Diesel (clothing company)
| Diesel | |
|---|---|
| Company type | Private |
| Company slogan | For successful living. |
| Foundation | Molvena, Italy (1978) |
| Location | Molvena, Italy |
| Key people | Renzo Rosso, owner and CEO Antonio Sperati Ruffoni, CFO Craig Leavitt, EVP Sales and Retail |
| Num employees | 1,300 (2004) |
| Industry | Fashion |
| Products | Clothing and Accessories |
| Revenue | 680 U$ Millions per year |
| Homepage | www.diesel.com |
Diesel SpA simply known as "Diesel" is an Italian based designer clothing company which produces unusual yet often innovative apparel for men and women between 18 and 35 years old. Diesel also creates a kids and sportswear line.
The company was founded by Renzo Rosso and his former boss Adriano Goldschmied (of the increasingly popular AG Jeans company) in 1978. Diesel's milestone years include 1985 (Renzo's complete acquisition of the company), 1991 (beginning of the international marketing strategy) and 1996 (opening of Diesel's first flagship store on New York City's Lexington Avenue).
The term Diesel was reportedly used because it is pronounced the same in every major language.
Most of Diesel's current production is outsourced, to small and medium-sized companies. Production of denim jeans is based mainly in Italy. All international logistics operations (wholesale and retail) are centrally managed and carefully controlled.
Today Diesel is a global concern. The headquarters are located in Molvena, in the north-eastern part of Italy, where the company manages 17 subsidiaries across Europe, Asia and the Americas.
The company owns more than 200 retail outlets worldwide and also wholesales to better retail boutiques and department stores, and has more than 3,500 employees. Annual sales are approximately € 1.2 Billion according to 2005 figures.
"Premium" Denim and Accessory Licensing
Denim sales make up the core of the brand's business and many fashionistas and industry analysts agree that Diesel helped to usher in the craze of "Premium Denim," or specialized jeans that often carry a lofty price beyond 100 US Dollars due to unique and outrageous washing and distressing techniques and treatments. Many experts and savvy consumers argue that the so-called Premium Denim at most apparel firms (sometimes including Diesel) are often given little extra treatment over their non-premium counterparts and wholesale far below their MSRP or retail value. The price gouging is constantly considered to be a side-effect of a major fashion trend pioneered by Diesel.
Brands like Diesel can also be credited with inspiring the founding, or inadvertently fueling the revenue of several other smaller denim-based brands like True Religion, Seven for all Mankind, Chip and Pepper and Paper Denim & Cloth to name a few. There are said to be over 700 denim-based brands in existence to date according to fashion industry trade-magazine Women's Wear Daily [WWD].
The Diesel name is licensed (see Licensing) to other companies to produce footwear, leather goods, eyewear, jewelry, wristwatches produced by major time-piece brand and company Fossil, as well as fragrances (held by mega beauty company L'Oreal), and other accessories for men and women. In February 2007, the company will launch a major intimates and beachwear division for men and women that will be carried in the retail and department stores. The license is held by the US company Mast Industries Inc. who also produces lingerie for Victoria's Secret.
Diesel SpA Marketing
Diesel has attracted press attention with controversial advertising campaigns. The most recent (Fall 2006) dubbed "Highway to Heaven" featuring a not-so-heavenly host of angels in suggestive and provocative scenes. The campaign story was driven by a what-if scenario imagining what would happen if rock 'n' roll types invaded the pearly gates. The campaign was shot by photographer Terry Richardson. Diesel has also backed up the print campaign with Guerrilla Marketing tactics, placing their "angels" in various locales and events around the world. In an effort to bring the campaign full-circle in the minds of the internet-driven generation, mock websites have been set up including The League of Angel Believers Website and FallenWings.org.
In recent years the company has driven its attention to the youth market, by sponsoring several projects such as the Diesel-U-Music Contest or the Diesel Wall artistic programme, or by participating in other actions, such as the 2006 edition of Life Ball, the Sundance Film Festival .
Diesel SpA's Competitors
There are many competitors to Diesel in Europe, however, there are a few that stand out above the rest, virtually following in the exact footsteps of Diesel SpA. These brands include Miss Sixty, Fornarina, Replay Jeans, and Mavi.