DOLCE & GABBANA TO CLOSE SHOPS IN JAPAN

DOLCE & GABBANA HAS RECENTLY ANNOUNCED THAT IT IS DRAMATICALLY SCALING BACK OPERATIONS IN JAPAN OF ITS D&G LINE, WHICH IS AIMED AT THE YOUNGER FASHION MARKET. THEY BLAME THE DECISION TO HALT THE DISTRIBUTION OF THE D&G READY TO WEAR LINES, LEATHER ACCESSORIES AND SHOE COLLECTIONS IN JAPAN ON THE SCARCITY OF AVAILABLE LOCATIONS FOR ITS BOUTIQUES AND THE WIDESPREAD AVAILABILITY OF COUNTERFEIT PRODUCTS. THE DECISION TO REGROUP IN JAPAN COMES IN THE WAKE OF VERSACE AND FRENCH CONNECTION UK LEAVING THE MARKET ENTIRELY WITHIN THE LAST YEAR. DOLCE & GABBANA AND D&G COLLECTIONS WERE LAUNCHED IN JAPAN IN APRIL 1996 THROUGH A DISTRIBUTION AGREEMENT WITH THE LOCAL FIRM OF GROUP MISAKI SHOJI. A NEW SUBSIDIARY, DOLCE & GABBANA JAPAN KK WAS SET UP IN AUGUST 2001 AND, SIX YEARS LATER, THE COMPANY TOOK OVER ALL PRODUCTION AND DISTRIBUTION OF D&G READY TO WEAR LINES, ACCESSORIES AND SHOW COLLECTIONS. WITH THE ORGANIZATIONAL CHANGE CAME THE PROPOSAL FOR THE FASHION HOUSE TO DIRECTLY DISTRIBUTE ITS PRODUCTS THROUGH STAND-ALONE BOUTIQUES AND SHOPS IN SHOPS, THE COMPANY SAID IN A STATEMENT. PART OF AN EFFORT TO TAKE THE D&G BRAND UPMARKET, THE FIRST BOUTIQUE WAS UNVEILED IN 2009. AT PRESENT, THERE ARE 15 D&G BOUTIQUES ACROSS JAPAN. IN RECESSION-HIT JAPAN, HOWEVER, THE APPROACH HAS FAILED AND THE BOUTIQUES WILL BE CLOSED BY 31.JANUARY.2011.