Giordano chairman sees tremendous retail growth in region; focus remains on quality

On a recent visit to the region, Lau toured a number of the new projects under development gauging potential for Giordano's further expansion in various markets.

Ease of operations, expansion of free trade requirements and the strength of local partners were just some of the factors that Lau attributed to Giordano's success in the marketplace.

"The region will probably be able to sustain a reasonably healthy growth rate for consumer retail. With the change in world politics, visitor numbers will continue to increase, as they look for world destinations closer to their own doorsteps. Although prices are going up, consumer spending shows no sign of reducing, as salaries are growing to reflect the increased cost of living. The region is very viable, both in terms of expansion for existing brands and entry for new brands," confirmed Lau.

Giordano opened its first Middle East store at the BurJuman mall in 1993 and now operates 110 stores across nine markets in the region. Lau was steadfast in praising the regional team in their work to establish the brand so strongly.

"I think the team has been very focused, especially on quality; they invest heavily in customer service, are continually talking with customers to gain their perspective. Any merchandise that comes into the shops has to meet the demands of customers here. The team also has good relations with shopping mall management, as well as our local partners. We are very fortunate to have our core management team in place since the beginning and this is something I like to see, people who enjoy their work and feel that they are getting their best opportunities with us. All these ingredients combine to create the best possible outcome," he continued.

The brand is currently looking to new markets, and aims to operate more than 2,000 stores worldwide by 2010. The Indian market, with over one billion consumers will be a huge market, and the brand is currently finalising outlet locations in the country. North America is another potential for the brand, while Giordano is looking at western European on a wholesale possibility, having already entered key markets in Eastern Europe, such as Georgia, Kazakhstan and Romania.

Over the last couple of years, Giordano has been gradually introducing more style elements to its product line-up. While the brand has continued to focus on its core range of simple casuals, such as the dry polo, flat front khakis and denim range, fans of the brand will have noticed the ever-present 'icings', which over the last couple of years have received more prominence in the seasonal collections.

Speaking of the shift, Lau said: "We can be fashionable without being trend related, that is to say we have reinterpreted what casual is and what simplicity means. Every apparel retailer needs a little flavour, and that is what the icings achieve. It also allows our creative team to spread their wings; they can create something that, while trendy has a longer shelf life. For example, can we really say that jeans are casual? Over the last ten years jeans have gone

through a number of evolutions, to the point where a basic pair of jeans will sell less per annum than they have in the past, however jeans with more design elements, trims, washes, etcetera are moving very fast. As with everything in our product range, we are introducing more elements, but we try to make them so that they won't go out of style so quickly."

By the end of 2005, Giordano will operate 115 stores, with another 35 planned for the coming three years. Ishwar Chugani, Executive Director for Giordano Middle East, who has spearheaded Giordano's meteoric expansion in the region since the beginning, is positive about the Middle East's sustainability. Echoing Lau's sentiments, he said: "We enjoy a healthy relationship with our local partner, ETA Group; their local knowledge and healthy position have served as a strong foundation for the Giordano brand. We don't yet see the horizon; there are still plenty of opportunities for us here."