4. SALES DROP IN DENIM
MARKET Analysis of Denim Distribution Channel
Women’s Men’s
-Speciality stores +1.1% +3%
-Department stores -0.1% +0.9%
-Mass merchandisers +6.5% -0.2%
-E-commerce Decline N/A +15.1%
-Factory outlets N/A -17.7%
•Women’s denim have suffered a drop in
sales from last year.
•Overall Increase in the average price in
jeans rose by 4.1%, within men’s by 4.7%
and women by 3.7% .
•The increases have hardly compensated
for wholesaler’s higher price and retailers
expenses.
•Consumers having different income
levels and different tastes.
•Denim have changed from being a
commodity to being in fashion and lost
its charm.
•Consumers are building their wardrobes
in other areas like dresses ,footwear
before they are going back for a pair of
jeans.
•Profitability was hindered by high raw
material cost(cotton crops) and unit
volume was impacted by price increases.
• Last year’s analysis showed a pick up in coloured
denim, especially the upper end of the market.
• Denim has played an important role within the
extreme, Sports lifestyle(riders, snow boarders free
style ski, skate-board and bikers ) most of the new
action denim sells from around $100 as high as $400
for protective and advanced models.
Denim Today
5. DENIM ‘s SALES DOWN FALL NDP GROUP
U.S JEANS SALES (000)
Women’s
Men’s
2011
13,506,375 $
7,793,271 $
5,713,104$
2010
$13,799,525
$ 8,055,837
$5,743,688
CHANGE
-2.1%
-3.3%
-0.5%
U.S JEANS UNITS (000)
Women’s
Men’s
531,224
311,730
219,494
565,246
334,277
230,969
-6.0%
-6.7%
-0.5%
AVERAGE RETAIL PRICE
Women’s
Men’s
$ 25.43
$25.00
$26.03
$24.41
$24.10
$24.87
4.1%
3.7%
4.7%
-2.1%CHANGES IN JEANS SALES IN 2011
7. DENIM APPAREL IMPORTS 2011 VS 2010
DOZENS
VALUE
(000)
2011 2010 CHANGE 2011 2010 CHANGE
MENS/BOYS
JEANS 22,900,682 26,022,970 -12.00% $2,260,042 $2,152,394 5.00%
WOMEN'S/GIR
LS JEANS 19,725,121 24,385,710 -19.10% $1,916,132 $2,023,896 -5.30%
OTHER DENIM
APPAREL 882,950 1,042,799 -15.30% $758,743 $1,037,231 -26.80%
TOTAL 43,508,753 51,451,479 -15.40% $4,934,917 $5,213,521 -5.30%
8. 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!!!
9. DIESEL is a Denim Brand
“Renzo Rosso equated jeans with
freedom and rebellion leading him
to start a jeans brand that embraced
values such as individuality,
irreverence, bravery and freedom,
and these values very soon
translated into a lifestyle, we were
pioneers in this, we had to fight in
the beginning but today it sounds
quiet normal.”
“When lifestyle is authentic it can be
applied to many categories
starting from non denim apparel
collection to accessories,
fragrances and so on..”
11. 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.
13. Diesel Info and Mission
• 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.
“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.”
14. Target Market
Psychographic
Fashionable, Have Extra money to spend
significant on quality fashion clothing,
Attracted by Innovation, Hedonistic,
Experimental and Independent, Fun loving,
energetic and somewhat rebellious.
Demographical
Age- 20-35, Men and women, Higher Middle
Class, Early Young Professional.
Geographical
People living in big metropolitan cities.
Behavioral
Leisure time oriented consumption, Regular
customers, Brand Loyal.
16. POSITIVE NEGATIVE
I
N
T
E
R
N
A
L
E
X
T
E
R
N
A
L
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
• A complete lifestyle brand.
• exclusiveness strategy ( from 10000 POS
to 5000).
• Introducing a new image through OTB
group, instead of rebranding.
• Strong and unique advertising strategy
building an image for the brand, giving
identity to the costumer.
• Diversification in other merchandise.
• Diesel main product, jeans is somewhat
expensive.
• The sizes of the jeans, for women, do not
apply to all body types.
• Replica products and fake imitation
affects brand image.
• A dip in the demand of jeans can have a
major drop in sales.
• Fast fashion jean brands raise their sales.
• With new treatments and technology for
fabrics we can add value to the products.
• With rising concern in eco-friendliness of
products and stores, Diesel can respond
with promotion campaigns to instill trust.
• Diesel can tap emerging retail markets like
Brasil and Russia to make the most of the
unsaturated markets there.
• Outsourcing some divisions in ‘cheap
labour’ countries may help maintain
economies of scale.
20. • 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.
23. Width, depth and consistency of range:
• Novelty
• Maintenance of the assortment
• Style
45%
30%
40%
10%
7%
Merchandise Mix
jeans
Pants
T-shirts
shorts
Black&Gold
24. Diesel Black Gold
Diesel Black Gold Line, is not displayed
within the Diesel store in Via del
Corso, 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.
