Overview and Introduction

Backgroundbull Was founded by Jimmy Lai in the year 1980bull ldquoGIORDANOrdquo ndash Italian name Named after

a famous New York restaurantbull Started selling casual clothes under Comitex

groupbull Set up its own retail shop in Hongkong in

1983bull Began expansion in Taiwan through a joint-

venture

Backgroundbull Opened its first retail outlet in Singaporebull In 1987 Giordano changed its strategybull Around 1990 Lai had around 200 Giorgano

stores in Mainland China amp Hongkongbull In 1994Lai was under pressure from the

Chinese Govtbull Lai left the company and Peter Lau Kwok

Kuen takes over as Chairman

Management values and style

bull Lai always tried to do things in an innovative waybull Success factor was there sales staffbull Only those candidates were selected who matches the employee profilebullAll the employees had to work in a store for one weekbull Attractive salary respect good incentive helped to retain good employees

Strategies of Giordano

Product strategy

Corporate strategyBusiness strategy

Product Strategy

Retailer of unisex apparel

Customer service as a part of a product

Tags were removed from some of the products Customers were asked to set a price for jeans

Business Strategy

Product positioning

bull ldquoValue-for-moneyrdquo or ldquoquality merchandise at affordable pricesrdquo bull ldquoGio Ladiesrdquo was the product introducedbullMid price positioningbullBluestar exchange(BSE)-budget cautious customerbull During 1990 it tried to reposition its brand

Giordanorsquos key success factors

Using Porterrsquos five forces framework the key success factors can be explained

BARGAINING POWER OF BUYERS = MODERATE 1048774 Low switching costs but no collective bargaining power

RIVALRY AMONG ESTABLISHED FIRMS = HIGH 1048774 Price and non-price competition increasing in intensity slower demand growth

BARGAINING POWER OF SUPPLIERS = LOW 1048774 Suppliers can be replaced easily

RISK OF ENTRY BY POTENTIAL COMPETITORS = MODERATE 1048774 Investments in brand building and retail outlets needed

THREAT OF SUBSTITUTE PRODUCTS = LOW1048774 Lack of substitutes for casual clothes

Competitive Advantages

Excellence in design Fast and market-driven new product developmentExcellent organizational communication Dedication to the needs of customers (eg style fabrics etc)

Excellence in management of operations logistics and information technology systems Effective supply chain management Inventory control distribution Integration of purchasing and selling functions Cost savings from efficient operations are transferred to customers thus delivering ldquovalue-for-moneyrdquo

Excellence in marketing and branding Strong positioning Brand equity for excellent service and ability to deliver ldquovalue-for-

moneyrdquo Consistent execution of advertising and promotion to strengthen

brand image

Excellence in service Excellent customer service Human resource policies (eg selection training and remuneration

of frontline staff) Information systems and performance monitoring (eg regular

evaluations of service standards at store level and mystery shopping)

Good site selection

Giordanorsquos location strategy provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins

Competition

bull Main Competitors

bull Similar strategies but different markets

bull The Themersquos direct Competition

bull Heavy Ads sales Promos attractive prices

bull No question asked exchange policy

bull The Gap ndash Giordano Unisex

Competitors PositioningFIRMS POSITIONING TARGET MARKET

Giordano Value for money ndash Trendy fashion

Unisex casual wear for all ages

The Gap Value for money ndash Trendy fashion

Unisex casual wear for all ages

Espirit More Up market than Giordano

Specialized lines for children and men

Bossini Low Price Unisex apparel- Both young and old

Baleno Value for money ndash Young Age casual wear

Unisex appeal young adults

Hang Ten Value for Money Sporty Lifestyle

Casual Wear and sports wear Teen and young adults

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Strategies of Giordano

Product strategy

Corporate strategyBusiness strategy

Product Strategy

Retailer of unisex apparel

Customer service as a part of a product

Tags were removed from some of the products Customers were asked to set a price for jeans

Business Strategy

Product positioning

bull ldquoValue-for-moneyrdquo or ldquoquality merchandise at affordable pricesrdquo bull ldquoGio Ladiesrdquo was the product introducedbullMid price positioningbullBluestar exchange(BSE)-budget cautious customerbull During 1990 it tried to reposition its brand

