Denim TodaySALES DROP IN DENIMMARKET Analysis of Denim Distribution Channel•Women’s denim have suffered a drop in Women’s Men’ssales from last year.•Overall Increase in the average price in -Speciality stores +1.1% +3%jeans rose by 4.1%, within men’s by 4.7% -Department stores -0.1% +0.9%and women by 3.7% . -Mass merchandisers +6.5% -0.2%•The increases have hardly compensatedfor wholesaler’s higher price and retailers -E-commerce Decline N/A +15.1%expenses. -Factory outlets N/A -17.7%•Consumers having different incomelevels and different tastes. • Last year’s analysis showed a pick up in coloured•Denim have changed from being a denim, especially the upper end of the market.commodity to being in fashion and lostits charm. • Denim has played an important role within the•Consumers are building their wardrobes extreme, Sports lifestyle(riders, snow boarders freein other areas like dresses ,footwear style ski, skate-board and bikers ) most of the newbefore they are going back for a pair of action denim sells from around $100 as high as $400jeans. for protective and advanced models.•Profitability was hindered by high rawmaterial cost(cotton crops) and unitvolume was impacted by price increases.
-2.1% CHANGES IN JEANS SALES IN 2011 DENIM ‘s SALES DOWN FALL NDP GROUP 2011 2010 CHANGEU.S JEANS SALES (000) 13,506,375 $ $13,799,525 -2.1%Women’s 7,793,271 $ $ 8,055,837 -3.3%Men’s 5,713,104$ $5,743,688 -0.5%U.S JEANS UNITS (000) 531,224 565,246 -6.0%Women’s 311,730 334,277 -6.7%Men’s 219,494 230,969 -0.5%AVERAGE RETAIL PRICE $ 25.43 $24.41 4.1%Women’s $25.00 $24.10 3.7%Men’s $26.03 $24.87 4.7%
DENIM FACEBOOK LIKESRANK BRAND LIKES CHANGE 1 LEVIS 11,237,419 198.90% 2 DIESEL 1,837,959 131.30% 3 GUESS 1,836,352 117.40% 4 PEPE JEANS 904,495 N/a 5 G-STAR 766,909 167.50% 6 TRUE RELIGION BRAND JEANS 663,407 120.30% 7 WARNGLER WESTERN 579,485 100.80% 8 MAVI JEANS 472,911 109.50% 9 MISS ME JEANS 436,211 103.60% 10 MISS SIXTY 421,465 68.10% 11 GUESS BY MARCIANO 403,175 70.50% 12 LUCKY BRAND 306,886 85.00%
Denim or non-Denim ?• With high end denim business pressured in recent seasons there’s a dichotomy between companies focused on denim and those who are after non denim fabrics and novelty silhouettes.• Novelty fashion makes up 75% of most of higher end jeans company’s such as Rich & Skinny , Seven for all mankind.• The novelty part of the denim business is what keeps it going, it gives freshness that was never there before, in the past it was just blue jeans –people got bored of that!!!
DIESEL is a Denim Brand“Renzo Rosso equated jeans withfreedom and rebellion leading himto start a jeans brand that embracedvalues such as individuality,irreverence, bravery and freedom,and these values very soontranslated into a lifestyle, we werepioneers in this, we had to fight inthe beginning but today it soundsquiet normal.”“When lifestyle is authentic it can be applied to many categories starting from non denim apparel collection to accessories, fragrances and so on..”
History of Diesel• The company was founded by Renzo Rosso in 1978.• 1985 Renzo Rosso got complete acquisition of the company.• 1991 beginning of the international marketing strategy.• 1996 opening of Diesel’s first flagship store on New York City’s Lexington Avenue.
Diesel Info and Mission “To create an apparel line perfect for individual people who follow their own unique path in life and for those style- makers who express their individuality by the way they dress.”• Innovative brand known for developing new styles, fabrics, manufacturing methods as well as quality control to guarantee outstanding product.• Diesel has stores in 80 countries, with 5000 points of sales, 300 mono brands stores.• The Headquarters are located in Molvena, in the north-eastern part of Italy, where the company manages 12 subsidiaries across Europe, Asia and the Americas. Diesel employs over 1,300 people worldwide.