28. Price Range Women Graph
0
100
200
300
400
500
600
700
PRICE LOW
PRICE HIGH
29. Online Store Men Collection
38%
17%
9%
4%
10%
22%
Jeans
Jackets
Pants&Shorts
Shirts
Sweatshirts/Sweaters
Tunks & Tops&Polos
APPAREL
30. Price Range Men
CATEGORY PRICE EUR
JACKET 170-870
JEANS 110-270
PANTS 110-210
T-SHIRTS/TOPS 35-70
SHIRTS 70-180
SWEATERS 85-170
SHORTS 90-140
POLO 80-140
31. Price Range Men Graph
0
100
200
300
400
500
600
700
800
900
1000
PRICE LOW
PRICE HIGH
32. “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.”
40. 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
Turnover in Million €240 €272 $1.849 (jeans )
EBITDA 48 (16.2%) $319
Mono-Brand Stores 220 200 (VF
corporation)
Directly Operated Stores 450
under «VF corporation»
41. Turnover in Million $2.128 (2010) €1.328 (2010)
EBITDA $364 (17.1%) €163 (12.3%)
Mono-Brand Stores 300
Directly Operated Stores 682
4%
7%
0,01%
1%
3%
1.22%
DIESEL Guess
for all 7 mankind Replay
Pull and bear True religion
Market shares in USA and EU (denim)
Denim market
• 31 billion Euro
• 839 million pairs of denim
45. • American dream
• Young, sexy and adventurous lifestyle
• Casual chicness
• Sexy bombshell and bad boy
• Trendy and fresh balanced look
• Sexy and business
MOOD
FABRIC
• unisex DENIM fabric
• 'chameleonic' fabric,
• monochrome and
printed denim
• trendy graphic print
• 'dirt brown‘/ gray
• navy /dark green
• black is dominate
• beige
• red
COLORS
OVERALL MOOD OF THE COLLECTION
46. Mood
Fabric
Colors
Texture
• Youthful
• Fun
• Stylish
• Sexy & Sophisticated
• Polyester & Spandex
• Cotton
• Denim
• Linen & Silk
pastel & neutral colorssss•
bright colorssss •
floral prints and patternssss •
trendy patternssss •
• Roasted effect
• Worn out effects
• Used look & Rough texture
• Arabian space wash
OVERALL MOOD OF THE COLLECTION
48. • Casual Basic
• Street spirit
• Parties
• Family
• School & Sport
MOOD
Wash
• vibrant colors
• contrasting patterns stripes
• pink shades
• Contrasting and geometric
designs
COLORS
• Dark wash
• Medium wash
• Tints of grey
• cotton
• polyester
• viscose
• spandex
FABRIC
OVERALL MOOD OF THE COLLECTION
49. Mood
Fabric
Colors
Texture
• Young
• Seductive
• American cult
• Cotton & Denim
• Leather
• Elastane
• Linen
• Polyurethane
More of cool colourssss•
Pastel colourssss •
Checkssss •
Red & White & Bluesss •
• Burnt & Faded effect
• Worn effect
• Vintage effect
• Rough textures
OVERALL MOOD OF THE COLLECTION
50. 17-26
• Boys and girls
(depending on their parents)
• Follow fashion
• Urban style
• Budget conscious
25-45
• Fast trend adopters
• Trendsetters
• People with an ample
disposable income
20-35
• Street fashion
• Urban style
• Rock style
• Money is not much of a concern
18-30
• Young adults
• Urban style
• Money is not much of a
concern
GLORIA
JEANS
PULL&
BEAR
REPLAY
DIESEL
D&G
TRUE
RELIGION
7 FOR ALL
MANKIND
T
A
R
G
E
T
M R K E T
62. Trends:
• 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.
Women Jeans
63. • Cut down the collection by 15% for S/S 2014. From
84 to 71.
• Skinny and Superskinny: Merge the two categories
in one.
15%
12%
12%
13%7%
10%
19%
12%
Bootcut
Boyfriend
Flare
Jegging
Joggjeans
Regular
Straight
9%
13%
9%
13%
8%
10%
22%
9%
7%
Bootcut
Boyfriend
Flare
Jegging
Joggjeans
Regular staright
Skinny/Super
Skinny
Banana
Wide
Line Plan
69. Colors
light grey
7%
dark grey
0%
black
4% beige
0%
light blue
20%
dark bue
47%
brown
0%
green
1%
military
green
0%
pink
0%
white
4%
red
1%
light
yellow
1%
medium blue
15%
JEANS women
2012 color palette and
proportions
2014 proportional color card
72. Trends:
• 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.
Men Jeans
73. 10%
21%
9%
14%
4%
19%
24%
bootcut
straight
tappered
carrot
joggjeans
skinny
regular
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.
