Italian fashion designer Giorgio Armani has died at the age of 91. This legendary figure who is both a designer and an entrepreneur not only created a unique elegant aesthetic, but is also one of the last founders of the luxury goods industry who still insists on operating independently.
Designer Giorgio Armani at the Giorgio Armani Privé Fall/Winter 2021/2022 fashion show
Unlike many of its peers that have long been merged into groups such as LVMH and Kering, Armani has always maintained the private nature of the company and controls all decisions by itself. In 2024, the group will achieve sales of approximately US$2.7 billion. Through strict equity and governance arrangements, he ensures that the brand can withstand external acquisitions.
With Armani's death, the company will face its biggest test: how to successfully enter a new stage while preserving the founder's legacy.
According to the arrangement, the controlling interest will be transferred to the "Giorgio Armani Foundation" established in 2016, and the foundation will supervise the development of the group to ensure independence. During his lifetime, Armani revealed that he had selected three successors to join the foundation's management, but the details were not made public. The core team includes long-time partner and menswear director Pantaleo Dell’Orco, niece Silvana Armani, who has long been in charge of womenswear, and another niece, Roberta Armani, who is responsible for social relations.
Armani also drafted new articles of association during his lifetime, stipulating a multi-tiered ownership structure and prudent acquisition and debt policies, and setting limits on potential equity transfers. While listings are not banned outright, approval by a majority of the board of directors is required.
Even so, the future of this iconic brand will still arouse great concern in the industry. Historically, luxury brands have rarely had the opportunity to appear in market transactions.
In fact, Armani's death also symbolizes the end of an era. In the past few decades, designers and business owners had almost absolute say over the brand and were responsible for everything from creativity to expansion; in today's industry, creative directors are more of a hired role and are constantly replaced by the group.
Since its establishment in 1975, the Armani Group has covered the high-definition line Armani Privé, the youthful Emporio Armani, and the more popular Armani Exchange, and has also extended to lifestyle areas such as home furnishings, restaurants, and hotels. In recent years, the company has increased investment to promote the return of e-commerce to self-operated stores and renovate stores. However, revenue fell by 5% in 2024 and operating profit fell by nearly a quarter.
Armani once emphasized during his lifetime that brand value lies in independence and heritage. The last lesson he left to his team was to stay humble: "There are too many people in this industry who are too self-aware, so it is especially important to keep a low profile."