Diesel - redefining fashion for the US
- Company Snapshot & Product Portfolio
- Historical and Strategic Developments
- Industry Outlook
- Marketing & Promotional Strategies
- SWOT Analysis
- Peer Benchmarking & Future Outlook
- Risks, challenges and Limitations
- Corporate Social Responsibility and other initiatives
- Recommendations & Future Research Scope
Diesel has been redefining the world of fashion in the American market for quite sometime now. The entry of Diesel into the United States of America was a bit late when compared to its entry into the other peripheral markets. This can be attributed to the fact that the USA (United States of America) already had some established players in the field of fashion and the market scenario was a bit different when compared to others. Diesel opened its first flagship store in 1996 on Lexington Avenue in New York. The current USA (United States of America) headquarters of Diesel is located at Lexington Avenue in New York. It employs around five hundred and fifty people approximately as of the latest figures. It recorded revenues in tune of 659 million dollars as of the recently concluded financial year. This is an estimated increase of around 16.9 percent as compared to the last fiscal. The bulk of the current revenues came from the recently launched auxiliary products like watches, bags, shoes and other fashion items.
Diesel has been pushing the envelope when it comes to the innovative marketing practices. It does not advertise on any other platforms other than fashion magazines and select retail outlet. This is an integral part of transforming the brand Diesel into a lifestyle, thereby freeing it from the ordinary consumer behaviour. The number of exclusive Diesel outlets is around fifty and the number of retail stores that sell the Diesel product is somewhere around fifteen hundred. Diesel plans to bring the number of retail stores down in order to concentrate a little more on the consumer client relationship.
The marketing strategy of Diesel can be said to be niche, since it tries to create value rather than fighting over already existing fashion norms. This can be closely related to the Blue Ocean Strategy, where the company or entity tries to create value. In terms of the competition, Diesel faces considerable competition from brands like Wrangler, Levis, G star and other smaller players. However, the factor that plays to the advantage of Diesel is that most of the brands are on the wane in terms of the market share.
The pricing strategy can be termed as premium pricing; a Diesel positions itself as a lifestyle product rather than being just a fashion product. Going by the recent trends, it can be safely assumed that Diesel shall break many new grounds in the American market.