RETAILING MANAGEMENT PRACTICES

Retailing Management Practices of Giordano International

Name

Student ID

Date

1
RETAILING MANAGEMENT PRACTICES

Table of Contents
Introduction 3

Background of the Study 3

Company Profile 4

Objectives of the Study 5

Factors Impacting the Strategic Plan 5

Merchandising Management 7

Direct Competitors 7

Customer Buying Behaviour 8

Market Segmentation 9

Retail Communication Mix 10

SWOT Analysis 10

Recommendations 11
References 12

Introduction

A retail business sells small quantities of goods and services to customers in-store or online.
Apparel stores, drug stores, and grocery stores are examples of retail stores (“What is Retail

2
RETAILING MANAGEMENT PRACTICES

Business: Types and Ideas,” 2022). Retailers provide consumers with global access to a wide
range of products and services. The retail industry contributes to the country's economy and
creates new jobs (“What is Retail Business: Types and Ideas,” 2022).

Sellers, called retailers, sell in limited quantities requested by customers. Consumers buy
products from retailers at the maximum achievable price for that product, called the maximum
retail price (Lapaas Team, 2020).

A retailer might be a regular shopkeeper or the proprietor of a major retail chain of stores. A
small store sells goods at their MRP, whereas large retail chain companies can offer discounts
because of exceedingly increased sales (Lapaas Team, 2020).

Management is the method of connecting people together on a shared platform and directing
them to work as one unit to achieve an organization's goals and objectives. Management is
necessary in all facets of life and is an essential component of all enterprises (Juneja, 2022).

Retail management refers to the many operations that assist customers in obtaining the wanted
goods from retail businesses for their end use (Juneja, 2022). It is one of the recent branches of
sales management (“What is retail management?,” n.d.). Retail management encompasses all of
the steps necessary to lure people into the store and meet their purchasing needs (Juneja, 2022).
It is primarily concerned with improving the customer's experience by employing various tactics
to generate every stimulus available for a purchase. Retail managers focus on creating an
engaging environment by using color, variety, sizes, room temperature, shelve height and width,
product positioning or bundle offerings, among many other methods to set the best stage for
more sales to occur. Retail management must also address the issue of availability (“What is
retail management?,” n.d.).

Background of the Study

The researcher chose Giordano International because they now rank among the top five apparel
shops in the Arab countries. The retail mix of comfortable and smart casuals by the brand has
proven successful for all demographic groups and nationalities, exhibiting the brand's global
appeal. They are known as the embodiment of modern living choices, sophistication in design,
and substantial quality. The company's absolute commitment to superb service, excellent quality,

3
RETAILING MANAGEMENT PRACTICES

and amazing value has enabled it to properly accomplish its numerous market and multiple
marketing plan (“Company info,” 2022).

Giordano's brand concept is contemporary minimalism and fashion, where less is more, and a
style that highlights and accentuates an individual's authentic self though modern, classic, and
timeless clothing. Giordano has created a practical approach to apparel retailing in a business
that is continuously adapting to shifting trends that lead in growing manufacturing costs. At the
heart of the Giordano system is being completely customer-centric. Information, speed and
simplicity are the key factors that drive their entire operation (“Company info,” 2022).

Company Profile

Giordano International, founded by Jimmy Lai in Hong Kong in 1981, has grown to become one
of the world's largest international retailers of men's, women's, and children's clothing and
accessories. By ceaselessly focusing on its five corporate business values of Quality, Knowledge,
Innovation, Service, and Simplicity, the brand has grown from its single Hong Kong store in
1981 to the existing network of more than 2,100 stores and counters from over 30 countries in
Greater China, Southeast Asia, South Korea, the Gulf Cooperative Council, India, Africa, and
Australia (“Company info,” 2022).

Giordano’s international achievement story has been featured as a case study at the Harvard

Business School (“Company info,” 2022). In addition, the company has gained international
acclaim for its dedication to company management.

Giordano’s Vision is “To be the Biggest and the Best World Brand in Apparel Retailing”, while
their Mission is to “To Make People Feel Good and Look Great” (“Company info,” 2022).

