D&G Lost The Chinese Market &Nbsp; Decided To Close Down.

Women's wear

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An insider close to Dolce&Gabbana pointed out that the decision to close D&G has not yet been made.

In April 5th, I learned from a D&G dealer in China, "D&G did not give 2012.

Or corrode the main brand.

The Wall Street Journal said that once the news was confirmed, the fashion show in September this year will be the last performance of D&G, which is only 17 years old, and the brand will cease operation in 2012.

At present, Dolce&Gabbana has begun to inform the retailer of its cooperation.

CEO, Lu Qiang, Shanghai's first Oteri J manager and a variety of luxury goods companies, said that D&G will be merged into the main brand Dolce&Gabbana. The main reason behind this is that D&G as a sub line brand is too serious for the main brand.

At the beginning of its founding, Dolce&Gabbana invested $10 billion to build D&G, but because of this, high investment has made D&G's development deviate from its orbit.

The Wall Street journal revealed that in order to ensure returns on investment, the price of D&G products had to be raised, which made D&G and Dolce&Gabbana clash on some products.

"The establishment of the sub - line brand is to expand the target consumer.

Sub line brands tend to attract more consumers at cheaper prices and products of different styles to increase their turnover.

Lu Qiang said.

D&G is the main contributor to Dolce&Gabbana's performance. Public figures show that as of March 2009, D&G's performance has reached 45% of the company's total revenue, which is $222 million.

But when Vice cards threaten the profits of the main brands, the conflict between the two brands is gradually highlighted.

In addition, D&G and Dolce&Gabbana names are very similar, often confusing consumers, and concise D&G seems to be more able to let consumers remember.

Does D&G play a role unclear?

McKinsey's "rising China luxury market" research report points out that China's luxury goods market has seen a dual change in the rapid growth of the total market and the more rational consumers.

The report predicts that by 2015, China will become the world's largest consumer of luxury goods, accounting for more than 20% of global luxury goods market share.

"Cheng is also China, losing China."

Cui Hongbo, chief executive officer of Lian Zhi Da brand management, told the author, "the traditional luxury market has been gradually saturated. At present, Asia has gradually become a bright spot in the growth of the luxury market, of which China is the most important.

"For many luxury brands, if it can not be better developed in Asia, then the brand will grow feeble."

Cui Hongbo said, "from a manager's point of view, if a brand is closed, the reason behind it must be a mistake in decision-making.

Once the purpose and intention of the brand are not achieved, the decision makers often choose to close the brand.

The birth of D&G is not clear about the logic and role of clothing brand combination. The brand is not selling well in China.

"Young D&G is also facing an awkward situation in China.

Mainly facing the design of young people, but the high price of D&G has made it difficult for many young Chinese consumers to accept it.

Consumers who really have the strength to buy this brand tend to choose a more mature and sexy Dolce&Gabbana. "

Lu Qiang thinks.

"For luxury goods companies, brands can't get the appeal of such a market in the Asian market, and the value of the brand is easily diluted."

Cui Hongbo said that D&G's influence in the old luxury market is not enough to make up for this shortcoming.