A Real Reason Behind D&G Brand Shutdown

Breaking news about D&G line shutdown has certainly left many fashion critics wondering about a real reason behind sanity of this business decision. D&G, a youth line has been announced to live it’s last season during the Spring/Summer 2012 collection demonstration after which D&G will be history. Domenico Dolce and Stefano Gabbana explained the decision saying that the line was always meant to be a sibling to the main brand Dolce & Gabbana. Over the past few years D&G however outshined the father brand thus turning the consumer away from the main line.  Hm… so you guys are cutting the most profitable line in your company? Does it even make sense?

It is normal that during recession discounted luxury brands did better than luxury or mid-market. Companies such as Coach even capitalized on the idea by opening factory stores that are selling more than their flagship stores. Roberto Cavalli put more efforts on developing Just Cavalli line opening first JC flagship stores in Italy and the US. Nothing personal, it’s just business.

It is not a secret that both D&G founders are not friends with finances and the tax man. In 2009 Domenico and Stefano were charged for tax evasion for having moved the head office from Italy to Luxembourg thus hiding over $200 in taxes. But no one would think that guys would make such a daring move to kill one of the most successful brands in fashion history.

I think, a real reason is counterfeit. It is clear that D&G brand was either not trademarked on time nor is just too simple to double trademark. Some Donna and Garry can came out and argue that they also deserve D&G name to be used for trades. Acronyms in US are not even allowed to be trademarked.

Over the years of travelling across the word I have never seen more of any other brand name than D&G. One time I visited excursion to Turkey’s famous Salt Pools and on the way was brought to the cotton factory. In the factory shop along with famous Turkish towels and linens there was a huge section of pants and shirts with D&G label on it. Now, that was 10 years ago. Just this year I went to Paris and saw a huge D&G store on one of the central touristic streets. Happily, I went in there and was instantly disappointed. Not only I saw over 500 items on display, which is impossible as each D&G collection is not more than 40 items, but also all items were made in China. It is widely known that D&G is one of the few lines that is still made in Italy under rigorous control of both founders.  Ok, no one is even surprised by Turkey, but Paris! This is over the board. To conclude, in Toronto, in Yorkville (one block away of Bay & Bloor) which is the most touristic area of the city there is a store called Gabbana. It used to face another store called Dolce. I asked the store personnel a few years ago whether there is any affiliation with the famous brand and was told, that Dolce & Gabbana are simply two stores carrying same name.

Anti-counterfeit policy is the only solid reason that comes to my mind that logically explains why D&G brand has been shut down. One can’t blame Gominico and Stafano for not willing to share their success with thousands of other counterfeit shops. Dolce & Gabbana company is still privately owned. Unlike LVMH or much larger Armani Corporation Dolce & Gabbana has simply no resources to protect their Intellectual Property.

We can only hope that genius designers will quickly come up with a better lower luxury brand name and do all proper steps to protect the identity without leaving out the dedicated fans from the pleasure of buying their fashion creations for a rather reasonable price. For now D&G glasses and D&G sunglasses are becoming collectibles and are definitely worth checking out. At Eyeinform, you can be assured, glasses are authentic.

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2 Comments to “A Real Reason Behind D&G Brand Shutdown”

  1. ‘Domenico and Stefano’ not ‘Gominico and Stafano’… you could at least have checked on wikipedia the spelling of their first names…

  2. at least they are in good news

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