Remarkable to their five-pocket design, the iconic Diesel jeans came under bankruptcy in the United States a few days ago. The brand was the victim of the combined effect of American consumer denial for jeans, and the choice of locations too expensive, while the distribution plunged into crisis.
Diesel USA, however, does not intend to leave the US market, but hopes to take advantage of the protection afforded by Chapter 11 to restructure and revive a smaller, less expensive network of stores, and a new strategy targeting women and networks. social.
Jeans at 200 dollars
The American brand of the Italian brand that dominated the pop culture of the 1990s was profitable until 2008 in the United States, where it was launched in 1995. Positioned as a very high-end brand, it contributed to trivialize the jeans at $ 200 alongside other brands like 7 for All Mankind.
But the brand has not recovered from the cascading consequences of the 2008 crisis on distribution and changes in consumer habits, become addicted to broken prices. As major brands like Gap began a historic decline, the direction of Diesel USA also chose to invest on the counter in prestigious locations, such as Madison Avenue in New York, as sales plummeted.
In total, between 2008 and 2015, the company invested 90 million in premium sites. She is currently the head of 28 stores in the United States for 380 employees, in addition to corners in department stores.
At the same time, Diesel has suffered, like all denim brands, from the dazzling success of sportswear, a trend called "athleisure", such as the craze for yoga pants, including imports to the United States, alongside leggings and others. Elastic trousers, exceeded those of jeans for the first time in 2017.
US group VF Corp, which owns the Lee and Wrangler brands, plans to sell its jeans lines to focus on growing brands, such as Van sneakers and North Face jackets. The only exception to the table: Levi Strauss, who remains the largest seller of jeans in the world, who resists well and prepares his IPO.