I've always had huge respect for Italian craftsmanship and the manners with which the Italian fashion and luxury industries have developed over the years. But I couldn't be silent on this one. It's a textbook case and one that I hope to clarify being proudly part of the Italian fashion system and always a strong supporter of China and the Chinese, both of which I do truly love and respect.
After reading hundreds of reactions and comments across Chinese and Western social media channels, a crisis management situation erupted, continually mismanaged by a top Italian luxury brand, Dolce&Gabbana, doing business in a country, China, which is rapidly evolving and merits respect.
Since 2009 I've had the privilege of doing business in Mainland China and Hong Kong, lecturing about the Luxury industry (especially Italian brands) at Chinese institutions like Jiao Tong University and the Luxury in China Summit. Also, being involved in annual market research initiatives at the China Luxury Report (Fortune Character Institute) and with the Fondazione Italia Cina, have allowed me to see firsthand and understand the rapid progression of the Chinese Luxury Customers (I use the plural "s" because there are many levels and types of customers to comprehend in China).
For some reason, in my presentations and case studies to date, I never utilized D&G (referencing the old logo) as an example of management style or example of coherence in the classroom. Perhaps it was their extravagant collections, the designers tone of voice or their apparent distance from more common members of the fashion system (like me), but perhaps I just couldn't connect with their history, direction or choice of words. Let's hope that changes, thanks to this experience.
During one of my lectures last April, I referenced the negative aspects of an online advertising campaign on WeChat undertaken by D&G in China, called #DGLovesChina. It was a real management faux pas which immediately created an uproar on Chinese social media and prompted the brand to soon after remove the campaign images from the web. But the damage was done and the flags were up. It clearly demonstrated poor respect towards Chinese people and culture.
The Great Wall of China, D&G and commoners? Taxi drivers and citizens on bikes shooting the breeze with fashionistas? Yin and Yang in the same picture? Don't tell me I'm in the position to wear or afford that stuff, and next to our national treasures and people!
Already at that time it was a warning sign for the design duo, who apparently did not do their marketing research by pre-testing the campaign while boldly assuming that a copy/paste marketing strategy in China could be utilised to impose their italianness. So the Chinese were already waiting for them at the next turn, giving them a second chance, but eventually showing no mercy, as the story goes... That was lesson number 1 which should have been a flag for not making the same mistake again. Unfortunately for them, this lesson was not learned and their autocratic and dictatorial management style continued unhindered.
It was the same style of campaign previously launched by D&G around Western world media in which real luxury models were shown in common Italian social settings like Sicily, Naples (see below) and Milan where the headquarters are located, in open air markets, street corners. Luxury juxtaposed to common folklore, food and religion, typical of the Italian roots of the brand. It looked fun, gai as they say in France and created movement and energy while portraying all the cultural innuendos that common life in Italy exudes, including Sofia Loren.
It was the same style of campaign previously launched by D&G around Western world media in which real luxury models were shown in common Italian social settings like Sicily, Naples (see below) and Milan where the headquarters are located, in open air markets, street corners. Luxury juxtaposed to common folklore, food and religion, typical of the Italian roots of the brand. It looked fun, gai as they say in France and created movement and energy while portraying all the cultural innuendos that common life in Italy exudes, including Sofia Loren.
The build up to the purported November 22 #DGTheGreatShow event included an online video teaser campaign of three different videos launched on November 18th on the brand's Weibo account. It included a female model dressed in D&G, eating various Italian foods and with a male voiceover translation making apparent sexual references which clearly offended many. In their own way, it probably sounded cool and funny, coherent with the brand's values, to Stefano and Domenico, but it created bee nest mayhem to the incredibly connected and mobile Chinese luxury customers. They got in fights, exchanged profanity and ultimately brought the designers to their knees, requesting for an apology or duibuqi as they say in Chinese.
Now I can understand Stefano Gabbana trying to defend himself (minus the brown pictures) and the D&G social media team trying to deflect the news, but in hindsight going head to head with 1.3 billion people was a tough scenario. Impossible. It's like Italy declaring war against the United States during World War II. Impossible! But they tried it, and failed. Their apology did not feel sincere, the tension was palpable, they didn't want to be there, the backdrop surroundings looked austere and nervous and the apparent hurried preparation once again did not convince what is potentially going to be the world's largest luxury market by 2025. End of Lesson number 2.
But this is not the end, and is only the tip of the iceberg for all companies seeking to do or increase their business in China. The Chinese customer wants and demands respect, but is unforgiving. The Chinese luxury customer is gaining experience through its own purchases, traveling to the major fashion capitals of Paris, Milan, New York and Tokyo. Not just once a year, but sometimes up to 6 or 7 times. The middle class is rising and able to purchase more premium and luxury type goods. Millenials are upwardly mobile and demanding a more personal connection with western brands. They are demanding a more individual, fashion conscious and premium made in Italy, made in France etc. style of product, at the appropriate price BUT DEMAND MARKETING STYLES WHICH SPEAK TO THEM DIRECTLY AND SINCERELY, IN THEIR OWN LANGUAGE AND IN RESPECT OF THEIR CULTURE.
Doing business in BRIC markets, especially China, requires a more glocal approach to management style and the humility in delegating authority to trusted local managers who can communicate the values and DNA of the brand while respecting local customs, traditions, history and current trends. Lesson learned, hopefully, with humility and respect, by a company who needs to relook not only their external actions but apparently also their internal management style, respecting even their own employees while intelligently entering international markets, all in the name of creativity. A good dose of calm, introspective analysis and new intelligent beginnings could allow Dolce&Gabbana to take steps in the right direction.
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