Giordanorsquos key success factors

Using Porterrsquos five forces framework the key success factors can be explained

BARGAINING POWER OF BUYERS = MODERATE 1048774 Low switching costs but no collective bargaining power

RIVALRY AMONG ESTABLISHED FIRMS = HIGH 1048774 Price and non-price competition increasing in intensity slower demand growth

BARGAINING POWER OF SUPPLIERS = LOW 1048774 Suppliers can be replaced easily

RISK OF ENTRY BY POTENTIAL COMPETITORS = MODERATE 1048774 Investments in brand building and retail outlets needed

THREAT OF SUBSTITUTE PRODUCTS = LOW1048774 Lack of substitutes for casual clothes

Competitive Advantages

Excellence in design Fast and market-driven new product developmentExcellent organizational communication Dedication to the needs of customers (eg style fabrics etc)

Excellence in management of operations logistics and information technology systems Effective supply chain management Inventory control distribution Integration of purchasing and selling functions Cost savings from efficient operations are transferred to customers thus delivering ldquovalue-for-moneyrdquo

Excellence in marketing and branding Strong positioning Brand equity for excellent service and ability to deliver ldquovalue-for-

moneyrdquo Consistent execution of advertising and promotion to strengthen

brand image

Excellence in service Excellent customer service Human resource policies (eg selection training and remuneration

of frontline staff) Information systems and performance monitoring (eg regular

evaluations of service standards at store level and mystery shopping)

Good site selection

Giordanorsquos location strategy provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins

Competition

bull Main Competitors

bull Similar strategies but different markets

bull The Themersquos direct Competition

bull Heavy Ads sales Promos attractive prices

bull No question asked exchange policy

bull The Gap ndash Giordano Unisex

Competitors PositioningFIRMS POSITIONING TARGET MARKET

Giordano Value for money ndash Trendy fashion

Unisex casual wear for all ages

The Gap Value for money ndash Trendy fashion

Unisex casual wear for all ages

Espirit More Up market than Giordano

Specialized lines for children and men

Bossini Low Price Unisex apparel- Both young and old

Baleno Value for money ndash Young Age casual wear

Unisex appeal young adults

Hang Ten Value for Money Sporty Lifestyle

Casual Wear and sports wear Teen and young adults

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Product Strategy

Retailer of unisex apparel

Customer service as a part of a product

Tags were removed from some of the products Customers were asked to set a price for jeans

Business Strategy

Product positioning

bull ldquoValue-for-moneyrdquo or ldquoquality merchandise at affordable pricesrdquo bull ldquoGio Ladiesrdquo was the product introducedbullMid price positioningbullBluestar exchange(BSE)-budget cautious customerbull During 1990 it tried to reposition its brand

Giordanorsquos key success factors

Using Porterrsquos five forces framework the key success factors can be explained

BARGAINING POWER OF BUYERS = MODERATE 1048774 Low switching costs but no collective bargaining power

RIVALRY AMONG ESTABLISHED FIRMS = HIGH 1048774 Price and non-price competition increasing in intensity slower demand growth

BARGAINING POWER OF SUPPLIERS = LOW 1048774 Suppliers can be replaced easily

RISK OF ENTRY BY POTENTIAL COMPETITORS = MODERATE 1048774 Investments in brand building and retail outlets needed

THREAT OF SUBSTITUTE PRODUCTS = LOW1048774 Lack of substitutes for casual clothes

Competitive Advantages

Excellence in design Fast and market-driven new product developmentExcellent organizational communication Dedication to the needs of customers (eg style fabrics etc)

Excellence in management of operations logistics and information technology systems Effective supply chain management Inventory control distribution Integration of purchasing and selling functions Cost savings from efficient operations are transferred to customers thus delivering ldquovalue-for-moneyrdquo

Excellence in marketing and branding Strong positioning Brand equity for excellent service and ability to deliver ldquovalue-for-

moneyrdquo Consistent execution of advertising and promotion to strengthen

brand image

Excellence in service Excellent customer service Human resource policies (eg selection training and remuneration

of frontline staff) Information systems and performance monitoring (eg regular

evaluations of service standards at store level and mystery shopping)

Good site selection

Giordanorsquos location strategy provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins

