After three decades in the fashion business, Giorgio Armani wants to broaden his image as practical designer for the working woman to include a more eccentric look. Also on the drawing board for Italy's top purveyor of ready-to-wear: a new exclusive perfume called Privé, a younger clientele and a peek at the future of his eponymous house. Here TIME's Kate Betts talks to the designer about why he will never consider an IPO, where he looks for inspiration and what it takes to survive so long in fashion.

THIS SPRING YOU OPENED A FLAGSHIP IN SHANGHAI. WHAT WERE YOUR IMPRESSIONS OF CHINA?

I went to Beijing, Shanghai and Hong Kong. It was a great revelation to see how China is changing, to see the old China next to the new China, and to see the shock for all these Chinese people, especially in Shanghai, to suddenly have these huge, extravagant skyscrapers all around. There is such a contrast between the old and new China that it can be shocking to take it in.

NEXT YEAR IS YOUR 30TH ANNIVERSARY. WHAT HAS BEEN THE BIGGEST CHANGE IN YOUR FASHION CAREER?

Last winter was a turning point for me personally because I started to move away from the typical cliché of the designer who dresses the working woman. I wanted to put more fantasy into my collections. I was scared that it would be too shocking for the buyers and clients, but it worked. Women love Armani, but they are changing. The women who bought Armani in the past still buy it, but more younger women are buying it.

YOU HAVE BEEN TALKING ABOUT RETIRING IN FIVE YEARS. ARE YOU STILL PLANNING TO DO THAT?

I could continue to work for another 10 or 15 years, but I have to prepare the house for the future without me. So I have to examine the possibilities.

HAS THERE BEEN INTEREST FROM LUXURY GROUPS?

Yes, there was Bernard Arnault [at LVMH] and Gucci, [whose former chief] Domenico De Sole wanted to combine his company with Armani. But I said no. There were other proposals too that I didn't accept because the conditions were not clear for me. It was not clear where I would fit in. I had some very interesting proposals. Arnault wanted to combine the houses of Armani and Vuitton, which was interesting because I could have done ready-to-wear for them and they could have done accessories for me. But I could not accept being a minority shareholder after so many years of work.

HAVE YOU CONSIDERED AN IPO?

No. This is such a personal business that you can't have share-holders who question why you have invested #1 million in a runway show. And the stock market is so demanding. If you don't grow 20% every season, the business collapses.

WHO IS THE DESIGNER YOU MOST ADMIRE?

From a creative point of view, it's [John] Galliano, especially for the spectacle. And [Jean Paul] Gaultier has done things that I would love to have done. He has a very strong, sexy spirit. I admire him a lot for that. [Alexander] McQueen is also very inventive, but he can be very hard-edged.

IF YOU COULD CHOOSE, WHO WOULD SUCCEED YOU?

Gaultier, because he does things that are very special, but the complete picture is always elegant. Even a hat, a gesture, is always elegant, and that is modern.

WHAT IS YOUR BIGGEST REGRET?

The lost opportunities for human contact. In the past, maybe I was too hard sometimes. I shut people out because it was necessary for my success. In this business there are so many different elements we have to juggle—the business, the press, the clients. When you mix it all up, sometimes you lose contact with people in the process.

WHAT IS YOUR GREATEST FEAR?

The only thing that really scares me is illness. To be poor is not a problem for me. Even when I was poor I didn't have a problem with it. But illness can take over your life, and it can keep you from doing everything you love.

YOU HAVE MADE A LOT OF CHANGES IN YOUR LIFE RECENTLY. WHAT IS THE ONE CONSTANT?

The way I dress. I will never wear bright colors or pale colors. Only navy blue or black. The rest doesn't work for me.