This project delves into the various distribution channels that Diesel uses as part of its operational marketing. Each channel is critically analysed in it’s effect on the Diesel brand.
Diesel distributes its products across 3,500 points of sale globally (Leitch, 2022). It is present in over 80 countries, and has approximately 400 stores operating through a direct retail channel (Linkedin, n.d.), while the remaining points of sale are through indirect channels. Their products are distributed both in physical stores and online.
Diesel uses a multichannel distribution strategy, wherein they employ various direct and indirect channels, offline and online.
The launch of an omnichannel model, MOON, in 2020, was designed to upgrade the company’s digital retail operations, to offer consumers a smooth shopping experience. With this, all of Diesel’s global stock was integrated, with the aim of a frictionless shopping experience involving increased service levels including click & collect in all stores. The company also indicated an intention to personalize the digital shopping experience (OTB, 2020). These reports indicate Diesel's ability to stay competitive in the evolving retail landscape and capitalize on the increasing consumer shift towards online shopping.
The recent strategy appears to be making the brand more exclusive, through a selective and focused distribution strategy, related to their new positioning. The new positioning of Diesel as an alternative luxury brand (Leitch, 2022), is reflected in the selection of flagship and pop-up store concepts, multibrand boutique assortments, and the NFT launch.
Overall, there seems to be price consistency across the channels, as well as a consistent brand image and experience in line with the new positioning. They maintain control over their brand identity, ensuring a cohesive brand message. However, they adjust the depth or breadth of their offerings based on each channels capabilities, customer demographics, and competitive landscape. Diesel's distribution strategy engages customers across various touchpoints, maximising opportunities to build brand equity.