This past Thursday, March 14th, Georgetown students had the opportunity to hear CEO of Armani Corporations Graziano de Boni. The event was hosted by Georgetown’s McDonough Retail and Luxury Association in Lohrfink Auditorium. Mr. de Boni has been the CEO of Armani Corporations since 2010. Previously Mr. de Boni was President of Reed Krakoff of the Coach Group and President and CEO of Prada USA. He also worked for Valentino Fashion Group, specifically with Valentino USA and Hugo Boss.
Mr. de Boni began his discussion with background information on the luxury industry. He explained that on a global scale, the luxury industry is expected to grow between $312 to $325 billion by 2015. Europe continues to lead as the largest consumer of luxury goods, however it should be noted that this does not mean the consumers are Europeans. According Mr. de Boni, a large part of why Europe leads in luxury good consumption is due to tourist shopping abroad. As a result, tourists account for 40% of global luxury. This number is expected to continue growing. Additionally, the Chinese consume a fourth of all luxury goods worldwide, another major trend in the industry. With tourists accounting for a large component of luxury consumption, airports have begun to incorporate luxury retailing. This trend is highly apparent internationally and is just starting to occur in airports in the Americas. Throughout the luxury industry, the distribution of product is changing; this includes the rise of e-commerce and increasing numbers of designer freestanding stores. Furthermore, Mr. de Boni explained that the luxury industry is a client-centered culture as this is one of the keys for a successful luxury business. As a result, the consumer is going to play an increasingly more powerful role in driving the economy of the luxury industry. As he said, the industry is going “from consumerism to consumer imperialism.”
Mr. de Boni continued with his discussion about Armani Corporations. Armani is unique in that it is a company involved in businesses in areas beyond the luxury market. Not only is it involved in different sectors of the fashion industry, but it also has business ventures in interior design, restaurants and hotels. These vast business endeavors are part of Armani’s open vision; essentially, it is “a luxury, democratic, lifestyle fashion house,” as Mr. de Boni stated. Ultimately, the Armani vision is one of “timeless and natural elegance.”
Mr. de Boni briefly noted the history of the company. Mr. Armani was 32 years old when he designed for the first time. He was 41 years old when he started the company. Mr. de Boni also explained that Mr. Armani is a designer of many firsts. For example, he was the first designer to invent the unstructured jacket and not use fur. The company does not have a fur license and they only use rabbit or leather. Additionally, Mr. Armani was the first designer to show a gown with ballet flats. In the end, Mr. de Boni credits the success of Armani to Mr. Armani being true to himself throughout the years and establishing a great team from the beginning.