Diesel is intensifying its efforts to protect the brand.
The new campaign follows a legal battle spanning 23 years, culminating in the Italian fashion group winning back the right to its brand in Indonesia. “International laws are not protecting brands enough,” remarked founder Renzo Rosso. “If it takes a company like Diesel, which is renowned worldwide, this long to win a fight, then imagine how difficult it is for a young designer who is just stepping into such a competitive market.”
The group’s chief executive officer Alessandro Bogliolo has launched a global platform to defend the brand against counterfeiting and illegal distribution, with a special focus on the online market and trafficking through international customs. At the same time, Bogliolo has revised Diesel’s distribution strategy by elevating its positioning and cutting its wholesale revenues by 85 million euros, or $93 million at current exchange rate.
“We didn’t hesitate to commit to such a radical decision. After 37 years of success, Diesel needs a detox in order to be stronger and to stimulate an organic growth in the direction identified within the new course,” said Bogliolo.
The company cited a legal action started this year by the U.S. Federal Court in New York against 83 sites which were illegally selling counterfeited products by utilizing the cybersquatting technique. So far, Diesel has closed 3,346 sites, sent 4,000 cease and desist letters, and delisted 19,000 sites from Google. Calculations indicated that Diesel has avoided about 700,000 visits to illegal marketplaces and 9,200 bids have been removed completely. Custom controls have allowed for the seizure more than 60,000 items coming from China in 2013, and 75,000 in 2014; more than 80,000 items in the European Community, while in Portugal the company just confiscated 290,000 counterfeit underwear items.