Armani will be sold to a giant or remain independent by listing itself

In a recent interview, familyandtrends was asked whether Armani will be bought by the groups named by the founder in his will, e.g. LVMH, EssilorLuxottica, L'Oréal, or whether it will be listed, another option in the will. Perhaps the decision-makers have a credible opinion on the fate, everyone else can try to answer; familyandtrends opted for the stock exchange.

Many entrepreneurs include wishes for the future in their wills, Giorgio Armani was much more precise and punctilious in establishing what should happen after his death: it remains, however, that a sale requires the agreement of the three figures chosen to manage future decisions and when faced with competing and perhaps not always satisfactory offers in some nuance one may have the same opinion.

Two of the three companies mentioned, L'Oréal and EssilorLuxottica, have long-standing relationships with Armani and agreements for the future as licensees but have a very different business model and sector focus. LVMH could add Armani to its collection of brands with a modest financial effort compared to its budget; it would be managing a relatively small, but strongly identifiable brand that is difficult to assimilate with the integration models typical of luxury conglomerates. In the words of Giorgio Armani, already recalled in an earlier familyandtrends, "These French groups want to do everything, I don't understand it... It's a bit ridiculous... Why should I be dominated by one of these giant structures that lack personality?" Now there would be no more King to 'be dominated', but the founding principles for his company written in his will remain: priority to the continuous global development of the 'Armani' name; the search for an essential, modern, elegant and unostentatious style with attention to detail and wearability; attention to innovation, excellence, quality and product refinement; maintenance of an adequate level of investment for the continuous development of the brands.

Moreover, it must be considered that the luxury sector is at an inflection point, after twenty years of continuous growth, the number of consumers is no longer growing and their ability to choose without being guided only by price has improved, even in emerging countries. The two groups that have defined the sector over the last twenty years, LVMH and Kering, are facing a generational transition that will put their creators to the test: Bernard Arnault has extended the age limit to 85 and at 76 has four children in the company; Francois Pinault is 89 and has these days, with Luca De Meo, played the managerial card to get out of a difficult moment for some brands.

If integration into a large group really was the best choice for Armani, why did its founder not pursue it directly? Who better than he could have chosen the ideal partner and accompanied a cohabitation or integration? One could argue that the King of Fashion, the greatest remaining independent designer, could not lose absolute control of his kingdom. Possibly, but another absolute monarch like Enzo Ferrari found the solution: he backed his company at FIAT and agreed in person with Avv. Agnelli to continue reigning where he had an absolute interest in doing so. Thirty-seven years have passed since Enzo's death and Ferrari has grown thriving while remaining faithful to its founder's DNA with a partner heir protecting his technical and moral legacy.