The Dolce & Gabbana group plans to scale back its Japanese operations by giving up on its D&G brand, which targets a younger crowd, and market only a higher-end label instead.
This comes as the Italian fashion house moves to concentrate its business resources in markets showing growth potential, such as China.
The group now operates 18 D&G stores in Japan, selling T-shirts in the relatively affordable range of 10,000 yen to 20,000 yen that have a following among hip shoppers in their 20s.
Sales are growing, but the lower prices have left Dolce & Gabbana with thin margins alongside rising personnel costs. It will shutter all 18 D&G stores next January.
Instead, the group will have Japanese operations specialize in its Dolce & Gabbana label, which offers such items as suits priced around 200,000 yen to 300,000 yen. The group already operates 16 Dolce & Gabbana stores in Japan catering to well-heeled customers.
These higher-end stores account for 70% of the roughly 10 billion yen in annual sales generated by the Japanese operations.
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