Following the death of fashion legend Giorgio Armani, who kept his company fiercely independent, Fiona Jones explains what could come next for this luxury brand. - REUTERS
00:00Designer Giorgio Armani has left behind an enduring legacy in fashion
00:05and a world-established brand spanning over 50 years.
00:10But his death raises questions about the future of the Italian company he kept fiercely independent.
00:17Armani, who died at 91, was the sole major shareholder of the company
00:21and he maintained a tight rein, both creatively and managerially, until the very end.
00:26Armani's combined flair and business acumen saw the company generate around $2.7 billion in annual turnover.
00:34While profits shrunk during a broader recession, industry experts say the global brand remains extremely attractive.
00:41WWD style director Alex Badia said this is because its identity remains so powerful.
00:46His legacy is so, so strong. His vision is so unique that I don't think they need a new designer face.
00:57They just need to continue the brand, the legacy.
01:01Armani had no children but is survived by members of his family and long-term colleagues who worked closely beside him.
01:08Despite the brand's allure, experts say a deal in the midterm would be unlikely.
01:12Armani drafted new company bylaws due to take effect upon his death.
01:17It outlines governing principles for beneficiaries, including, quote,
01:20a cautious approach to acquisitions.
01:23More clarity on his plans may emerge in the coming weeks, when Armani's will is opened.
01:28The designer set up a foundation in 2016 to guarantee smooth succession and the company's continued independence,
01:35which, he said a year later, would be run by three nominees he designated.
01:39He added, after his death, the foundation would get a larger share of the company, alongside other heirs.
01:46Having voiced his desire for close colleagues and family to take over,
01:50roles that will need to be filled are chairman and CEO.
01:53Picking the right creative structure may be trickier.
01:56Especially, said Badia, due to his high-concept approach to the brand.
02:00The idea that you not only wear Armani, but you eat an Armani plate, you eat Armani chocolates,
02:05you sit in an Armani chair, it's a whole world.
02:09And then the fact that he opened even hotels, that now seems to be the thing to do,
02:14but he did it back then. He was the first.
02:17Armani had a collaborator on both his women's and men's collection,
02:20and experts say that there could be multiple creative leads instead of one visionary.
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