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Case study: How jeans power Diesel

Diesel has expanded beyond jeans in a competitive market.
Diesel has expanded beyond jeans in a competitive market.

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BASSANO DEL GRAPPA, Italy -- Renzo Rosso, from a poor farming family near Padua in Italy, was only 15 when he first stitched a pair of jeans.

More than three decades on, the Diesel fashion empire Rosso co-founded is a household label with a turnover of almost $750 million and more than 200 stores worldwide.

Now competition in the luxury jeans market -- Diesel's staple -- has appeared from Italian companies like Miss Sixty and U.S.-based labels like Earl Jean and For All Mankind.

"Diesel's performance over the last 20 years has been sensational. They have been one of the most successful and dynamic fashion brands," Alice Rawsthorn of the Design Museum told CNN.

Rosso co-founded a clothes label in 1975 which was renamed Diesel in 1978.

In 1985 Rosso bought the brand outright and now Diesel's offices on the outskirts of Molvena, between Venice and Verona, employ many people in the area.

Aimed at the youth market, the brand has won several hip awards for the founder, whose motto is "Diesel is not my company, it's my life."

Rosso attributes success to hiring good people from around the world and teamwork. But above all he emphasizes the need to motivate creativity.

"I expect them to work like I work, with an incredible passion and love, then everything comes easy and nice," says Rosso.

Jeans have driven Diesel in a market where price confers kudos and a pair of denims will set you back $100.

"Every country inspires us from Pakistan to India or Japan. Every season we are there, we see what is going on the street, the young kids, the groups and the attitudes," adds Rosso.

The offbeat advertising has also attracted attention. "Diesel is sort of weird and gay and European and wonderful and not afraid to be over the top," says Neil Stevenson, editor of The Face magazine.

Rosso is also inspired by some of the giants of technology. "I admire Apple because of its incredible nice design.

"I also admire Microsoft because of the way they have developed the company, their way of work the way the employees are able to go to work whenever they like."

CNN's Andrew Carey contributed to this report


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