” continued Ms Wong.
Not only are we bringing to market the most fashionable colour collection in summer 2006, Giordano also dressed up its flagship stores in Hong Kong and Taipei in stylish, abstract wall graphics and contemporary images. Everything’s about being cool and collected” remarked Melinda Wong, Group Creative Director. As a brand that produces high quality apparels that make people feel good and look great, Giordano understands that customer service and good shopping environment play important roles in its brand image.
In indonesia, Giordano arrange the store was pretty good, example in Grand Indonesia in there found Giordano Ladies and Giordano concept. First we come to that store we feel kindness from giordano staff , the clothes position arrangement very neat, until bring comfotable situation for shopping in Giordano But not all giordano shop own the balmy and good atmosphere for shopping, for example like Giordano shop residing in Plaza Semanggi sometimes when we will enter to Giordano shop the clothes if we see in rack is not arranged with neat and very mussy so that causing feel not comfort when will Shopping at Giordano.
That’s why its retail stores are designed to reflect Giordano’s brand image through its signature clean and simplistic outlook while its brand promoters are known to be casual and friendly. The right impression of the friendly shopping environment and brand promoters have created a lasting positive brand image of Giordano in the mind of its customers.
So, whether it is the emotional connection with the brand name, colours, products or even the shopping experience – all these contribute toward the total perceived brand image of Giordano in the customers’ minds. If certain areas of the brand are not satisfactory, the perceived brand image may eventually change. Giordano’s success derives from its commitment in providing quality products and services while promoting a desirable brand image that can be easily associated by its customers around the world.
Service of Giordano staff existing in Indonesia is gracious. Like we know that Giordano always give training to their employee not see what is their position and management. Giordano always also to perform job evaluate for assuring that customer given satisfaying service from Giordano staff. Successful key from friendly service to customer is located in staff. Sometimes a lot of Giordano staff in Indonesia for example; in a mall do not serve the customer better, when customer enter shop not greeted with smile, fierce attitude or not giving friendly atiitude to customer. But many Giordano staff is given friendly attitude to customer with Giordano culture that is giving satisfying professional customer service.
Shopping process in Giordano very balmy, we take example shopping clothes in Giordano Ladies in Grand Indonesia, especially from we buy the clothes until payment. When we enter to Giordano store, Giordano staff greeting with saying “good afternoon”, then they pass in us to see the collections from giordano. staff from giordano pass in us to try the clothes freely, after we choose the right clothes, staff from Giordano will take the clothes matching with our size measure. Intake product take place quikly become customer not await too long. Paying system in Giordano is very complete start from cash, charge and credit, usually if paying with the credit card will be imposed charge 3%. Paying process very quickly and not complicated so that customer like shopping in Giordano, because customer getting value that is good service and balmy shop place.
WHY GAP,ESPRIT AND THEME BECOME COMPETITOR OF GIORDANO
is an American clothing and accessories retailer based in San Francisco and California. Gap had approximately 150,000 employees and operated 3,139 stores worldwide in the United States, Canada, Mexico, France, Ireland, Indonesia, Japan, South Korea, Kuwait, Malaysia, Peru, Philippines, Singapore, Turkey, the United Arab Emirates, and the United Kingdom. All kind of Gap stores Gap ;Gap Outlet, GapKids, BabyGap, GapBody, GapMaternity, Love Me Gap (Gap Accessories). Its target customers were younger generations. Gap's hottest seller at the time was its "basic" look, which consisted of its signature blue jeans and white cotton t-shirts. Its founders realized that jeans were becoming popular among the younger generation of customers. Nevertheless, the company recognized that despite its popularity among the youth, there were not enough assortments of jeans in the clothing outlets. Capitalizing on this deficit was merely the next step in expanding. Gap's founders were sure that jeans could be sold through a chain of small stores devoted solely to that product. As this business idea became successful, Gap expanded its line of offering and now Gap offers a range of clothing for men, women, and children. As Gap's business began to boom, it also began to expand and send its manufacturing jobs abroad. Gap's promotion strategy has been blamed for the