Why Do Djibebana D&G'S Clothes Sell So Well?

Brand T-shirt with the word "resist Dolce & Gabban"

According to the world clothing shoes and hats net, Dolce & Gabbana held a fashion conference in autumn 2018 February 25th afternoon, the top of the industry in February 25th.

Reporters are missing quite a few.

Over the years,

The two creation

Domenico Dolce and Stefano Gabbana have been playing a fast role in prohibiting media reporters from entering the show. "The New York Times", "Vanity Fair", "W", "WWD", "Italy", "editor" and editors and writers have been blacklisted.

Stefano Tonchi, editor in chief of W, even hosted luncheon at the Dolce & Gabbana press conference, and welcomed the same comrades who were refused admission.

It is not uncommon for fashion designers and fashion critics to hate each other.

But Dolce & Gabbana's contempt for unpleasant reporting matches its controversial public relations strategy.

In recent years, the designer has also been labeled as "slave sandals" for selling $2395 shoes. It is considered to be "fear of similarity" because the child conceived by in vitro fertilization is "synthetic", and has aroused a wave of resistance in Twitter (nearly 3 years ago, calling for boycott the #BoycottDolceGabbana label of the brand, and now there are people who use it now and then).

This combination of designers also criticized Melania and Trump for their actions and comments, and their social media performance was not so stable in general. The most notable ones were the war on Instagram account Diet Prada, which focuses on the exposure of fashion.

They responded with their own designs and produced T-shirts with #BOYCOTT Dolce & Gabbana printed on their chest ("resist Dolce & Gabbana").

They also took the actual action to "break away from" the fashion industry in Italy, such as no longer participating in the Milan fashion week sponsored by the Camera Nazionale della Moda Italiana. They refused to participate in the exhibition held in Milan palace, Tonchi, and commentator Maria Luisa Frisa, "Italiana: Narrating Italiana:", "1971-2001," ("1971 -:: the history of Italy in fashion"). "Milan"

Finally, two curators had to replace two Dolce & Gabbana with private collections.

But despite these murmurs, sales of Dolce & Gabbana are rising.

According to the documents submitted to the Milan chamber of Commerce, the total revenue of the brand in the last fiscal year ended March 31, 2017 was 1 billion 100 million euros (including the 75 million euro accident earnings after the early termination of the contract by Procter & Gamble, a franchisee), which rose compared with the 1 billion euros last year.

Wholesale business is still its largest revenue engine, contributing nearly 725 million euros, with a direct retail sales of only 167 million euros and a franchise turnover of 99 million euros.

Cash flow in the Dolce & Gabbana balance sheet also increased significantly in 2016, from 270 million in the previous year to 382 million 500 thousand euros.

For brands that are often questioned by consumers and industry observers about integrity and relevance, it is not a bad performance.

So, why?

Dolce & Gabbana did not respond to the request for comment, but it is not difficult to see the design and marketing strategy.

First of all, the brand can create trustworthy products and attract repeat customers.

For example, brand logo frilled cocktail skirt, each season insisted on updating materials and patterns to launch, the style is consistent, always can foil the body curve.

Some aspects of the brand also reflect the spirit of social inclusion, such as the design of turban and robe products for Muslim women.

Although many retailers declined to comment on this article for a variety of reasons (mostly due to the current busy fashion season), the Dolce & Gabbana retailer lineup has been able to illustrate the problem: Net-a-Porter, Moda Operandi, Saks Fifth Avenue, Bergdorf Goodman, Neiman Neiman and almost all major multi brand stores are partners of the brand.

"Brands are absolutely attractive," said Mario Ortelli, senior luxury analyst at Stanford C. Bernstein. "They can successfully create a classic but novel fashion series that constantly meets consumer desires." Sanford Bernstein said.

Dolce & Gabbana as a private enterprise, but still has the ability to focus on the long term and decisive implementation, such as closing the low-end sub line D&G in 2011 to further explore the high-end fashion market.

"Shutting down the sub line will affect the financial situation of the brand for several years," Ortelli explains. "But the brand can be better positioned."

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More importantly, although many brands no longer work with Yoox, Gilt Groupe and other discount business competitors, Dolce & Gabbana is still open to this channel.

"Dolce & Gabbana are very revealing on these low profit discount websites," said Andrea Squatrito, founder of RE Analytics, Milan investment intelligence company. The company tracks the online sales of luxury brands, "not as demanding as other luxury brands."

The low price strategy of Dolce & Gabbana is probably not as damaging as expected.

Although some full price retailers have narrowed the scope of the purchase of Dolce & Gabbana products in the past quarter, on the website of Farfetch and Net-a-Porter, the brand's full sales rate, that is, the percentage of products sold before the discount, is still above average.

"Its performance is not as good as that of Kai Yun's brand [Gucci and Balenciaga], but considering its massive entry into the discount website, this performance is excellent," Squatrito said, adding that RE Analytics observed that the brand's activities in the discount business in October 2017 have also been reduced, "perhaps indicating that this season has improved on the full price sale."

Selling products may be the key to increase revenue, but how brands do product marketing is equally important.

Advertising and publicity spending increased by 91 million euros last year, up from 84 million euros the year before.

In spite of the new high spending on advertising and marketing, the combination of the expenditure has changed.

Dolce & Gabbana is moving away from traditional media and embracing Kol culture. In the 2017 autumn and winter fashion conference, we invited Aimee Song, Kristina Bazan and Marjorie Harvey to sit on a large number of opinion fans.

"The so-called" non-traditional "PR communication method will become the future of the luxury industry," said Intesa Sanpaolo analyst Gian Luca Pacini. "You have to use the right tools to reach the right customers. Of course, now digitization is already the main tool, which means you have to pmit as much content as possible at high frequency.

Dolce & Gabbana has not yet specified the ratio of advertising input to print and digital editions.

But received a public report from an advertising sales tracking platform, which tracked the brand's worldwide advertising expenditures from February 2016 to February 2018.

According to the report, over the past two years, Dolce & Gabbana has allocated about $66 million to 87 traditional paper publications, about 12 million US dollars spent on social media, online, mobile phone terminals, video and other digital products.

Overall, most of the money was allocated to the US version of Vogue, which cost about $8 million 400 thousand in 24 months (followed by Harper 's Bazaar, GQ, WSJ Magazine and InStyle).

In the past year, the print version of Dolce & Gabbana has cost about $26 million, down 7% compared with the same period last year.

Like many European brands which accept relatively low number of advertisements, Dolce & Gabbana cooperation with opinion leaders usually does not involve costs. Instead, they only provide free products in exchange for publicity. According to one source, at least some of the opinion leaders who participated in the 2017 autumn winter conference were not directly paid for their fees.

The important thing is that two designers can talk to customers through Instagram content without censorship. The content of posts is often different from traditional practices.

"Stefano Gabbana is really familiar with the way of communication," Ortelli said. "It's all about promoting his own brand. This is obvious, but his main goal is to convey information, interact with consumers and maintain a smooth dialogue with them."

That's right. If you can contact directly with customers and ask journalists to participate in the conference, what can we do in the Internet age?

More interesting reports, please pay attention to the world clothing shoes and hats net.