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...Diesel continues to be seen as an innovator (Rosso claims to have developed many of the manufacturing innovations for denim) in one of the most dynamic corners of the fashion cosmos, the jeans bar, where consumers are falling over one another to pay $150 or $200 a pair. That is a recent phenomenon. Jeans were long considered a $30, five-pocket commodity, with connotations of youth, rebels and weekends in the Western world. Periodically, prices spiked for so-called designer jeans (think Calvin Klein in 1980). But those remained a status sell focused on pocket stitching and the tag; most...

Author: /time Magazine | Title: Art Of The Deal: Who Drives Diesel? | 9/11/2006 | See Source »

...missing piece was marketing. In 1992 Diesel launched eye-catching, tongue-in-cheek ad campaigns that spoofed fashion advertising, the how-to craze and mother's wisdom with equal doses of kitsch and sex?and, seemingly as an afterthought, glimpses of Diesel product. "Diesel: For Successful Living" became the brand's tagline. Today Diesel continues to expand. In addition to perfume, there's a home-furnishings line in the works, and Rosso is in the middle of an ambitious strategy to make Diesel more premium by integrating sophisticated techniques from ready-to-wear and pushing up prices accordingly. Rosso says...

Author: /time Magazine | Title: Art Of The Deal: Who Drives Diesel? | 9/11/2006 | See Source »

Stefano Rosso is not so sure. "I'm more scared of losing touch with our younger consumers. We are creative, and if we lose touch ..." his voice trails off, and he shrugs. Stefano probably would have hated the opening of the new Diesel store on London's Bond Street in May. The two-level store on a prime corner is a template for the new Diesel. Curvy leather seating and mod decorative resin dividers are part of the sophisticated décor. The layout says designer rather than jeans. At the party, Diesel had paid actress Heather Graham to model...

Author: /time Magazine | Title: Art Of The Deal: Who Drives Diesel? | 9/11/2006 | See Source »

Like any other hot jeans brand, Diesel is accustomed to finding itself featured in fashion layouts and splashed across the celebrity pages, but earlier this year the family-owned company popped up on the financial pages. An Italian financial daily compared cash-flow data and estimated growth potential and proclaimed Diesel the top candidate among Italian fashion companies for a public offering. Published reports in Europe had Diesel scooping up designers Sophia Kokosolaki and Viktor & Rolf, recalling the Margiela acquisition. Goldschmied, the former partner who remains a Rosso confidant, predicts something big is in the works. "Finally, finally...

Author: /time Magazine | Title: Art Of The Deal: Who Drives Diesel? | 9/11/2006 | See Source »

...contributed to making jeans part of the luxury universe," explains Rosso. "If we could do that with denim, maybe we could do it in other ways. My intention is to be part of a new, upcoming version of prêt-à-porter." Investment bankers are skeptical that Rosso could transform Diesel into a multibrand conglomerate, but smaller designers have long hoped for a private concern to find a third way between big business and the financial pitfalls of independence...

Author: /time Magazine | Title: Art Of The Deal: Who Drives Diesel? | 9/11/2006 | See Source »

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