company's bust. Due to lack of a clear message, it has been alleged that Gap has lost contact with its core customers, which the company is attempting to win back. Gap is the only national retailer to spend more than 2% of its marketing budget for online marketing. As a result, the company's e-commerce website has been cited numerous times as a model of stylish efficiency. Gap promotes its products through gift cards, catalogs, advertising programs on TV channels and magazines. Gap tries to position itself as a stylish casualwear retailer in a fair price. However, its marketing efforts to reach out to upperclass, luxury consumers is blamed for recent problems in the company .In addition, Gap's garment designs and products varies from North America and Western Europe. Products sold in the United Kingdom and Western Europe are targeted towards a European sense of style, whereas the Gap's North American garments and accessories are designed particularly for North Americans. Gap placeGap's main opportunity to reach its customer is through its stores. Gap operates stores in the United States, Canada, the United Kingdom, France, Ireland, Korea Mexico and Japan. The Gap, Inc. also has franchise agreements with unaffiliated franchisees to operate Gap or Banana Republic stores in Singapore, Malaysia, United Arab Emirates, Korea, Kuwait, Qatar, Bahrain, Oman, Saudi Arabia,Cambodia and Indonesia. As of February 3, 2007, The Gap, Inc. operates a total of 3,131 store locations. Marketing strategy of Gap The Banana Republic stores try to convey a more sophisticated image for an upscale customer, whereas Gap stores appeal to a broader midrange of customers. The Old Navy chain is designed to appeal to younger generation of customers by emphasizing "fun, fashion, and value" through a store experience that delivers "energy and excitement." Although Gap, along with other retail-store chains, has been criticized for blandness and uniformity in its selling environments, the firm maintains that it tailors its stores "to appeal to unique markets" by developing multiple formats and designs.
Gap also become competitor of giordano because many similarity about product,brands and promotion. Though GAP aiming high-end costumer however target market GAP and Giordano is equal that is younger generation but for all ages under different brand, when Giordano will access to america market automatiicly Giordano must look out on GAP their competitor, because in america market GAP was inclusive of peritel by mid-price but trendy fashion.
GAP also own sister brand equal with Giordano what is more amount and complete there is Gap ;Gap Outlet, GapKids, BabyGap, GapBody, GapMaternity, Love Me Gap (Gap Accessories). clothes owned by Gap of much the same to with the clothes owned by giordano that is clothes casual ( T-shirt And jeans) , promotion conducted by a aggresive Gap enough and interest.
Products and brands: Esprit, Shihe Dress, Red Earth, Salon Esprit, Esprit Bed & Bath, Esprit Kidswear.
Esprit Holdings is a holding company for the Esprit brand and its interests in clothing, cosmetics, fashion accessories, manufacturing and wholesaling. The company was formed in 1981 and listed on the Hong Kong Stock Exchange in 1993. Esprit Holdings is controlled by Worldwide Thousand, which owns almost 60% of the company’s stock. Major subsidiaries include Esprit Asia (Distribution), Esprit Far East, Esprit Retail (Hong Kong) and Shenzhen Shihe Dress. Esprit Holdings is attempting to acquire Esprit in the USA to expand in what should be strong market for the chain. Esprit has been trying to consolidate its integration in Europe and Asia in since 1997 and is now targeting the USA. Esprit holds 5% of Esprit US presently. Esprit operates one million square feet of retail space globally across 446 outlets, with 360,000 square feet in Europe and 600,000 square feet in Asia. The company has 7,500 wholesale customers. Esprit is looking to spin off its European operations to raise capital for expansion. A relaunch in the UK is also planned to take place in 2001. Esprit is a Hong Kong-based women’s wear retailer with branches overseas throughout South East Asia and in the UK. The company operates largely through stand-alone branches in Hong Kong’s upper end shopping malls as well as department store concessions. A new branch was recently opened in the new Citigate mall on Lantau Island. The company has developed a strong brand and issues a cobranded credit card with Standard Chartered Bank. The company also runs an in-store concession called Esprit Kidswear and Esprit Bed & Bath. The company has also established several Esprit hair and beauty salons under the Salon Esprit brand. In Hong Kong, Esprit has 43 company owned stores with a total floor space of 135,462 square feet. Esprit is also spending HK$30 million to develop a newoutlet in Causeway Bay covering five storeys of the Lee Theatre Plaza. The new site was formerly the Sincere department store which closed in 2001.
