Diesel powers on
Updated: 2013-10-04 09:00
By Mark Graham (China Daily)
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China leg prominent in jeans billionaire's story of bringing the old to the new and vice-versa
Denim jeans pioneer Renzo Rosso, the man behind the hugely successful Diesel label, first visited China 20 years ago and was staggered to find very few people were dressed in the Western world's most enduringly popular item of casual clothing.
He vowed then and there to keep a close eye on the country and, when the time was right, introduce Diesel jeans to the market.
The Italian entrepreneur was spot on in his thinking - the company now has 32 stores throughout the country, with plans to triple the number within the next five years.
"The spending here in China is much higher," says Rosso speaking on the most recent of his regular visits to Beijing. "In the United States and Europe, consumers might spend $250 in the store; here it is close to $500. People buy more. It is incredible.
"I can remember 20 years ago it was nothing like this.
"Now China is booming, with so many opportunities. It is becoming one of the most important areas for luxury brands. You need to be here right now. Europe is stale but China and Russia are doing very well."
In the early 1980s, Rosso became convinced that blue jeans would benefit from a major stylistic revamp. Instead of making simple denim jeans with the option of zip or fly front, Rosso offered different cuts and in a "distressed" state, where the jeans were deliberately made to look faded, worn and even torn. The jeans looked secondhand but prices were hardly at charity shop levels. Diesel charged much more than other premium brands, arguing that the denim used was of a higher quality.
That may well have been the case but it was the perception of Diesel as a cool, trendy and rebellious brand - emphasized by edgy and controversial ad campaigns - that led to the clothes flying off boutique shelves.
The boss himself played the rebel role to perfection, dressing like a rock star, sporting tattoos and never being guilty of being the first to leave a party.
Nor has Rosso ever been accused of being self-effacing. He is proud of starting from scratch, even writing a book about how risk-taking and going against conventional wisdom built up a personal wealth that Forbes magazine recently estimated at $3 billion.
Forbes magazine says "he presides over a fashion empire that thas made the farmer's son a billionaire".
"I was always a pioneer and people don't always understand," he says. "They thought I was stupid, so I brought out a book called Be Stupid, which explained just how crazy I was - 18 chapters of my life.
"We also did a campaign which was based around the theme of stupid. The book was very successful and people said it really energized and inspired them.
"Chinese ask me about my life and my story. I want to do a speech to the university in future to tell them about my history. Diesel is a company that changed the fashion world and I would like to explain to young people in China how I did it.
"But I am not a stand-alone man. I work in a team. I like to involve everyone in what we are doing. You treat the team well and ask they how they can do it in a better way, then that really encourages their creativity and makes them feel that they are part of the company."
The Rosso empire now involves peddling far more than just blue jeans. Parent company Only the Brave - the motto emblazoned on Diesel products - now has majority stakes in other upscale fashion brands, including Maison Martin Margiela, Viktor & Rolf, and Marni. Total group revenues are now to $2 billion annually.
The boss's stated policy is to let the brands continue to do what they do well, crafting quality clothing for niche buyers without any interference from head office. Diesel, meanwhile, is expanding into other lifestyle product ranges, careful not to stray too far from its rock-oriented roots.
Suzy Menkes, the respected fashion writer for the International Herald Tribune says of Rosso as "for 25 years he has been a fashion innovator".
"In business I am looking to move us to a different area, not just clothing, shoes and bags," Rosso says. "We are expanding to watches and home furnishings. The home is becoming more and more part of your lifestyle because computer people spend more time at home.
"The idea is that you change your home style for the seasons, like with dresses. We are introducing lamps, textiles, furniture and kitchenware, using real know-how from specialists in that area.
"One room in my home has totally Diesel furniture, with the lamp and blankets and furniture, sheets, towels all done with that concept. It is so beautiful. I call it the rock room because Diesel is very much rock."
Despite the carefully cultivated bohemian look, Rosso has a sharp business brain that is well attuned to changing trends. Ideas, he says, can come from anywhere - at a bar, in the street, at a disco or at the movies. A recent visit to the 798 Art Zone in suburban Beijing left him hugely impressed by the creativity on display.
Diesel's rapid growth means that Rosso is likely to be visiting China more often. The nature of his job means a constant shuttling across the world to check on the 400 stores, but Rosso is also a dedicated family man who is equally happy to stay at home, given the opportunity, playing the odd game of football and catching up with old pals.
"For me, having good food and good wine and friends is the most important luxury in life. I also have a beautiful boat, a very old one from 1929. I live in a house that is from the 1700s.
"I love old things. They have more character, but I put technology and new things in there, making it a combination."
For China Daily
Renzo Rosso, the king of high-end casual wear, says he has always been a pioneer and people don't always understand. Mark Graham / for China Daily |
( China Daily European Weekly 10/04/2013 page28)
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