JAPAN: Italian fashion designer Giorgio Armani opens his largest project in Tokyo, talks to Reuters about his company's future

Record ID: 465635

  • Title: JAPAN: Italian fashion designer Giorgio Armani opens his largest project in Tokyo, talks to Reuters about his company's future
  • Date: 8th November 2007
  • Summary: TOKYO, JAPAN (NOVEMBER 6, 2007) (REUTERS) GIORGIO ARMANI TAKING PART IN A SHINTO CEREMONY TO OPEN HIS NEW ARMANI TOWER VARIOUS OF ARMANI TAKING PART IN CEREMONY
  • Embargoed: 23rd November 2007 12:00
  • Keywords:
  • Location: Japan
  • Country: Japan
  • Topics: Entertainment
  • Reuters ID: LVA547D3JPG24O8PMNWYIXLLTQP0
  • Story Text: Italian designer Giorgio Armani participated in a Japanese shinto rite on Tuesday (November 6) to bless the opening of his newest and largest project in the world.
    Armani has focused on expanding his business, pushing ahead with projects ranging from hotels and apartments in Dubai, Milan and Tokyo to mobile phones and even an Armani-designed television. His furniture business is growing and he has designed interiors for clients such as film star Leonardo DiCaprio.
    In Tokyo he has opened the Armani Tower, his largest project ever.
    Amid the glitz of the opening ceremonies and talk in the fashion world on Tuesday, Armani, 72, talked to Reuters and talked frankly about the future of his company and said he was open to a tie-up with a wealthy "fashion lover" or another investor and he had an offer from the German maker of Nivea cosmetics two years ago.
    "I would rule that out. Rather if in the future there is, say, a fashion lover, a super-billionaire, who would like to join me to show off a bit as a bringer of money but also security, because he is so rich, and he somehow wants to be part of this thing, this culture, why not?" he said.
    Apart from Germany's Beiersdorf AG, known for its Nivea products, Armani also mentioned French cosmetics giant L'Oreal as a possible partner, but said there were no talks at the moment.
    "Or else, a big group with which I already have a relationship, and to consolidate that relationship through another kind of agreement." he said, adding that potential partners did not have to be fashion groups but could also be perfume companies," he said.
    Armani however ruled out and slammed "exploitative" private equity funds, which have been snapping up fashion firms, and ruled out a stock market listing for his luxury goods empire.
    Speculation over the future of Armani has intensified since private equity firms discovered the juicy profits to be made in the luxury boom thanks to rising incomes and demand from emerging markets such as China, Russia, India and the Middle East.
    On the other hand, global competition has forced the Italian families that own labels such as Prada and Versace to open up to invetors through bourse listings or stake sales.
    "It's an exploitation of the work of so many years -- 35 years of work -- I wouldn't want to see all that ground away only so whoever gains from it, gains from it. And then what happens with my business?," Armani said ruling out talks with private equity funds.
    In May, private equity fund Permira bought Valentino Fashion Group, a label with as much weight and tradition as Armani, in a deal worth more than
    5 billion euros. Carlyle, which lost out on Valentino, is still interested in the luxury goods sector, as are funds such as Blackstone, Axa, Apax and KKR.
    Armani, a shrewd business man whose glamorous evening gowns have for years been a favourite with Hollywood celebrities, has been much more vague about his future plans than other designers of his generation. Valentino Garavani, another Hollywood favourite, is retiring, and flamboyant Roberto Cavalli is considering selling part of his business.
    For his part, Armani said, he is not ready to take it easy.
    "No, at this moment no. You ask me in a moment when I just saw this beautiful property, this space. Finally I have proper luxury store like so many now say is necessary to have, and in Ginza, in this flourishing place. So you ask me at a moment when I am really not thinking about that (retirement)," he said.
    The Armani group reported consolidated sales of 1.474 billion euros (2.13 billion U.S. dollars) for 2006, up 9 percent, while operating profit rose 19 percent to 246 million euros.
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