Giordano is dedicated to being an efficient and accountable corporate citizen. This means that
they are devoted to providing quality products and services to its consumers while also
maintaining a strong and consistent financial results for its shareholders. They are also dedicated
to making a positive difference in the societies where it does business. They aim to accomplish
this by donating to philanthropic organizations and causes, ensuring that the employees who
make their items are treated with dignity and respect, and always attaining their goals using
ecologically sustainable means (“Company info,” 2022).

4
RETAILING MANAGEMENT PRACTICES

Giordano's Statement of Social Responsibility is a straightforward and brief statement of its

values, expectations, and intentions. The statement serves as the framework for monitoring and
improving its performance while keeping developments in local ordinances and regulations,
trading practices, and vulnerability assessments in mind (“Company info,” 2022).

Objectives of the Study

The objective of this study is to evaluate Giordano International’s retail management practices in
the United Arab Emirates and to give further recommendations on how they can improve their
business strategy.

Factors Impacting the Strategic Plan

Products

Giordano Multinational Limited is a Hong Kong-based international retailer of clothing and

accessories for men, women, and children. The company has developed from its conventional
brand position to a more refined and premium character over time. They continue to offer
apparel fundamentals that are current and adapt to what is happening in the domains of fabric
performance, design, and culture. Giordano has multiple brands: Giordano Men and Women,
Giordano Junior, Giordano Ladies, G-motion, BSX, Beau Monde, Lowe Alpine, and
GIORDANO Timewear, GIORDANO Travelgear, GIORDANO eyewear, CONCEPTS ONE,
and many more (“Company info,” 2022).

Ownership

Giordano International is a chain store because it has multiple locations under the same
ownership. These stores have multiple locations and sell the same product range in each location.

Stores

Giordano International has both physical and online stores.

Advertising and Marketing Strategies

Giordano has always been at the forefront of innovative marketing and advertising technology.
Creativity and difference are the key and Giordano seeks at all times to provide something fresh
to the region (“Company info,” 2022).

5
RETAILING MANAGEMENT PRACTICES

The company's most powerful marketing strategy is its storefronts, which are strategically
positioned in most malls, residential neighbourhoods, and commercial districts to be
conveniently accessible to its clients (“Company info,” 2022). While the company uses
traditional marketing and advertising methods, the stores have become one of the most potent
tools for communicating and interacting directly with customers. Well-designed stores,
imaginative displays, effective visual merchandising, and retail ambience all contribute to a good
shopping experience and brand attraction (“Company info,” 2022).

The company website is utilized efficiently to inform clients about new items, seasonal
promotions, discounts, and other activities. Mailers and newsletters are distributed to maintain
constant contact with customers. Meticulous planning guarantees that all commercial
communication strategies are matched to represent the company in the marketplace consistently
(“Company info,” 2022).

Channels and Systems

The brand has a very sophisticated and real-time retail system that connects all of its outlets
worldwide. The system was created in-house and is completely customized to ensure that the
brand has the information it needs for purchasing, sales, and other essential operations. This
allows the company to make informed judgments about inventory, consumer profiles, and needs.
The technology allows the sales and purchasing teams to check stock, sales, and other pertinent
information for any of its locations or markets in real time (“Company info,” 2022). As
appropriate, relevant reports can be provided to assist the management team in planning and
implementing efficiently (“Company info,” 2022).

Customers are kept up to date with the brand's products and services via personal phone calls,
regular SMS, emails, newsletters, and HTMLs. This also allows the company to receive input
from its clients, which is essential for our development and guarantees that we give what the
customer requires (“Company info,” 2022).

Giordano International also has an inventory management system that connects all of its retail
outlets and markets. In the event of deviations from established standards, corrective action can
be taken immediately, ensuring optimal use of resources locally and globally (“Company info,”
2022).

6
RETAILING MANAGEMENT PRACTICES

Locations

Giordano International’s establishments range in size from 1000 to 2000 square feet on average.
In addition, the brand has large format/flagship stores of over 7,500 square feet in strategic areas.
The objective is to choose accessible and efficient sites so that Giordano stores are easily
accessible to all clients (“Company info,” 2022). Their headquarters are located at the Tin On
Industrial Building in Cheung Sha Wan, Kowloon.