Target MarketPsychographicFashionable, Have Extra money to spendsignificant on quality fashion clothing,Attracted by Innovation, Hedonistic,Experimental and Independent, Fun loving,energetic and somewhat rebellious.DemographicalAge- 20-35, Men and women, Higher MiddleClass, Early Young Professional.GeographicalPeople living in big metropolitan cities.BehavioralLeisure time oriented consumption, Regularcustomers, Brand Loyal.
Financial Data*The annual turnover is expressed in million euros.
POSITIVE NEGATIVE STRENGTHS WEAKNESSESI • A complete lifestyle brand. • Diesel main product, jeans is somewhatN • exclusiveness strategy ( from 10000 POS expensive.T to 5000). • The sizes of the jeans, for women, do notE • Introducing a new image through OTB apply to all body types. group, instead of rebranding.R • Strong and unique advertising strategyN building an image for the brand, givingA identity to the costumer.L • Diversification in other merchandise. OPPORTUNITIES THREATSE • With new treatments and technology for • Replica products and fake imitationX fabrics we can add value to the products. affects brand image.T • With rising concern in eco-friendliness of • A dip in the demand of jeans can have aE products and stores, Diesel can respond major drop in sales. with promotion campaigns to instill trust. • Fast fashion jean brands raise their sales.R • Diesel can tap emerging retail markets likeN Brasil and Russia to make the most of theA unsaturated markets there.L • Outsourcing some divisions in ‘cheap labour’ countries may help maintain economies of scale.
Rome Store Display Hung Merchandise Jeans Display Hung Merchandise Face display Folded Table (new styles Swim suit –wall (face display) Footwear Bags + mix wall displayCash Counter Ducati Collection Promotions table :T-shirts Hung Shorts Merchandise Store windowAccessories, Eyewear, EntranceFragrances
• The store focuses more on Menswear than woman wear, 60% to 40% in assortment.• Entrance of the store is displaying items such as accessories, watches, fragrances, and sunglasses .• Tables with merchandise offer items such as, Bermuda shorts and T-shirts with a price less than the price of Jeans and other merchandise that is present in different corners.• T-shirts price 60 Euros made in India. Bermuda shorts 180 Euros made in Tunisia, Polo shirts prices are 70 Euros.
Merchandise Mix 7% 10% jeans 45% Pants T-shirts 40% shorts Black&Gold 30%Width, depth and consistency of range:• Novelty• Maintenance of the assortment• Style
Diesel Black GoldDiesel Black Gold Line, is not displayedwithin the Diesel store in Via delCorso, they have it at Via Conodotti .• The assortment of denim in the Black Gold is only 2%.• Most of the collection is Jackets, shirts, and T-shirts.• Black Gold is slightly different and more glamorous• Their prices are around 345 EUR for a pair of jeans.
Price Range Men Graph1000 900 800 700 600 500 400 300 PRICE LOW 200 PRICE HIGH 100 0
“We can describe it as a love affair between refined quality and rock & roll, translated into a contemporary collection.”“Diesel Black Gold products have an authentic vintage feel and a sophisticated look.”