8%
21%
5%
14%
9%
11%
15%
7%
4%
4%
2%
bootcut
straight
tappered
carrot
joggjeans
skinny
regular
baggie
banana
cropped
overalls
Merchandise compiosition
80. Color
2014 Colors are lighter in jeans not much dark
blue jeans.
light grey
8% dark grey
9%
black
2%
beige
0%
light blue
41%
dark bue
20%
brown
0%
green
0%
military
green
0% pink
0%
white
13%
red
0%
light
yellow
0%
medium
blue
7%
The best colour in sales
2012 color palette and
proportions
81. Washes/Fabric
They call this type of fabric pre-war, which
have a dust coat giving it a vintage used look
and the pockets as you can see in the picture
are very much pre-war.
New technologically developed fabrics.
Eco friendly compositions
83. Introducing Treatments & Technology
Deflexation: made of polymerized silicone sheets that provide
comfortable impact protection for flexible breathable durable
and washable denim jeans.
Codura Denim fabric is a blend of cotton and in vista nylon fiber
6.6 providing abrasion resistance and is durable but soft.
Dyneema Fiber: made of ultra high molecular weight
polyethylene and used in denim linings, light but highly impact
resistant.
Turbo Tech: launched by ISKO a new denim technology that
allows the wearer to customize and accelerate the evolution of
jeans from raw to vintage through various cleaning and wearing
regimens.
Botanic Denim: The simple addition of TENCEL to conventional
authentic cotton jeans can improve the environment significantly.
84. 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.
96. beige
10%
dark blue
2%
blue jeans
12%
military green
20%
brown
2%
black
14%
light grey
10%
white
12%
red
8%
blue
2%
light yellow
4% orange
popsicle
2%
Color
Color Palette 2012
Color Palette 2014
98. Trends:
• 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.
Women Jackets
101. Introduce
• Parka - Pure cotton denim with highly abrasive details and
washes 10-13 of fabrics.
102. Introduce
• Sleeves are set
forward and cropped
to below the elbow.
• Patched items bleached denim colors.
.
• A trapeze silhouette cropped jacket with A-line
cuffed kimono sleeves
• New group of waistcoats
• A rounded shoulder line
103. Color
Colour Palette SS14
white
15%
dark denim
blue
10%
light blue
12%
Military Green
12%
black
22%
green
3%
light grey
10%
yellow
3%
beige
8%
red/orange
5%
Colour Palette SS12
105. Men Jackets and Shirts
Trends:
• 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 shirts
Facts:
• 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.
.
109. Colors
The color palette will be typically summery, consisting of orange,
yellow, purple and turquoise. Brown, mixed with neutrals
represents the, natural colours, like sage green sand and beige will
be used.
0%
0%
0%
12%
0%
0%
12%
7%
0%
0%
7%
0%
0%
0%
49%
12%
Colour Palette SS12
Colour Palette SS14
110. Introduce
Key Styles
Stand-collar shirt-
Half-placket shirt
City short-sleeve shirt
Baseball shirt
Pyjama shirt
Cropped shirt
Knitted Polo Shirts
23%
10%
14%
13%
10%
17%
13% Stand-Collar
Half Placket
City short sleeve
Baseball
Pyjama
Cropped
Knitted Polo
New Plan
111. Colors
• 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
0% 0% 20%
6%
6%
0%
0%
6%
0%
0%
34%
17%
3%
0%
0%
9%
2012 Color Palette
2014 Color Palette
112. 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.
119. Women Dresses and Skirts
Facts:
• 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.
120. New Styles: Full Length(2), Short length flared skirts(4), High waist skirts (4).
DIESEL WOMENSWEAR
SKIRTS ASSORTMENT
ANALYSIS SS12
DIESEL WOMENSWEAR
SKIRTS ASSORTMENT
ANALYSIS SS14
70%
30%
ongoing
fashionable
Ongoing Items
90%
10%
ongoing
fashionable
126. DIESEL WOMENSWEAR
SHIRTS ASSORTMENT
ANALYSIS SS12
ongoing; 60
fashionable;
40
ongoing
fashionable
DIESEL WOMENSWEAR
SHIRTS ASSORTMENT
ANALYSIS SS13
ongoing; 60
fashionable;
40
ongoing
fashionable
No. of items: 18
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.
127. Color/Fabrics
Using a mix of warm
and cool colors.
Including patterns like
polka dots, stripes and
checks along with solid
colours.
0% 0%
28%
5%
0%
0%0%
13%
0%2%
24%0%
2%
0%
7%
17%
0%
2%Color Palette 2012
Color Palette 2012
130. Colors
The color palette is almost similar to the previous collection,
addition od pastel and bright colors.
0%
0% 18%
5%
0%
14%
0%
0%
0%
0%
27%
%
0%
0%
23%
0%
0%
9%
Color Palette 2012
Color Palette 2014
135. Numeric Line Plan
Full length; 2
flared; 2
high waist; 2
New styles of Skirts SS14
Full length
flared
high waist
Belted; 9
Empire waist;
9
Flared; 9
New Styles Dresses SS14
Belted
Empire
waist
Collarless; 6Slash neck;
6
New Styles of Tops SS14
Collarless
Slash neck