Competition

bull Main Competitors

bull Similar strategies but different markets

bull The Themersquos direct Competition

bull Heavy Ads sales Promos attractive prices

bull No question asked exchange policy

bull The Gap ndash Giordano Unisex

Competitors PositioningFIRMS POSITIONING TARGET MARKET

Giordano Value for money ndash Trendy fashion

Unisex casual wear for all ages

The Gap Value for money ndash Trendy fashion

Unisex casual wear for all ages

Espirit More Up market than Giordano

Specialized lines for children and men

Bossini Low Price Unisex apparel- Both young and old

Baleno Value for money ndash Young Age casual wear

Unisex appeal young adults

Hang Ten Value for Money Sporty Lifestyle

Casual Wear and sports wear Teen and young adults

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Business Strategy

Product positioning

bull ldquoValue-for-moneyrdquo or ldquoquality merchandise at affordable pricesrdquo bull ldquoGio Ladiesrdquo was the product introducedbullMid price positioningbullBluestar exchange(BSE)-budget cautious customerbull During 1990 it tried to reposition its brand

Giordanorsquos key success factors

Using Porterrsquos five forces framework the key success factors can be explained

BARGAINING POWER OF BUYERS = MODERATE 1048774 Low switching costs but no collective bargaining power

RIVALRY AMONG ESTABLISHED FIRMS = HIGH 1048774 Price and non-price competition increasing in intensity slower demand growth

BARGAINING POWER OF SUPPLIERS = LOW 1048774 Suppliers can be replaced easily

RISK OF ENTRY BY POTENTIAL COMPETITORS = MODERATE 1048774 Investments in brand building and retail outlets needed

THREAT OF SUBSTITUTE PRODUCTS = LOW1048774 Lack of substitutes for casual clothes

Competitive Advantages

Excellence in design Fast and market-driven new product developmentExcellent organizational communication Dedication to the needs of customers (eg style fabrics etc)

Excellence in management of operations logistics and information technology systems Effective supply chain management Inventory control distribution Integration of purchasing and selling functions Cost savings from efficient operations are transferred to customers thus delivering ldquovalue-for-moneyrdquo

Excellence in marketing and branding Strong positioning Brand equity for excellent service and ability to deliver ldquovalue-for-

moneyrdquo Consistent execution of advertising and promotion to strengthen

brand image

Excellence in service Excellent customer service Human resource policies (eg selection training and remuneration

of frontline staff) Information systems and performance monitoring (eg regular

evaluations of service standards at store level and mystery shopping)

Good site selection

Giordanorsquos location strategy provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins

Competition

bull Main Competitors

bull Similar strategies but different markets

bull The Themersquos direct Competition

bull Heavy Ads sales Promos attractive prices

bull No question asked exchange policy

bull The Gap ndash Giordano Unisex

Competitors PositioningFIRMS POSITIONING TARGET MARKET

Giordano Value for money ndash Trendy fashion

Unisex casual wear for all ages

The Gap Value for money ndash Trendy fashion

Unisex casual wear for all ages

Espirit More Up market than Giordano

Specialized lines for children and men

Bossini Low Price Unisex apparel- Both young and old

Baleno Value for money ndash Young Age casual wear

Unisex appeal young adults

Hang Ten Value for Money Sporty Lifestyle

Casual Wear and sports wear Teen and young adults

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Product positioning

bull ldquoValue-for-moneyrdquo or ldquoquality merchandise at affordable pricesrdquo bull ldquoGio Ladiesrdquo was the product introducedbullMid price positioningbullBluestar exchange(BSE)-budget cautious customerbull During 1990 it tried to reposition its brand

Giordanorsquos key success factors

Using Porterrsquos five forces framework the key success factors can be explained

BARGAINING POWER OF BUYERS = MODERATE 1048774 Low switching costs but no collective bargaining power

RIVALRY AMONG ESTABLISHED FIRMS = HIGH 1048774 Price and non-price competition increasing in intensity slower demand growth

BARGAINING POWER OF SUPPLIERS = LOW 1048774 Suppliers can be replaced easily

RISK OF ENTRY BY POTENTIAL COMPETITORS = MODERATE 1048774 Investments in brand building and retail outlets needed

THREAT OF SUBSTITUTE PRODUCTS = LOW1048774 Lack of substitutes for casual clothes

