Risky decisions, disruptive ideas and ambition to carry them out. The story of Renzo Rosso (Brugine, Italy, 1955) fits perfectly with the social story of the great entrepreneur, the self-made man who, in his case, began sewing his own jeans at the age of 15, then, at the end of the seventies, created Diesel, the firm that revolutionized denim and today is the owner of OTB (acronym for Only the Brave, in case there was any doubt about its speech of audacity and achievement), a conglomerate of luxury brands that has grown by double digits since the pandemic and in 2023 has invoiced almost 2,000 million euros, 10% more than the previous year. The difference between Rosso and the great entrepreneurship gurus is that his sphere of action is fashion, that is, an ecosystem practically monopolized by the greats. holdings (Kering, LVMH and Richemont), which own most of the famous firms and whose owners come from large business lines.
Rosso grew up on a farm, left university to work as a product manager in a jeans factory and it was not until 2002, at which time Diesel, his brand, was a global benchmark, when he set out to buy others. But before, and that is perhaps the big difference with respect to his competitors, he bought a factory: “I come from the product,” he will repeat several times during this conversation, “I started manufacturing and to this day I am still aware that a good product is is everything,” he explains via Zoom from his offices, dressed in his usual uniform, black t-shirt and necklace, that aesthetic between old rocker and creative businessman: “At the end of the nineties I wanted to experiment and launch the Diesel Style Lab line, a label that It mixed denim with luxury and avant-garde fashion. The factory where it was produced, Staff International, also made clothes from other brands such as Vivienne Westwood or Roberto Cavalli’s second line. They were not going through their best moment and in 2000 I decided to buy it to keep it afloat. “Martin Margiela also produced there and needed an investor, so we reached an agreement.” That was in 2002. In 2008 it bought Viktor&Rolf, in 2012 Marni and in 2021 Jil Sander, apart from other subsidiary companies ranging from Brave Kid, which produces children’s lines for luxury brands, to the legendary Hotel Pelicano or more recently, the factory leather goods company Frassinetti or the luxury footwear supplier Calzaturificio Stephen (which makes, among others, the famous Margiela Tabi). In addition to controlling the (few) large avant-garde fashion brands that are still afloat, it has now set out to control some of the Italian suppliers that guarantee its survival.
You will be happy after seeing the success of Galliano’s collection at Margiela last January. When you hired him, in 2014, it was a risky signing…
I was always clear about it with him. For me he is the best designer in the world, he is a genius. In the same way that I did not hesitate when I invested in the brand, because I knew Martin and for me he was a reference for what was important and the fashion that interested me, as the years went by I did not doubt that I loved him [Martin Margiela abandonó la firma en 2009 y John Galliano fue despedido de Dior en 2011]. To convince him I took him to the archive. He spent the whole day observing every detail, telling the story of each piece and at the end he told me: “Right now I would just like to work here.” I was not wrong. Margiela has been growing for years because John Galliano tells stories like no one else, but he also imagines and builds each product like no one else does. For this show he asked for time and we gave it to him, he spent weeks on each dress, but we knew it was going to be something exceptional.
The way fashion currently works, it is rare for the owner of a holding company to give time and, above all, creative freedom to its designers, but from the outside it seems that you do. And respect that each one works in a different city. Is there less pressure on OTB?
They are the ones who have the vision. A brand has to have a story to tell through creativity and a great product, an innovative product that tells that story. Our mission at Only the Brave is to provide designers with the necessary tools to make that happen, logistics, raw materials, commercial strategy… that requires time and a prior vision. For example, Jil Sander [Renzo Rosso la compró en 2021 a la empresa japonesa Onward Holdings] It continues to be very focused on know-how, on well-constructed garments; Nothing has changed, and if it has grown in the last year it is because it has elevated its proposal further towards luxury and we have created a strategy to make it so.
Margiela, Marni, Viktor&Rolf and Jil Sander, is your criterion for buying a brand that it is cult? Isn’t that a bit risky given the current situation?
It has to fit with OTB. And to fit in you have to create products that no one else makes and have an identity that no one else has. Consumers are not stupid, on the contrary; the client is increasingly intelligent, he is very informed; and although there is no specific profile, the customer of my brands knows very well what they are buying and why they buy it.
You talk about intelligent clients but it seems that global trends are increasingly having more weight on the catwalks. Do you think there is a lack of discourse and provocation in today’s fashion?
It is not our case. With Diesel, for example, we have always tried to associate what we did with the problems of the moment. Our campaigns from 20 and 30 years ago already talked about everything; of violence, of climate change… and with Glenn [Martens, su actual director creativo] It’s still like that. It is a brand that created a discourse through denim. All our brands have a very clear identity and a unique story. But I wouldn’t call it provocation, it’s trying to give meaning to the product. For me it always has to mean something, it has to be linked to reality in some way.
Your brands’ shows have become the most anticipated because different things always happen. Don’t you think there is too much “uniformization” now?
We are small compared to our competitors, who run brands that I admire, but with much larger business volumes. Our size allows us to focus much more on the product, not just the content or image. I come from producing in factories and that is what continues to interest me, things that are well made and different, that make a difference. This is what our clients are interested in: high-quality luxury garments with great design.
You are a firm defender of made in Italy, in fact 80% of your products are made in Italy, is it possible to channel the system?
We are dedicated to luxury, the idea is to produce excellence; We have to produce less and better while having good profit margins. Everything we do is aimed at that, at least and better. But sustainability is structural, it has to be in all layers of the system, and I am very proud of what we are achieving.
What have they achieved so far?
We have several initiatives included in the New Fashion, New System project. For example, more than half of the cotton we use at Diesel is already recycled or comes from regenerative agriculture, and we have achieved that 56% of the energy used in our operations comes from renewable sources. We also work by financing local factories so that their businesses are maintained and we offer training and work to new generations, because it is essential to maintain the value chain if we want to create quality products. Of course, we audit all our suppliers and know under what conditions everything is manufactured. It is not easy, because in reality it is not just about improving one or two factors. Being truly sustainable is a comprehensive change in mentality, and for that you have to surround yourself with people who know how to do it. And we have to invest a lot in technology to generate less waste, to be able to recycle materials…
What do you think of the emergence of artificial intelligence? Does it challenge creativity?
On the contrary. It is a fascinating tool. We have been implementing it for some time in almost all processes and we have agreements with universities to develop it. It is not going to replace anyone, on the contrary. It expands the capabilities of designers and craftsmen, who can see what can be manufactured and what cannot, for example. It’s about knowing how to handle it, knowing how to provide it with the correct information; Once you know how to use it, the creative possibilities multiply. Furthermore, thanks to artificial intelligence everything is much more efficient; There is less waste, fewer prototypes, less leftovers…
Experts say luxury could face a recession, what challenges do you face?
The world is in a complex and unstable situation, which I hope can be resolved soon and that, of course, has affected everything. We have many ambitions in Asia, specifically in China, because our brands have a large audience there, but until recently we did not have our own large points of sale, and that is essential, especially now, when we have to control the sales channel. physical. Actually I think that sales can fluctuate, but if you have something good to offer, something different, it is more difficult for there to be big changes. I am committed to increasing quality and reducing manufacturing volumes.
When you retire, how would you like to see OTB evolve? How would you like to be remembered?
I don’t know, I guess as someone who offered alternatives, who took risks to develop innovative projects in which he believed. OTB is and will be a team of very talented people who put creativity and craftsmanship at the center and who communicate in a different way. That will continue to be the case because taking risks and creating are the foundations of the company.
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