Giordano Middle East FZE (Free Zone Establishment) was established in 1993 as a 100 percent
subsidiary of Giordano International and offers logistics, management, and great assistance to
Giordano's franchise partners across the region, as well as being responsible for Giordano's
franchising and expansion globally.

Merchandising Management

Giordano's styling constantly centred around what is current, vital and functional. The aesthetic
is casual, and the items can be readily combined and matched to suit any event, mood, or
location. Their product development team is constantly working on product innovation in order
to give product distinctiveness and increased value to customers. There is a continual innovation
cycle that takes market and customer needs into account (“Company info,” 2022).

Direct Competitors

H&M

H&M is renowned for offering the newest styles at competitive prices all around the world.
H&M, which was established in Stockholm, Sweden, in 1947, still rules the global market for
inexpensive clothing. According to their website, H&M has 4,664 stores worldwide as of August
2022. The ability of H&M's suppliers to get the fabric at competitive prices enables them to sell
their items for a fraction of what other retail stores charge. While H&M reigns supreme in terms
of cost and style, they frequently face setbacks and criticism for the calibre of the fabric and
craftsmanship. With its advantages in technology, manpower, and international sourcing, H&M
can update their inventory bimonthly and provide the high-end technological element of an
application and website for marketing.

UNIQLO

7
RETAILING MANAGEMENT PRACTICES

UNIQLO, which was originally established in Yamaguchi, Japan in 1949 as a textile business, is
now a global leader in apparel. With over 1000 outlets worldwide, it is already a recognized
global brand. Since the company's founding in 1949, it has been redefining apparel with a
constant focus on quality and fabrics. According to their website, H&M has 3,549 stores
worldwide as of May 2022. The demographic group that is always up to date with the newest
trends may not be drawn to Uniqlo's apparel since it has more of an emphasis on simplicity than
on fashion, however, with a broad selection of items that appeal to a sizable target demographic,
Uniqlo has a huge pool of prospective customers and a high volume of sales.

Customer Buying Behaviour

When considering a purchase, customers are surrounded by four key factors: products, prices,
promotions and distribution channels. Shopping in a physical store is not the same as shopping
online, nor is shopping on a website or mobile app. There are certain factors in e-commerce that
can determine why a user continue or not continue to buy something (“What are the 5 factors
influencing consumer behavior?,” n.d.).

Psychological Factors

Human psychology is an important determinant of consumer behaviour. These factors are

difficult to measure, but powerful enough to influence purchasing decisions. Examples of these
factors are motivation, perception, learning, attitude, and beliefs (“What are the 5 factors
influencing consumer behavior?,” n.d.).

Social Factors

Humans are social beings who are surrounded by numerous individuals who impact their
purchasing habits. Humans want to emulate other humans and also want to be socially
acceptable. As a result, their purchasing behaviour is impacted by others around them. These are
referred to as social factors. Among the social factors are family, reference groups, roles and
status (“What are the 5 factors influencing consumer behavior?,” n.d.).

Cultural Factors

A group of people is associated with a set of values and ideologies that belong to a particular
community. When a person is from a particular community, their behaviour is greatly influenced

8
RETAILING MANAGEMENT PRACTICES

by the culture of that particular community. Examples of these factors are social class, culture,
and subculture (“What are the 5 factors influencing consumer behavior?,” n.d.).

Personal Factors

Consumers' personal factors influence their buying behaviour. These personal factors vary from
person to person, creating different perceptions and consumption patterns. Examples of personal
factors are age, occupation, income, and lifestyle (“What are the 5 factors influencing consumer
behavior?,” n.d.).

Economic Factors

Consumer buying habits and purchasing decisions are highly influenced by the economic
conditions of countries and markets. A prosperous country has a stronger economy, more money
in the market, and more purchasing power for consumers. When consumers experience a positive
economic environment, they become more confident in spending money to purchase products.
Meanwhile, the economic slowdown reflects markets struggling with unemployment and
declining purchasing power. Economic factors have a significant impact on consumer purchasing
decisions. Examples of these factors are personal income, family income, assets, and savings
(“What are the 5 factors influencing consumer behavior?,” n.d.).

