This article originally appeared in LinkedIn Pulse, authored by Louise Vella.
Introduction
Giorgio Armani passed away this week at the age of 91. The world lost not only a master of understated elegance but also one of the last living legends of Italian fashion’s golden generation. While tributes poured in for his revolutionary designs and the global empire he built, another part of his story deserves equal attention: his meticulous approach to succession planning and legacy protection.
Armani’s plan was not improvised. It was carefully thought through, communicated, and gradually implemented. It ensured that the Armani brand, now a multi-billion-euro powerhouse, would endure seamlessly beyond the lifetime of its founder. For family businesses and entrepreneurs in every sector, Armani’s example provides a valuable case study on how to balance legacy, leadership, independence, and continuity.
Why Succession Planning Matters
Business continuity is one of the greatest risks many companies ignore until it is too late. In family enterprises in particular, founders often shy away from conversations about succession because they are emotionally difficult. Yet the cost of failing to plan is steep: family disputes, unstable leadership, financial disarray, and even the collapse of the enterprise.
Succession planning is the process of identifying, preparing, and transitioning the next generation of leaders. It is not just about replacing a CEO; it is about protecting the culture, reputation, and strategic direction of the business. Armani understood this better than most.
Armani’s Philosophy: A Gradual Transition
In interviews before his passing, Armani described his strategy as a “gradual transition of responsibilities.” Leadership handovers, he believed, should never be abrupt or reactive.
Instead of naming a single heir, Armani quietly prepared his inner circle over many years. Key among them was Pantaleo “Leo” Dell’Orco, a trusted collaborator of decades, along with his nieces Silvana and Roberta Armani and his nephew Andrea Camerana. This team was progressively given more responsibility and visibility, ensuring that decision-making did not rest on Armani alone.
By distributing leadership across a seasoned group rather than pinning it on one untested successor, Armani created resilience. The business was not dependent on a single personality but on a collective that deeply understood his vision.
Protecting Ownership and Governance
Armani also took deliberate steps to safeguard the company’s independence. Unlike many fashion houses that became part of conglomerates such as LVMH or Kering, Armani resisted takeover offers. He maintained control through Giorgio Armani S.p.A., his private holding company.
In 2016, he established the Giorgio Armani Foundation to ensure that the group would remain independent beyond his lifetime. The bylaws explicitly prohibit a stock exchange listing before 2030 and assign different voting rights to block hostile takeovers. This foundation is not just an ownership tool but also a governance structure designed to align leadership with long-term brand integrity.
The lesson here is clear: ownership structures are as critical as leadership choices in succession planning.
Embedding Culture into the Brand
Armani’s succession plan extended beyond governance and management—it was cultural. Armani was not just a designer; he was a curator of lifestyle and values. His clean lines, neutral palettes, and understated elegance became synonymous with Italian sophistication.
To safeguard this identity, Armani institutionalised his design philosophy across every collection, campaign, and store concept. His closest collaborators absorbed this culture by working alongside him for decades, effectively becoming custodians of the “Armani way.”
For family businesses, this highlights the importance of embedding culture so that succession is not just a change of personnel but a true continuation of identity.
Diversification as a Resilience Strategy
Over the years, Armani built an ecosystem that extends well beyond clothing:
Fashion across multiple tiers, from couture to accessible lines.
Hospitality, including Armani Hotels in Milan and Dubai.
Lifestyle brands, such as Armani Casa (home interiors) and Armani Dolci (confectionery).
Licensing, including eyewear and real estate collaborations.
This diversification provides resilience against downturns and strengthens the brand’s reach across multiple dimensions of luxury.
Financial Prudence
Even in challenging times, Armani emphasised reinvestment and discipline. In 2024, the group reported a 5% drop in revenue and a 24% decline in profit, yet Armani doubled down on investment: around €332 million went into store upgrades and bringing e-commerce operations in-house. The company also maintained over €570 million in net cash reserves, highlighting long-term prudence and flexibility.
This approach ensured that the group was not over-leveraged and could maintain independence while continuing to invest in the brand’s future.
Sustainability and Social Responsibility
Armani also embedded ethical and social commitments into his legacy:
In 2016, the brand went fur-free, one of the earliest major fashion houses to do so.
Earlier, Armani had adopted policies around the responsible use of models.
The foundation structure itself reflects ESG principles by prioritising stewardship over short-term profit.
This foresight aligned Armani with the values of younger, socially conscious consumers and long-term investors.
Lessons for Businesses Everywhere
The Armani case provides key lessons for succession and legacy planning:
Start Early – Armani prepared succession gradually, well before it was necessary.
Build a Trusted Inner Circle – He relied on long-time collaborators and family members who understood the brand.
Align Ownership and Governance – Independence was protected through a private structure and foundation.
Preserve Culture – Armani institutionalised his philosophy into the brand DNA.
Balance Finance with Strategy – Strong reserves and reinvestment ensured long-term flexibility.
Embed Values – ESG commitments strengthened relevance across generations.
Conclusion
Succession planning is often viewed as a technical exercise, including documents, appointments, and shareholding adjustments. Giorgio Armani demonstrated it is far more than that: it is about safeguarding the soul of a business.
In his passing, Armani left behind not only timeless designs but also a timeless blueprint for legacy.
For entrepreneurs and family businesses everywhere, Armani’s case is a call to action: succession is not optional. It must be deliberate, structured, and rooted in values—because one day the visionary will be gone, but the business must go on.
Sources
Reuters (2025) – After Armani: what becomes of the fashion empire he built?
Reuters (2025) – After Giorgio Armani, heirs and foundation to steer fashion empire
WSJ (2025) – What’s Next for Giorgio Armani’s Fashion Empire?
AInvest (2025) – Sustainable Luxury: Armani’s Legacy Blueprint Post-2030
AInvest (2025) – Giorgio Armani Navigates Profit Declines
Wikipedia – Giorgio Armani
About the Author
Louise is a seasoned professional with over 25 years of experience in the Corporate Services Provider (CSP) industry. She has supported a wide spectrum of clients—including those from the corporate, private, and public sectors, as well as entrepreneurs—across various aspects of company secretarial work, corporate governance, trustee, directorship services and risk management.
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