Competitive Advantages

Excellence in design Fast and market-driven new product developmentExcellent organizational communication Dedication to the needs of customers (eg style fabrics etc)

Excellence in management of operations logistics and information technology systems Effective supply chain management Inventory control distribution Integration of purchasing and selling functions Cost savings from efficient operations are transferred to customers thus delivering ldquovalue-for-moneyrdquo

Excellence in marketing and branding Strong positioning Brand equity for excellent service and ability to deliver ldquovalue-for-

moneyrdquo Consistent execution of advertising and promotion to strengthen

brand image

Excellence in service Excellent customer service Human resource policies (eg selection training and remuneration

of frontline staff) Information systems and performance monitoring (eg regular

evaluations of service standards at store level and mystery shopping)

Good site selection

Giordanorsquos location strategy provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins

Competition

bull Main Competitors

bull Similar strategies but different markets

bull The Themersquos direct Competition

bull Heavy Ads sales Promos attractive prices

bull No question asked exchange policy

bull The Gap ndash Giordano Unisex

Competitors PositioningFIRMS POSITIONING TARGET MARKET

Giordano Value for money ndash Trendy fashion

Unisex casual wear for all ages

The Gap Value for money ndash Trendy fashion

Unisex casual wear for all ages

Espirit More Up market than Giordano

Specialized lines for children and men

Bossini Low Price Unisex apparel- Both young and old

Baleno Value for money ndash Young Age casual wear

Unisex appeal young adults

Hang Ten Value for Money Sporty Lifestyle

Casual Wear and sports wear Teen and young adults

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Giordanorsquos key success factors

Using Porterrsquos five forces framework the key success factors can be explained

BARGAINING POWER OF BUYERS = MODERATE 1048774 Low switching costs but no collective bargaining power

RIVALRY AMONG ESTABLISHED FIRMS = HIGH 1048774 Price and non-price competition increasing in intensity slower demand growth

BARGAINING POWER OF SUPPLIERS = LOW 1048774 Suppliers can be replaced easily

RISK OF ENTRY BY POTENTIAL COMPETITORS = MODERATE 1048774 Investments in brand building and retail outlets needed

THREAT OF SUBSTITUTE PRODUCTS = LOW1048774 Lack of substitutes for casual clothes

Competitive Advantages

Excellence in design Fast and market-driven new product developmentExcellent organizational communication Dedication to the needs of customers (eg style fabrics etc)

Excellence in management of operations logistics and information technology systems Effective supply chain management Inventory control distribution Integration of purchasing and selling functions Cost savings from efficient operations are transferred to customers thus delivering ldquovalue-for-moneyrdquo

Excellence in marketing and branding Strong positioning Brand equity for excellent service and ability to deliver ldquovalue-for-

moneyrdquo Consistent execution of advertising and promotion to strengthen

brand image

Excellence in service Excellent customer service Human resource policies (eg selection training and remuneration

of frontline staff) Information systems and performance monitoring (eg regular

evaluations of service standards at store level and mystery shopping)

Good site selection

Giordanorsquos location strategy provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins

Competition

bull Main Competitors

bull Similar strategies but different markets

bull The Themersquos direct Competition

bull Heavy Ads sales Promos attractive prices

bull No question asked exchange policy

bull The Gap ndash Giordano Unisex

Competitors PositioningFIRMS POSITIONING TARGET MARKET

Giordano Value for money ndash Trendy fashion

Unisex casual wear for all ages

The Gap Value for money ndash Trendy fashion

Unisex casual wear for all ages

Espirit More Up market than Giordano

Specialized lines for children and men

Bossini Low Price Unisex apparel- Both young and old

Baleno Value for money ndash Young Age casual wear

Unisex appeal young adults

Hang Ten Value for Money Sporty Lifestyle

Casual Wear and sports wear Teen and young adults

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

BARGAINING POWER OF BUYERS = MODERATE 1048774 Low switching costs but no collective bargaining power

RIVALRY AMONG ESTABLISHED FIRMS = HIGH 1048774 Price and non-price competition increasing in intensity slower demand growth

BARGAINING POWER OF SUPPLIERS = LOW 1048774 Suppliers can be replaced easily

RISK OF ENTRY BY POTENTIAL COMPETITORS = MODERATE 1048774 Investments in brand building and retail outlets needed

