Word: product
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Rosso's big idea was to improve the product and the margins. (He had road tested the first part of that formula as a teenager selling friends $7 jeans he made on his mother's sewing machine.) In 1988 he hired a young Dutch fashion-school grad named Wilbert Das, and they began to experiment with dyes and destruction?all sorts of techniques to age the jeans and give them a more vintage feel. They moved pockets, reshaped the jeans, introduced curves?and then charged a whopping $79. Their look was Rosso's look, a blend of thrift store, Americana...
...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...
...function and fashion from their sportswear. Clothes need to do something?stretch, fight odor, wick moisture, regulate temperature?and look good as well. "We always saw athletic wear and style as mutually exclusive," says Julee Bean of Adidas. "And they don't need to be. You can wear our product in the gym but also wear it to get a latte and still look...
...expand beyond its base to the growing mass market in activewear. Under Armour, which began by making tight-fitting compression shirts for football players three years ago, is also wooing the nonathlete with a broader range of shirts and shorts with a more generous fit than their pioneering products'. Founded by Kevin Plank, a college football player who was looking for a dryer, better-fitting alternative to a cotton shirt to wear under his pads, Under Armour initially produced nothing but underwear. It wasn't long before athletes began looking for the same breathability and comfort in their street clothes...
...Nike still enjoys the largest market share in the athletic-apparel sector, with 17.5%, Under Armour has been catching up to the sportswear giant when it comes to performance apparel. There Nike owns 37.5% of the market, while Under Armour has 30.5%. For compression apparel, Under Armour's signature product, the company maintains its dominance, commanding 61% of the market, to Nike's 15%. And that's where Under Armour executives plan to start building market share in the larger sportswear sector: from its base of loyal fans who initially go to the brand for specialty products but then discover...