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The 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 he is driven by the increasing sophistication of fast-fashion outfits like H&M and Zara. And by the fact that there are more newly rich people in emerging markets. "My company is 28 years old, and all the customers who were with me at the start are now older and looking for more sophisticated things," he says.
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 a denim mermaid number for the tabloids, and guards shooed guests away from a roped-off VIP area—effectively aping just the sort of fashion antics that Diesel has long skewered in its advertising.
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, he has made a very important strategic decision. He could be the owner of a group that's a leader in the next wave of fashion."
Clearly, Rosso has been thinking about the next chapter. "We 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.
Over the lunch, just outside the low-slung stone lodge that is the main building of the Diesel Farm, an hour's drive from Venice, Rosso talked about what he would consider.
"You find a company that is 100% on the market and not controlled by a family and was a nice brand and is on the way to disaster—that could be an opportunity for me to buy. Yes, that would give me energy if I succeed," he says.