Case Study Diesel

Company Background

The company was founded by Renzo Rosso and his former boss Adriano Goldschmied of the AG Jeans company, in 1978. Diesel's milestone years include 1985 Renzo Rosso’s complete acquisition of the company, 1988 the hiring straight out of fashion college of current head designer and Creative Director Wilbert Das, 1991 the beginning of the international marketing strategy and 1996 the opening of Diesel's first flagship store on 's . In February 2007, the company launched a major intimates and beachwear division for men and women that is carried in the retail and department stores. Diesel Black Gold was announced in November 2007. The company has around 2,200 employees in 18 subsidiaries across ,  and the . Its products are available in 5000 retail outlets, of which 300 are Diesel-branded stores. Annual sales were approximately €1.2 billion in 2005, and €1.3 billion in 2009. Revenue is largely derived from  sales, but also extremely successful and influential ranges of accessories and children's wear - Diesel Kid. Production of denim jeans is based mainly in Italy

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Introduction of StyleLab

In 1998 Diesel introduced the new brand StyleLab. Before that the brand portfolio of Diesel had three main product lines. These were D-Diesel, the core business line with a focus on the traditional 5 pockets denim, Diesel Kids and 55DSL, the sportswear collection of Diesel.

With the introduction of StyleLab Diesel was about to up-market. Rosso realized in the 1990s that customers were willing to pay high prices not only for smart clothes, but also for casual wear. Furthermore the dress code in companies and banks became more casual. Rosso saw the opportunity to enter a ...

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