Market Segmentation

Marketing segmentation is the process of forming customer groups based on common behaviour
and consumption patterns. In fact, customers are grouped by demographic, psychological,
behavioural, and geographic similarities. these four segments are divided into subcategories to
optimize the marketing strategy (Lowe, 2022).

Retail Communication Mix

Communication is an essential component of a retailer's marketing strategy. Communication is

mostly utilized to tell customers about the retailer, the product, and the services (Rao, 2010).
Retail communication has progressed from the days when the shopkeeper was the only one who
interacted with customers. Consumers may now connect with and reach out to organizations.
Toll-free lines, for example, are provided by merchants for consumer complaints and inquiries.

9
RETAILING MANAGEMENT PRACTICES

Another example is the Contact Us feature on many companies' websites (Rao, 2010). Every
brand encounter is thought to leave a lasting impression that can either increase or diminish the
customer's opinion of the firm. For communication, the merchant can utilize a variety of
platforms and channels (Rao, 2010). The most often used tools are:

1) Advertising

2) Sales Promotion

3) Public Relations

4) Personal Selling

5) Direct Marketing

SWOT Analysis

Strengths Weaknesses
Well-known brand High prices of apparels and
worldwide accessories
Wide range of products High rental costs
Opportunities Threats
Retail market growth in Increasing competition
emerging markets from brick and mortar and
Rising acceptance of online competitors
foreign label products Cheaper apparel stores

Recommendations

Giordano International must continue to focus on customer acquisition. Customer acquisition

requires more than just turning requests into transactions. Establishing customer loyalty and
repeat business is one of the main customer acquisition goals for businesses, and the obvious
benefit lies in the obvious revenue it generates. However, it can also act as a marketing tactic in
itself, with loyal consumers driving business through positive word of mouth (Superb., 2020).

10
RETAILING MANAGEMENT PRACTICES

For example, when it comes to attracting clients in the apparel industry, you can choose
knowledgeable bloggers who can pay dividends. Reputable fashion bloggers post what to wear
and forecast trends for the next season. A strong customer base and track record of repeat
business can make the business more attractive to advertisers and sellers looking to sell the
products, in addition to the direct benefits of increased revenue. To maintain the long-term
viability of the company, a strong customer acquisition plan ensures a steady supply of
customers (Superb., 2020).

References

Company info. Giordano Middle East. (2022, January 13). Retrieved December 14, 2022, from
https://www.giordano-me.com/about-us/company-info/

11
RETAILING MANAGEMENT PRACTICES

Juneja, P. (2022). Retail management - meaning and its need. Management Study Guide.
Retrieved December 14, 2022, from https://managementstudyguide.com/retail-
management.htm

Lapaas Team. (2020, August 21). Retail management - meaning, strategies, importance, and
career. Lapaas. Retrieved December 14, 2022, from https://lapaas.com/retail-management-
meaning-strategies-importance-and-career/

Lowe, C. (2022, August 4). What is marketing segmentation and how you can create one.
Insider. Retrieved December 14, 2022, from https://useinsider.com/what-is-marketing-
segmentation/

Rao, S. R. (2010, August 2). The Retail Communication Mix. Retrieved December 14, 2022,
from https://www.citeman.com/9829-the-retail-communication-mix.html

Superb. (2020, June 16). Customer acquisition strategy for fashion brands. Retrieved from
Superb.: https://wearesuperb.com/customer-acquisition-strategy-for-fashion-brands/

What are the 5 factors influencing consumer behavior? Clootrack. (n.d.). Retrieved December
14, 2022, from https://www.clootrack.com/knowledge_base/major-factors-influencing-
consumer-behavior

What is Retail Business: Types and Ideas. SendPulse. (2022, September 29). Retrieved
December 14, 2022, from https://sendpulse.com/support/glossary/retail-business

What is retail management? My Accounting Course. (n.d.). Retrieved December 14, 2022, from
https://www.myaccountingcourse.com/accounting-dictionary/retail-management

12