Diesel creates selective distribution network
today Sep 16, 2016
Diesel has created the 'Diesel selective distribution network'. The Italian fashion label announced the introduction of a new set of specifications for retailers which handle its products. The brand's management "wishes to ensure that multi-brand retailers selected by Diesel offer a quality service to their customers. (...) The network has been created with the objective of improving the customer's experience, and to make sure that retail outlets and websites featuring Diesel products are consistent with the positioning, high quality and reputation enjoyed by our products." These guidelines will be first implemented in France, before being deployed on the other European markets.
The challenge for which Diesel has thrown down the gauntlet is defending its image and appeal. In this respect, the brand stated that its distribution strategy's evolution forced it "to willingly give up wholesale revenues in the region of €100 million, which were deemed not to fit with the brand's desired marketing positioning."
The brand's management also mentioned that Diesel embarked on what it defined a "worldwide legal plan" to fight against the sale of counterfeit products on the web. Diesel explained how this approach has led to the closing down of 3,346 websites, that 4,000 cease and desist orders were issued and that 19,000 websites were removed from Google. Coincidentally, EU customs officials have confiscated 380,000 Diesel-branded products.
It remains to be seen what kind of impact the creation of this 'selective distribution network' will have on the Italian brand's business.
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