Italian luxury group Giorgio Armani group sales fell five per cent in 2016. Group revenues fell in 2016, squeezing margins compared to the previous three years. Net profit rose due to cost control. The dip in company revenues has been attributed to macro and geopolitical concerns and also a general change in purchasing behavior and attitudes.

Armani was an early mover into luxury e-commerce in China but was slow to embrace social media. From mid September it will have separate dedicated accounts on Facebook, Instagram and Twitter for Giorgio Armani, Emporio Armani and Armani Exchange.

Armani — like Ralph Lauren — is facing structural challenges of being a fashion and ready to wear brand. There has been an increase in competition in the last decades from mid priced brands. At the top end designer brands are losing out in terms of brand appeal to accessories brands as they have much lower control of their distribution.

The global luxury industry is in the throes of adapting to changes in shopping behavior brought about by social media and the internet. In future online sales will have the highest growth of any retail channel in the sector. The luxury market is set to grow two to four per cent in 2017.