Women Garments 15% jeans 20% dresses and jumpsuits jackets pants 8% shirts 26%2% sweaters1% skirts 3% 11% knitwear 14% Ts and Tops
Turnover in Million €857 (2010) €1.121 (2010) $311 (2010) EBITDA €139 (16.2%) €285 (25.4%) $40 Mono-Brand Stores 251 125 Directly Operated Stores 682 90 under «VF corporation»Turnover in Million €240 €272 $1.849 (jeans )EBITDA 48 (16.2%) $319Mono-Brand Stores 220 200 (VF corporation)Directly Operated Stores 450
Turnover in Million $2.128 (2010) €1.328 (2010)EBITDA $364 (17.1%) €163 (12.3%)Mono-Brand Stores 300Directly Operated Stores 682 Market shares in USA and EU (denim) 1.22% Denim market • 31 billion Euro 4% 3% • 839 million pairs of denim 1% DIESEL Guess 0,01% for all 7 mankind Replay 7% Pull and bear True religion
OVERALL MOOD OF THE COLLECTION MOOD• American dream• Young, sexy and adventurous lifestyle• Casual chicness• Sexy bombshell and bad boy• Trendy and fresh balanced look• Sexy and business COLORS • dirt brown‘/ gray • navy /dark green • black is dominate • beige • red • unisex DENIM fabric FABRIC • chameleonic fabric, • monochrome and printed denim • trendy graphic print
OVERALL MOOD OF THE COLLECTION • YouthfulMood • Fun • Stylish • Sexy & SophisticatedFabric • Polyester & Spandex • Cotton • Denim • Linen & Silk Colors pastel & neutral colorssss• bright colorssss •floral prints and patternssss • trendy patternssss •Texture • Roasted effect • Worn out effects • Used look & Rough texture • Arabian space wash
OVERALL MOOD OF THE COLLECTIONMOOD • Casual Basic • Street spirit • Parties • Family • School & SportFABRIC • cotton • polyester • viscose • spandexCOLORS • vibrant colors • contrasting patterns stripes • pink shades • Contrasting and geometric designsWash • Dark wash • Medium wash • Tints of grey
OVERALL MOOD OF THE COLLECTION • YoungMood • Seductive • American cultFabric • Cotton & Denim • Leather • Elastane • Linen • Polyurethane Colors More of cool colourssss• Pastel colourssss • Checkssss • Red & White & Bluesss •Texture • Burnt & Faded effect • Worn effect • Vintage effect • Rough textures
17-26 18-30• Boys and girls • Young adults(depending on their parents) • Urban style• Follow fashion • Money is not much of a• Urban style concern• Budget conscious REPLAY GLORIA PULL& T G JEANS BEAR M R K E T A E R T 20-35 25-45 • Street fashion • Urban style• Fast trend adopters • Rock style• Trendsetters • Money is not much of a concern• People with an ample disposable income TRUE RELIGION DIESEL 7 FOR ALL D&G MANKIND
Women JeansTrends:• Harem pants and other type of summer bottoms.• Jean shorts are prefered to jeans.• Light materials (silk, linen etc..) are prefered to denim.• Shiny denim fabrics.• High wasted jeans.• Clean rather than treated jeans.Facts:• Boyfriend, Jeggings and Joggjeans: the ones with the most best selling items.• Skinny and Superskinny: worst sellers.• Straight: There are not so many bestsellers. A lot of iconic items.• Flare: They perform good enough• Bootcut: They are not performing well.
Line Plan • Cut down the collection by 15% for S/S 2014. From 84 to 71. • Skinny and Superskinny: Merge the two categories in one. Bootcut Boyfriend 7% 9% Flare Bootcut 9% 12% 15% Boyfriend 13% Jegging Joggjeans19% 12% Flare 22% 9% Regular staright Jegging 13% Skinny/Super 12% Joggjeans 10% Skinny 10% 8% Banana 7% 13% Regular Wide Straight
•Increase the percentage of fashionable jeans. 33% 25% Fashionable Fashionable Ongoing Ongoing 75% 67% Ongoing items
• Increase high wasted jeans 4% 15% high waist 33% high waist low waist 63% low waist regular waist 56% 28% regular waist• Increase number of clean treated jeans clean 19% 30% 40% clean 49% medium medium treated treated 32% treated treated 30%
IntroduceCropped style jeans within some already existing categories.