Esprit Holdings: Red Earth
At present the Red Earth brand of cosmetics is not available globally, though is expected to be rolled-out further in 2000-2001. Red Earth has a global network of 18 retail stores and 62 in-Esprit concessions. In Australia and New Zealand the brand is prominent with 50 outlets. Esprit Holdings has also entered into a variety of licensing deals for the Esprit brand including watches, eyeglasses, homewares, bed & bath items, sunglasses, jewellery, cosmetics and fragrances. The company has also established a joint venture with China Resources Enterprises to develop the Esprit brand in the Canadian marketplace. In December 1998, Esprit announced plans to expand its European operations and list on the London Stock Exchange. Europe currently accounts for 60% of total sales and France and Scandinavia have been targeted as market for growth. 15 company-owned outlets in the UK were closed in 1998.
Major market esprit is in europe, while Giordano in Asia only a few store which in europe. Esprit becoming one of competitor Giordano, because Esprit having equal positioning with Giordano is value for money. But Esprit aiming at more up than Gioradano with target market ladies casual, but also other specialized lines for children. Clothes owned by Esprit more stylish snd trendy. Sister brand from esprit is Espirit Shihe Dress, Red Earth, Salon Esprit, Esprit Bed & Bath, Esprit Kidswear. watches, eyeglasses, homewares, bed & bath items, sunglasses, jewellery, cosmetics and fragrances that is goods which sell at Espirit. Giordano also releasing product of hand clock, become indirectly esprit become the competitor for giordano because Esprit and Giordano have the same positioning.
Theme International Holdings Limited
Theme become the competitor from giordano because Theme try the benefit in clothes of woman casual by upmarket positioning , fashionable and sylish and with the goals of market ladies which directly become the competitor giordano that is giordano ladies. Because clothes which sell in Giordano Ladies the goals of market is business wear for ladies is same with the goals of market Theme.
SHOULD GIORDANO DO REPOSITIONING ?
Giordano’s positioning is based on providing Value for money merchandise of discounted casual unisex apparel. It is important to consider how well Giordano has matched its strengths to the actual positioning of the brand. But, doing that is not enough. The company must succeed in differentiating to the competition to really succeed in this positioning. Success positioning that already have been reached are ;
- Clarity of the Giordano group: the service exeed the expextation of customers. The message is clear “to make people feel good and look great”
- Consistency of the group : since 1987, the group has positioned it self as “value for money, with good service”.
- Credebility: the image of the brand its well implemented in the mind of giordano customers, the brand has enjoyed many awards received for product and service quality.
- Competitiveness : As seen before, the differentiated advantage of the brand as a service provider has brought many years of success for the group.
Giordano repositioned its brand to focus on value-added products and broadening it appeal by improving on visual merchandising and apparel. The company also emphasized on the merchandise that is relatively mid-priced which means “inexpensive yet contemporary and trendy”, and offers quality, value and excellent customer services.
Repositioning is not necessary for the company because Giordano’s relatively mid-priced positioning worked well: “the inexpensive yet trendy” clothing appealed to Asia’s simple customers, especially during the Asian economic crisis. However, with the Asian economy booming, customers now have more disposable income and spending power. Thus, Giordano could find it worthwhile to alter their brand image into a more high-value, high-quality and therefore higher price market.
This could mean primarily repositioning Giordano as a higher priced and higher value brand
Actualy, It is not necessary for Giordano to follow same positioning strategies for different market but it will depend on the market condition of a particular whether to follow standardized or customized strategy. The company can go after with standardized positioning strategies “value-for-money merchandise” for different market within the same region like South East Asian countries. But before implementing this standardized positioning strategy Giordano needs to understand the single market on the basis of consumer’s tastes and preferences about the product and promotional activities in the other country.
Now the fact is whether or not, I think before Giordano should reposition its self against if they want enter to new markets like US or Canada. Before change the positioning Giordano must do the research about how the market condition in the US and Canada, How about the Customer Behaviour in there. Because each American People consumer behavior are very different example like rich American people love to be trendsetter about everyting mostly about they style and fashion and really want to be the top of trends. but the middle American people they more care of quality from clothes and the mid-price. Maybe Giordano should buy demoghraphy data from the agency in each country, so Giordano could observe about Target market Giordano. after see all the data Giordano could decide need or not to doing the repositioning, if from the data show Giordano should do the repositioning ,Giordano Should do the Repositioning to reached target market. After observation of Giordano positioning according to market residing in US and Canada, because Giordano positioning have strong and positioning is an image from a company, maybe Giordano have to adaptation marketing strategy ( marketing mix) with the market circumstance residing in US or kanada because such as those which we know, each every state have the culture, characteristic of cutomer and appetite about way of different dressy style. Become to alter or do not of positioning if will enter the new market is depended from research conducted by the company.
