With the advanced economies in a tailspin and many a business conglomerate in a shambles as recession drags on, there is an increasing focus on a few companies that thrive despite adversities. It's their resilience to withstand crises and ability to sustain growth that makes them the leading exemplar of successful contemporary businesses. A good case in point is Giordano - an immensely regarded international retail company that is known for its high quality apparel. Why is this so? From its humble beginning as a manufacturer of casual clothing in the 1970s, Giordano has evolved into one of the world's most renowned apparel retail brands. It's sales reach $1 billion annually, 10 percent of which come from the Middle East markets. And regardless of economic downturn, the ready-to-wear apparel retail industry is performing well, at least for Giordano. “The last three years are the best for us,” Ishwar Chugani, executive director of Giordano Fashions L.L.C, said. Guided by five corporate values of Quality, Knowledge, Innovation, Service and Simplicity, the company is unequivocally resolved to put them into practice irrespective of the situation. As a result, from a single Hong Kong store in1981, it has now an international network of over 2,000 stores across the Middle East, Asia, Australia, India, Eastern Europe and North America. In Saudi Arabia alone, Giordano has 64 stores and plans to open five new stores this year - one each in Makkah, Madina and Al-Khobar and two in Jeddah. One begins to wonder why despite serious financial straits, Giordano's popularity does not ebb and, on the contrary, its market hold even becomes stronger. The answer lies not only on the strict observance of its five core values, but to “management a la family business,” Chugani said. In a no-holds-barred interview with the Saudi Gazette, he said Giordano stores are run with the hands-on involvement of the franchisee and the Giordano team acting in harmony. He cited the case of Hani Abdulaziz Saab, director general of TAGS Retailers - Giordano's franchisee in Saudi Arabia, in which he and other members of his family are seen manning the stores. Not surprisingly, since 1995, when Giordano and TAGS tied up in the Kingdom, Giordano Fashions has set new trend in casual wear market in all major cities of Saudi Arabia. What's in a family business that makes it tick? Chugani said working in a family business could bring valuable benefits compared to other businesses - from greater trust between staff to increased flexibility. It's in a family business where you can find common values, strong commitment, loyalty and stability, he said. However, he underlines careful management to be able to anticipate problems and come up with solutions before they arise. To avoid these pitfalls, “you should foster an atmosphere in which open discussion is welcomed and concerns can be heard.” The best way of avoiding conflict is to prevent misunderstandings from happening in the first place, he added. “In doing so, we at Giordano are very flexible in our policies,” which also extends to our customers, Chugani said further. Giordano, he said, has a department that attends to the suggestions of customers and listens to their feedback. That why Giordano's reputation is always associated with good value, branding, trust, consistency, availability and accessibility, he pointed out. In the apparel retailing industry, one has to be always stylish, fashionable, and artistic. Yet in Giordano, it also exemplifies simplicity. Though Giordano comes out with some 250 new styles annually, Chugani said it “adopts merchandize mix” policy in which they retain the basic styles which they are originally known for. He revealed that Giordano will “go back to our roots within the next 60 months” while at the same time “further enhancing the added-value to our new products.” He dismissed the idea of competition with other brands, saying that Giordano products “have no comparison … in style, quality and comfort.” Giordano embodies the contemporary lifestyle choices - simplicity in design and quality in substance. Its consistent focus on quality and functionality of its products resulted in introducing innovations such as its wrinkle-free shirts, trousers and dry polo. “It's Giordano's simplicity tempered with modernity that makes a name for itself,” Chugani emphatically said. Nonetheless, amid success and accolades, Giordano never rests on its laurels. It pledges to be a successful and responsible corporate citizen, which means that it is committed to translate into community services the fruits of its success. Giordano is at the forefront of charitable activities as well. It has also vowed to take on a new initiative to contribute to the preservation of the planet Earth by using environmentally friendly and recyclable shopping bags and adopting energy efficient lightning solutions in all their new stores. “Our next step is to use only energy saving lighting in all our stores and expect the transformation to be completed globally by 2011,” Chugani added. And with a family spirit, Giordano ensures that its workers “are treated with fairness and respect,” Chugani remarked. __