Colors dark grey light JEANS women 0% white yellow 1% light grey black 4% 7% 4% beigemilitary pink redgreen 0% 1% medium blue 0% 0% 15%green 1% light blue 20% 2012 color palette andbrown proportions 0% dark bue 47% 2014 proportional color card
Fabrics/Washes• New technologically developed fabrics.• Eco friendly compositions
Details pre war pockets neon rust detailsstitch repair
Men JeansTrends:• Men Jeans are going to be a trend also for 2014. Baggy style is coming back, skinny trend fades.• Lighter textures of denim mixed with other material.• Shiny denim fabrics.• Clean rather than treated denim.Facts• Straight: Best sellers. Iconic Diesel jeans category.• Carrot: Best sellers. Trendy jeans category.• Joggjeans: Perform very well.• Bootcut: Perform good enough.• Regular: They do not perform well. Iconic Diesel jeans category.• Tappered: They do not perform well. Trendy category.• Skinny Jeans: They perform poorly. A very big category.
Line Plan•Keep the same amount of the collection, 111 items•Reduce the number of tappered, bootcut, skinny and regular categories.•Add 4 new categories: baggie, banana ,cropped and overall jeans. Merchandise compiosition 2% bootcut 4% 8% 4% straight 7% tappered 10% bootcut carrot 21% 24% straight joggjeans 21% tappered 15% skinny carrot regular joggjeans 5% baggie 19% 9% skinny banana 11% 14% regular 14% cropped 9% 4% overalls
Color The best colour in salesmilitary light mediumgreen yellow blue light grey 0% pink red 7% 8% 0% 0% 0% dark grey 9% black green white 2% 0% 13% beige 2012 color palette andbrown 0% 0% proportions dark bue 20% light blue 41% 2014 Colors are lighter in jeans not much dark blue jeans.
Washes/FabricNew technologically developed fabrics.Eco friendly compositionsThey call this type of fabric pre-war, whichhave a dust coat giving it a vintage used lookand the pockets as you can see in the pictureare very much pre-war.
Introducing Treatments & TechnologyDeflexation: made of polymerized silicone sheets that providecomfortable impact protection for flexible breathable durableand washable denim jeans.Codura Denim fabric is a blend of cotton and in vista nylon fiber6.6 providing abrasion resistance and is durable but soft.Dyneema Fiber: made of ultra high molecular weightpolyethylene and used in denim linings, light but highly impactresistant.Turbo Tech: launched by ISKO a new denim technology thatallows the wearer to customize and accelerate the evolution ofjeans from raw to vintage through various cleaning and wearingregimens.Botanic Denim: The simple addition of TENCEL to conventionalauthentic cotton jeans can improve the environment significantly.
Pants and Shorts• Jeans sales have decreased and during Spring summer season they decrease even more due to weather and lifestyle during summer, as an alternative the pants category has to be sufficient, evident and trendy to alternate and compensate for the drop in jeans sales.• Menswear Pants show 11 best sellers out of 21 items due to missing sizes analysis ,Shorts showed 4 best sellers out of 11 items.( Best Sellers are keepers , higher demand on Pants rather than shorts).• Womenswear Pants showed 7 Best sellers out of 23 items ,shorts shows 5 best sellers out of 10 items which proves high demand on Shorts for SS12 collection.• The same quantity will be kept as is but the percentage within will differ in SS14 within the quantity of trendy items in ratio with ongoing items Introducing new styles to match the Diesel attitude and clientele.
Men Pants SS12 Shorts SS14shorts mix 29% 15% gabar canvas dine 37% 17% waxed pants 18% canva 71% s deni gabardin m 50% e 33% 26% denim 4% Pants Shorts gabar dine 17% mix 14% canvasgabard 34% ine canva 24% deni s m 50% denim 33% 28%
Best Sellers SS12 Men PantsPECTRON Pant H-LAP Short H-LAP LARKSHORT PITO CHI TIGHTTY-LAB TY-Tool PESTOR KROSHORT PANGUARY
Line Planfashionableongoing ONGOING 44% TRENDY 48% 56% 52%
Women JacketsTrends:• According to the forecast 2014 denim and leather jackets will be in trend, introducing new types of washes and silhouettes.Facts:• This is not the main category of goods for Diesel.• Coats and jackets represent only 12% of the total assortment line, 36 % of which are denim jackets.• Denim material outwear items have increased in sales within the extreme sport lifestyles due to new denim technologies.