THREAT OF SUBSTITUTE PRODUCTS = LOW1048774 Lack of substitutes for casual clothes

Competitive Advantages

Excellence in design Fast and market-driven new product developmentExcellent organizational communication Dedication to the needs of customers (eg style fabrics etc)

Excellence in management of operations logistics and information technology systems Effective supply chain management Inventory control distribution Integration of purchasing and selling functions Cost savings from efficient operations are transferred to customers thus delivering ldquovalue-for-moneyrdquo

Excellence in marketing and branding Strong positioning Brand equity for excellent service and ability to deliver ldquovalue-for-

moneyrdquo Consistent execution of advertising and promotion to strengthen

brand image

Excellence in service Excellent customer service Human resource policies (eg selection training and remuneration

of frontline staff) Information systems and performance monitoring (eg regular

evaluations of service standards at store level and mystery shopping)

Good site selection

Giordanorsquos location strategy provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins

Competition

bull Main Competitors

bull Similar strategies but different markets

bull The Themersquos direct Competition

bull Heavy Ads sales Promos attractive prices

bull No question asked exchange policy

bull The Gap ndash Giordano Unisex

Competitors PositioningFIRMS POSITIONING TARGET MARKET

Giordano Value for money ndash Trendy fashion

Unisex casual wear for all ages

The Gap Value for money ndash Trendy fashion

Unisex casual wear for all ages

Espirit More Up market than Giordano

Specialized lines for children and men

Bossini Low Price Unisex apparel- Both young and old

Baleno Value for money ndash Young Age casual wear

Unisex appeal young adults

Hang Ten Value for Money Sporty Lifestyle

Casual Wear and sports wear Teen and young adults

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Competitive Advantages

Excellence in design Fast and market-driven new product developmentExcellent organizational communication Dedication to the needs of customers (eg style fabrics etc)

Excellence in management of operations logistics and information technology systems Effective supply chain management Inventory control distribution Integration of purchasing and selling functions Cost savings from efficient operations are transferred to customers thus delivering ldquovalue-for-moneyrdquo

Excellence in marketing and branding Strong positioning Brand equity for excellent service and ability to deliver ldquovalue-for-

moneyrdquo Consistent execution of advertising and promotion to strengthen

brand image

Excellence in service Excellent customer service Human resource policies (eg selection training and remuneration

of frontline staff) Information systems and performance monitoring (eg regular

evaluations of service standards at store level and mystery shopping)

Good site selection

Giordanorsquos location strategy provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins

Competition

bull Main Competitors

bull Similar strategies but different markets

bull The Themersquos direct Competition

bull Heavy Ads sales Promos attractive prices

bull No question asked exchange policy

bull The Gap ndash Giordano Unisex

Competitors PositioningFIRMS POSITIONING TARGET MARKET

Giordano Value for money ndash Trendy fashion

Unisex casual wear for all ages

The Gap Value for money ndash Trendy fashion

Unisex casual wear for all ages

Espirit More Up market than Giordano

Specialized lines for children and men

Bossini Low Price Unisex apparel- Both young and old

Baleno Value for money ndash Young Age casual wear

Unisex appeal young adults

Hang Ten Value for Money Sporty Lifestyle

Casual Wear and sports wear Teen and young adults

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Excellence in marketing and branding Strong positioning Brand equity for excellent service and ability to deliver ldquovalue-for-

moneyrdquo Consistent execution of advertising and promotion to strengthen

brand image

Excellence in service Excellent customer service Human resource policies (eg selection training and remuneration

of frontline staff) Information systems and performance monitoring (eg regular

evaluations of service standards at store level and mystery shopping)

Good site selection

Giordanorsquos location strategy provides a competitive advantage because of its direct impact on ability to generate high volume customer traffic while keeping low margins