“GOOD AFTERNOON GIORDANO” DO YOU THINK THAT IS NECESSARY?
Such as those which we know that one of excellence from giordano are proffesional service of cutomer, giordano guarantee that every cutomer that entering Giordano shop will be greeted with the smile greeted pronounce . I feel the pronounce greet like " good morning" or " good afternoon" such as those which we hear the time enter the shop giordano is of vital importance, in consequence represent the most important service. seen from strategy facet ,if we wish to enter the new market possible we have to, because different countries and region have different personal cultural and charateristic. So, the effect of differencies are must make our strategy adjustable with the exissting culture. But each;every state surely have the same culture about courtesy possible only the way just different of how to greeting . For example in American state salute by saying " good morning", Indonesian state " good morning", but differing from at japan state first of all we have to bend our body beforehand thereafter newly we say the greeting. Become sometime effect from the greeting uttering difference of make giordano service system adjustable.with give the uttering greet, make our appearance dan strong positioning in the minds of customer as very friendly store. And cutomer feel paid attention to. From whit of like just greeting uttering indirectly we have earned to maintain the cutomer in the long term on the basis of belief and faithfulness of cutomer to Giordano. culture owned by the giordano is provide excellent customer service and giordano have reached for the service awards. Jiak Matter of like uttering greet to customer which come to shop giordano is not conducted, hence customer will be disappointed, because at the opposite of big name from famous giordano by " best is service shop" giordano do not provide the friendly service to its customer
SHOULD GIORDANO ADAPT ITS STRATEGY IF WANT TO ENTER GLOBAL MARKET?
I think Giordano should adapt their strategy if they want to enter global market, because the marketing strategy that Giordano have may not be same for new/global market where the company is willing to enter. The marketing mix mainly deal will arrangements of the 4P’s (price,promotion,people and place). before we change our strategy we have to research based on STEEPLE (social and cultural,technological,economy,legal and eviromental) from one country that we want to enter, next, we have to research to about consumer behaviour and market condition we have to found the data was accuratelly. Maybe Giordano want to used the successful strategy which currently use for other market. Giordano also have to know what consumer need and want also what trends in that country ? we do that because different strategies had to be developed for different regions or countries because in each country found different charateriatic. If our product want to acceptable in one country, we have to customized our strategy and adjusted with requirement of market.
RECOMENDATION TO MAINTAIN GIORDANO POSITION
To maintain their position , because fashion change very quickly giordano product must be design with various variation but still with same Quality and value for money so customer is not boring to undress Giordano that over simple ,manufactured and deliver to their stores. We do this because we don't want upset customer because do not become to buy just caused runs out stock goods.
Such as those which we know that Giordano is shop giving best service for that in recruiting staff, giordano have to chosen the nature of customer " can do" and “Custumer first", to remain to a watching positioning giordano have to be out for assure culture that is serve the cutomer professionally applied better moment of giordano enter new market. management giordano have to often control all staffnya to conduct the work better.
Giordano have to Minimization budjet advertising. Because giordano have enough recognized in the world,so I think the giordano needn't make the mass advertisement campaign if the state have recognized the giordano, for example giordano only advertise in tv or in magazine, chosening effective magazine so that earn direct read by goals of market giordano. but if giordano will access to market as in famous us with the state fashion. Giordano possible have to make the more creative and interesting advertisement. creative advertisement will draw of attention. In early grand opening giordano have to give the promo buy one get 2, or with the expense of so much getting souvenir from giordano.
Giordano have to chosen the expense place like mall in the middle of town , because usually mall in the middle of town , or environmental all worker own the high purchasing power ( expenditure place have to be strategic)
Giordano remain at price with the same quality. If giordano do price change possible sale of giordano will be downhill. Giordano should determine strategic and tactics price.