Line Plan SS 2012 SS 2014Inwear Outwear mix Waistcoatsleather 14% Inwear leather 11%jackets jackets 7% 7% Outwear mix 14% Outwear Outwear lather jackets lather jackets Denim 22% 14% jackets 43% Inwear Denim jackets Inwear mix mix 43% 11% 14%
Introduce• Parka - Pure cotton denim with highly abrasive details and washes 10-13 of fabrics.
Introduce • Patched items bleached denim colors. .• Sleeves are set forward and cropped to below the elbow. • New group of waistcoats• A trapeze silhouette cropped jacket with A-line • A rounded shoulder line cuffed kimono sleeves
Color Colour Palette SS14 Colour Palette SS12 red/orange beige 5% yellow 8% 3% white 15%light grey dark denim 10% bluegreen 10% 3% light blue 12% Military Green 12% black 22%
Men Jackets and ShirtsTrends:• Mix of summer colors and Earth colors return of floral Prints• Key words for SS14 outerwear: Futuristic, minimalism, Twisted, Reconstructed, Mysterious, Austere and Weathered.• Major trends in jackets are Parka and bomber Jackets and Knitted Polo Shirts, printed , Pajama shirtsFacts:• More Focus on Jackets and Shirts and less on Sweatshirts and Sweaters as according to the sales trend of Sweatshirts and Sweaters are decreasing for SS Collections.• According to Bestseller analysis jackets had 15%, Shirts had 12%, Sweaters and Sweatshirts had 8% best sellers..
Line Plan Ongoing; 20% Ongoing Ongoing 20% Ongoing Fashionable Fashionable Fashion able, 80% Fashionabl Ongoing Sku’s e, 80%The current collection has 46 styles of jackets and has wide and shallow assortment, weplan to increase the number of styles and have wide and deep assortment, as we plan tointroduce new colors and new styles.
Introduce 1. The summer coats 2. Voluminous parkas New Plan 3. Double breasted 4. Deconstructed blazers 16% Summer Coats 23% Parkas 5. Cotton bomber jackets Double brested 11% 6. Demure classic raincoats Blazers 7. Brightly coloured military style jackets 16% Bomber Jackets 11% Raincoats 11% 12% Military jackets• Teemed with luxurious satin, technical fabrics and Cotton of- course. The silhouettes different too, from puffy to minimalist.
Colors Colour Palette SS12 0% 0% 0% 0% 12% 12% 0% 12% 7% 49% 7% 0% 0% 0% 0% Colour Palette SS14 0%The color palette will be typically summery, consisting of orange,yellow, purple and turquoise. Brown, mixed with neutralsrepresents the, natural colours, like sage green sand and beige willbe used.
Introduce New Plan 13% Stand-Collar 23% Half Placket City short sleeve 17% Baseball 10% Pyjama 10% Cropped 14% 13% Knitted PoloKey StylesStand-collar shirt-Half-placket shirtCity short-sleeve shirtBaseball shirtPyjama shirtCropped shirtKnitted Polo Shirts
Colors 2012 Color Palette 0% 0% 0% 0% 20% 3% 9% 17% 6% 6% 0% 0% 34% 6% 0% 0% 2014 Color Palette• Purple, orange and turquoise blue, like the sea, freshen up the fashion in the summer heat. Yellow, like the sun, is the main primary colour
Prints• Summer calls for prints, they’re bright and fun. For the season, stripes have been re-polished:. The floral print trend, the foulard print, but with a twist of patchwork, paper or postcard prints works.
Line Plan Fashionable; 23% Ongoing Fashionable Ongoing Fashionable; Fashionable 40% Ongoing; Ongoing; 77% 60% On Going StylesAs we want to concentrate more on jackets we will reduce the quantity of styles of Sweatshirts andSweaters and would also like to change the fashionable and ongoing assortment of this category.