Competition

bull Main Competitors

bull Similar strategies but different markets

bull The Themersquos direct Competition

bull Heavy Ads sales Promos attractive prices

bull No question asked exchange policy

bull The Gap ndash Giordano Unisex

Competitors PositioningFIRMS POSITIONING TARGET MARKET

Giordano Value for money ndash Trendy fashion

Unisex casual wear for all ages

The Gap Value for money ndash Trendy fashion

Unisex casual wear for all ages

Espirit More Up market than Giordano

Specialized lines for children and men

Bossini Low Price Unisex apparel- Both young and old

Baleno Value for money ndash Young Age casual wear

Unisex appeal young adults

Hang Ten Value for Money Sporty Lifestyle

Casual Wear and sports wear Teen and young adults

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Competition

bull Main Competitors

bull Similar strategies but different markets

bull The Themersquos direct Competition

bull Heavy Ads sales Promos attractive prices

bull No question asked exchange policy

bull The Gap ndash Giordano Unisex

Competitors PositioningFIRMS POSITIONING TARGET MARKET

Giordano Value for money ndash Trendy fashion

Unisex casual wear for all ages

The Gap Value for money ndash Trendy fashion

Unisex casual wear for all ages

Espirit More Up market than Giordano

Specialized lines for children and men

Bossini Low Price Unisex apparel- Both young and old

Baleno Value for money ndash Young Age casual wear

Unisex appeal young adults

Hang Ten Value for Money Sporty Lifestyle

Casual Wear and sports wear Teen and young adults

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Competitors PositioningFIRMS POSITIONING TARGET MARKET

Giordano Value for money ndash Trendy fashion

Unisex casual wear for all ages

The Gap Value for money ndash Trendy fashion

Unisex casual wear for all ages

Espirit More Up market than Giordano

Specialized lines for children and men

Bossini Low Price Unisex apparel- Both young and old

Baleno Value for money ndash Young Age casual wear

Unisex appeal young adults

Hang Ten Value for Money Sporty Lifestyle

Casual Wear and sports wear Teen and young adults

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Giordanorsquos growth strategy

Domestic Market

Market saturated

Intense competition

Initial success

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

International expansion

Established store in China Malaysia Singapore Taiwan Japan Korea Saudi Arabia India etc

Different Strategies in different market Slowdown due to Asian crises SARS and Iraq war Expansion beyond Asia

Australia North America Europe Middle East

Network of over 2000 stores in 30 countries

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Future View

opportunities

Challanges

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

AWARDS Awards Year

The fourth Hong Kong Awards for services 2000

Grand Award ( Giordano International) 2002

Grand Award ( Giordano ladies) 2002

Business to Consumer ServicesSuppliers Award

2002

Dubai Services Excellence Scheme Award 2003

Hong Kong Super Brands Award 2004

Top Service Award( 9th time) 2004

Most Innovative Company by Wall Street Journal Asia 2007

Dubai Services (excellence performance award)-3rd time consecutively

2008

Hong Kong Corporate Governance Excellence Award 2008

Best Services Performance Brand for Excellence in customer Care 2009

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

ANALYSIS OF FINANCIAL DATAPARTICULARS 2008 2007 2006 2005 2004

Turnover( HK$ Millions)

5048 4950 4372 4413 4003

COST

Operating Profit(HK$ Millions)

325 384 376 518 491

Operating Profit Margin 64 78 86 117 123

Profit Available To Shareholders( HK$ Millions)

311 295 205 406 387

Return On Sales 62 60 47 92 97

Earning Per Share(HK$) 2080 1980 1380 2750 2670

Inventory Turnover Ratio 23 33 35 31 30

Current Ratio 23 19 21 26 24

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Data related to stores

DATA RELATED TO STORES

PARTICULARS 2008 2007 2006 2005 2004

Directly Managed

Number Of Stores 1036 1000 962 914 811

Retail Floor Area(In 000rsquos of sq ft)

1046 995 957 918 846

Comparable Store Sales (2) 2 (3) (1) 7

Total Stores 1970 1895 1767 1694 1585

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

Any Questionshellip

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26

THANK YOU

• Slide 1
• Slide 2
• Slide 3
• Background
• Background (2)
• Management values and style
• Strategies of Giordano
• Product Strategy
• Slide 9
• Product positioning
• Giordanorsquos key success factors
• Slide 13
• Competitive Advantages
• Slide 15
• Competition
• Competitors Positioning
• Slide 18
• Giordanorsquos growth strategy
• International expansion
• Future View
• AWARDS
• ANALYSIS OF FINANCIAL DATA
• Data related to stores
• Any Questionshellip
• Slide 26