Exclusive SWOT Analysis of Giordano- Italian Fashion Brand
Previously we saw the SWOT Analysis of the biggest fast-fashion brand Zara, this time we will look at the SWOT analysis of Giordano.
From commencing its business as an online marketplace for cloth to being Asia’s largest online clothing company. Giordano has come a long way. They manufacture all kinds of apparel for men, women and kids.
The company has a strong brand image due to its effective marketing strategies and using digital channels for running its business. If you want to learn about digital marketing, do check out IIDE Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.
In this case study, we will look at the SWOT analysis of Giordano and how it has created its path of success worldwide but before that let’s know some more facts about the company.
Giordano is a clothing company founded by Jimmy Lai and is situated in hong-kong. The company has over 2,400 retail shops in 30 countries. It is an international retailer of men’s, women’s, and kid’s apparel and accessories. Jimmy Lai named the company to give it a feel and vision of Italian fashion in the consumer’s mind.
Giordano’s demography is divided into different types of age groups to reach their goals, such are those aged between 0-12 and 13-40. The company operated through different segments like retail, distribution and franchisees also. It offers high-quality products at affordable prices.
Quick Stats about Giordano
|No. of Employees||8100 (2014)|
|Market Cap||2.4 Billion (2021)|
|)Annual Revenue||4,852 Billion (2019)|
|Net Income/ Profit||0.397 Billion (2019)|
Services provided by Giordano
Bank of Maharashtra provides services in the following areas:
- Men’s Clothing
- Women’s Clothing
- Kid’s Clothing
Competitors of Giordano
There are numerous players in the banking industry, the top 5 competitors are as follows:
- Christopher & Banks
- Lee Enterprises
SWOT Analysis of Giordano
SWOT analysis helps in understanding the company’s competitive position and devising a strategic plan accordingly. It helps to evaluate a company’s internal (strength/weakness) and external factors (opportunities/threats).
1. Strengths of Giordano
- Popularity – Giordano has built a strong on people mostly in the Asian continent, they have built emotional ties with customers. Now they are looking to expand their business into India through strategic partnerships with the companies in India which have received success in the Indian market such as Flipkart and Myntra, which shows a high scope for their business in India.
- Good Customer Service – Giordano’s makes efforts to provide high-quality service to their customers. They provide good quality of service have been recognized by the list of service records. They have received service awards in 2017 and also receive the courtesy award. Giordano has continuously received such awards over the years. they ensure that they provide quality service to their customers.
- Continuous Changes in Productline – Throughout their company have been known for their innovations of its products and services, management in house developed systems. They are always trying to bring something new to the market.
- Great Management Policy – Giordano’s is also known for its management policy. They have a great management policy which helps them in providing their services effectively across countries.
- Great Branding and Marketing – They have great branding and marketing strategies that give them a competitive advantage. They know how to attract customers to their products, this is one of the main factors in the success of Giordana in Asian markets. They promote their products on various social media platforms.
2. Weaknesses of Giordano
- Slow Response to Customers – They gave a very slow response to customers’ queries this is one of the weaknesses of the company. The company has a very bad review towards resolving the issues faced by the customers which have affected their sales and demand for their products in the markets.
- Less Variety – Giordano has a very limited range of products. They did not have varieties in their products due to this people are not that much interested in their products. This is one of the main weaknesses of the company which they should solve to gather the attraction of customers towards them.
- High Competition– Giordano faces high competition from other brands like Zara, H&M, Westside and many others. The fashion industry is a very competitive market to work in, the company needs to update itself regularly to stay relevant to customers.
3. Opportunities of Giordano
- Using Online Channels – Giordano has great opportunities to expand their business and reach all the people in the world by starting their products online. This helps the company sell its products anywhere in the world and take the company to new heights.
- Increase in demand for clothes – In today’s world, fast fashion is in trend people like to wear and change their clothes with trends due to which demand for clothes has increased. As Giordano is a clothing-based company they started to use this opportunity to increase their sale of products in the market.
- Reduction in Manufacturing Cost – The company can work on its manufacturing rates and prices to become much more affordable to gain many more customers.
- Introduction of New Product lines– Giordano can introduce new product lines in countries they are not present.
4. Threats of Giordano
- Competition from New Entrants – Due to e-commerce, it is easy to start a business online, which leads to a threat to the existing companies in the market. New companies gave discounts to customers and also gave some schemes to the customers which result in the attraction of customers towards their company.
- Competitors trying to emulate Giordano – The companies like e-sprit, hang ten and other companies in the Asian market are trying to eliminate Giordano from the market and increase their business. They are using new business strategies to expand their business and giving more discounts and better schemes than Giordano international this leads to an increase in sales of other companies and a decrease in sales of Giordano.
- Prices – The majority of customers prefer cheap prices over the quality of products due to which many fashion brands are selling products at very low prices. This is a major threat to the company, it needs to work on its costs to be a choice of customers.
Giordano’s current focus is on consolidating and expanding its web pit’s market share in the asian markets presence. Its financials are improving, and the company’s management is hopeful about increasing online sales. They have shown a strong supply chain to survive through the years of pandemics and can increase their clothing line.
Where Giordano falters is their lack of usage of digital marketing methods. Traditional marketing techniques are most costly and increase the risk of inventory management, whereas if the company goes digital it will be able to improve its overall sales. The benefits from digital marketing – cost-effectiveness and connecting to the target audience of young adults (18-30 years) – are important for all apparel brands.
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