MILAN — Diesel is stepping up and streamlining its digital operations by implementing a new omnichannel strategy supported by Moon, an in-house designed operating model, which also fosters the customer experience.
As the COVID-19 outbreak and lockdown measures shift consumer behaviors and digital sales surge, the brand stepped on the gas to bring Moon to light. The project — which started being developed ahead of the pandemic — took 13 months to complete, significantly faster than expected, the company said. Ahead of Moon’s debut, between March and April, Diesel has quietly taken back full control of its web operations, which had been partially outsourced.
In 2019, e-commerce accounted for 12 percent of Diesel’s revenues, registering a double-digit increase compared to 2018. Overall Diesel, which represents 60 percent of parent company OTB’s business, returned to growth last year, posting a 2.6 percent increase in sales.
The new operating model will allow increased service levels, including a seamless in-store return policy, a pre-order function, as well as same-day pickup in all stores globally and same-day delivery in key cities, such as Milan, Berlin, Monaco, Germany, Paris, London and New York. As of Dec. 31, Diesel counted 172 directly operated stores, 181 concessions and 326 franchised units globally.
Better targeting online shoppers and their habits, Moon employs data to enhance the customer experience, providing user-specific interfaces and offers new payment methods, such as digital wallets and a buy-now-pay-later service, which enables customers to delay their payment by up to 30 days.
The tool is also aimed at enhancing the company’s retail operations as it provides the full control of Diesel’s order management system and improves stock fluidity between warehouses and stores, as well as product visibility. By integrating the business-to-business and business-to-consumer activities, logistics operations are enhanced, allowing for all-around omnichannel client services.
The new strategy is part of the brand’s reorganization and streamlining and repositioning of its retail and wholesale channels, kicked off last year. In 2019, Diesel opened 45 stores with a new design concept, relocating existing stores and closing non-strategic venues.
Former Balmain chief executive officer Massimo Piombini joined Diesel on Jan. 27, succeeding Marco Agnolin, who left his role as ceo of the brand at the end of March 2019.
Headquartered in Breganze, Italy, Diesel is the biggest brand in OTB’s stable, which also includes Maison Margiela, Marni, Viktor & Rolf and production arms Staff International and Brave Kid. Last year, OTB also took a stake in Los Angeles-based luxury brand Amiri, founded by Mike Amiri in 2014, while the group’s Staff International sealed a licensing agreement with Koché.