Key Details Introduce• Retro-inspired boxy proportions• Neckline- Focused Updates 18% High V vest 22% Shrink-Fit Sweatshirt• Easy-fit soft draping Deep V-neck cardigan 14%• Draped construction 14% Cut-off Diy Sweatshirt Drape tee• Engineered Modern 18% 14% Shrunken-V CardiganKey Styles• High V vest• Shrink-fit sweat• Deep V-neck cardigan• Cut-off DIY sweat• Drape Tee• Shrunken-V Cardigan
ColorsPrevious colour palette 0% 0% 0% 20% 0% 0% 35% 0% 4% New Color Palette 7% 9% 0% 0% 17% 9% 0% 0% More of Earthen Colours, shades of greys, blues and whites with flashes of Red and incandescent yellow .
Men T-Shirts ongoing ongoing 29% 29%trendy trendy 71% 71% 9% 19% Crew neckline Crew neckline13% V-neckline 50% V-neckline Button closing Button closing 31% 78% New styles : • Styles remain the same by 85% Diesel logo t-shirts • Knitted polo – Johnny collar • Outdoor pursuits • Clean sportswear
Key Looks: Finishes & Textures Materials• asymmetric cut • Tie dyed • Denim• resorts shirt update • faded • Jersey• asymmetric sleeves • Vintage worn effect • Light-weight knit• V-neck T-shirt • Rusted effect, Stained • Bio psychedlic prints• indigo patches • Patches • Knitted stripes• all over prints • Striped• vintage inspired• the Denim T-shirt• Insert panelling
Color Palette 2014Color 28% 22% 4% 6% 1% 12% 6% 13% 2% 4% 2% Color Palette 2012 Fabrics
Women Dresses and SkirtsFacts:• According to the WGSN Denim Report, various textures and details such as dust coating, rust color, vintage trims are upcoming.• Also the color palette defined by WGSN report focuses more on a range of cool, warm, bright and pastel colors for women categories.• As per the best seller analysis, only 30% of the skirts, 10% of shirts, 25% of dresses and 35% of Tops and T-shirts are selling well.• According to the analysis of the line plan, the previous collection offers a very limited range of fashionable items. Thus, increasing the no. of fashionable items by 10%.Trends:• The next big trends: Flared Skirts, Full Length Skirts, Belted, Empire waist and Flared dresses, Collarless and Slash neck Blouses/Tops.• Indigo patterns, floral patterns, neon colors, Tie and dye are the next upcoming range of patterns and prints.
DIESEL WOMENSWEAR DIESEL WOMENSWEARSHIRTS ASSORTMENT SHIRTS ASSORTMENTANALYSIS SS12 ANALYSIS SS13 ongoing ongoing fashionable fashionablefashionable; fashionable; 40 40 ongoing; 60 No. of items: 18 ongoing; 60 Ongoing • The Previous collection offered a variety of styles in shirts, from collarless, short lengths to loose styles. • The styles remain similar to these ones. Changes made in the colour palette and patterns.
Color/Fabrics Color Palette 2012 Color Palette 2012 2% 0% 0% 0% 28% 17% 7%0%2%0% 24% 13% 5% 0% 0% 0% 2% 0% Using a mix of warm and cool colors. Including patterns like polka dots, stripes and checks along with solid colours.
Details• Patchwork• Rusted color• Faded or used look
DIESEL WOMESWEAR DIESEL WOMESWEAR Ongoing TOPS ASSORTMENT TOPS ASSORTMENT ANALYSIS SS12 ongoing ANALYSIS SS14 ongoing fashionable fashionablefashionabl fashionabl e e 30% 40% No. of items: 30 No. of items: 40 ongoing ongoing 60% 70% New Style: Collarless(5) and Slash neck Blouses(5)
Colors Color Palette 2014 Color Palette 2012 0% 0% 0% 18% 0% 9% 5% 23% 0% 14%0% 27%0% 0% % 0% 0% 0% The color palette is almost similar to the previous collection, addition od pastel and bright colors.
Numeric Line Plan New Styles Dresses SS14 New styles of Skirts SS14 Belted Full length flared Empire waist high waist Flared; 9 Belted; 9high waist; 2 Full length; 2 New Styles of Tops SS14 Empire waist; flared; 2 9 Collarless Slash neck Slash neck; Collarless; 6 6