The Dolce & Gabbana group plans to scale back its Japanese operations by giving up on its D&G brand, which targets a younger crowd, and market only a higher-end label instead.

This comes as the Italian fashion house moves to concentrate its business resources in markets showing growth potential, such as China.

The group now operates 18 D&G stores in Japan, selling T-shirts in the relatively affordable range of 10,000 yen to 20,000 yen that have a following among hip shoppers in their 20s.

Sales are growing, but the lower prices have left Dolce & Gabbana with thin margins alongside rising personnel costs. It will shutter all 18 D&G stores next January.

Instead, the group will have Japanese operations specialize in its Dolce & Gabbana label, which offers such items as suits priced around 200,000 yen to 300,000 yen. The group already operates 16 Dolce & Gabbana stores in Japan catering to well-heeled customers.

These higher-end stores account for 70% of the roughly 10 billion yen in annual sales generated by the Japanese operations.

Related Articles
Quando Quando Quando by Dolce & Gabbana
"Quando, Quando, Quando" marks the directorial debut of Domenico and Stefano, and they have released behind the trailer as well as behind the scenes footage of their filming process.