Dolce & Gabbana Decides to Merge D&G Back Into Main Label

March 9, 2011 • Fashion

So long D&G!

Here's an interesting bit of fashion business news: Dolce & Gabbana is planning to fold its secondary D&G brand into the main Dolce & Gabbana label. The D&G label will reportedly disappear, but the main luxury line will extend its price range to carry lower-priced clothing.

The D&G line will fold in August 2012, and its last runway show will take place in Milan this September. The Wall Street Journal has reported that a source close to the company noted a final decision to merge the lines hasn't yet been made. However, Dolce & Gabbana reps have already begun notifying its retail partners of the change. 

But is this merging of the two lines a good idea? It would be like if Max Azria combined all three of his collections—BCBGMaxAzria, Max Azria and Herve Leger by Max Azria—into one brand. Each line has its own signature aesthetic, from playful to sexy to sophisticated, and combining them would significantly dilute each one. Such is the case with D&G and Dolce and Gabbana. Founders and head designers Domenico Dolce and Stefano Gabbana have created two very separate followings in their labels. D&G is vibrant and youthful (see above ad) while Dolce & Gabbana is world-renown for its elegant luxury and sophistication. 

Yet the designers insist that the move will be beneficial to the company overall.In the company's ongoing attempt to keep up with the fast fashion market, Dolce & Gabbana poured nearly $100 million into D&G's development, got a new headquarters,and hired 300 people to work on D&G's production. But paying for the heavy investment reportedly monopolized D&G's finances and as a result, the company had to raise prices to pay off their debt. That eventually led to some overlap with Dolce & Gabbana and about six months ago, the designers had to come to terms with the fact that their diffusion label was literally eating up their top-tier line and that something needed to be done. 

So from a financial standpoint, this new strategy seems not only necessary, but crucial in maintaining both labels (OK, so we can get on board with that). As part of the strategy, Dolce & Gabbana is hoping to convert many of D&G's stores and wholesale distributors to the main line and plans to keep most of the D&G employees, according to company sources. And as far as we're concerned, there's plenty of Dolce & Gabbana love to be spread around!

-Alia Rajput

Article Source: The Wall Street Journal

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