Armani to target China's middle class shoppers (China)

After long catering to China's richest shoppers, Giorgio Armani SpA is looking to the country's middle class to help carry the fashion house through potentially slowing growth in the luxury sector, reported The Wall Street Journal.

Armani plans in the next three years to open 80 to 100 stores in China's mainland, adding to the Italian company's current 289 and pushing further into China's smaller cities, said Fabio Mancone, director of licensing and communications.

New stores will include the company's namesake Giorgio Armani and outlets such as Armani Collezioni and Armani Jeans, which sell women's denims for 1,500 yuan, or $236, that are meant to be more accessible to China's ballooning middle class than the company's evening gowns, priced at 25,000 yuan.

"This is a company that is very accessible to a large number of Chinese people," Mr. Mancone said. "We have a wide offering that will continue to grow and protect us in case of a slowdown in China."

Armani has been introducing more stores such as Armani Collezioni in China in recent years to appeal to the middle class. The company's sales rose 45% in 2011 from a year earlier, Mr. Mancone said, declining to offer further financial details. "It will be hard to beat that, but we can hope to match it," he said.

Armani says it is also increasing its spending on marketing, boosting its ad campaigns and online efforts to play up the company's history, as many Chinese consumers are drawn to Italian brands. It splurged on a fashion event in Beijing on Thursday, bringing in international stars such as singers Tina Turner and Mary J. Blige and Chinese actor Fan Bingbing to draw attention to its fall and winter lines.