Why Dolce & Gabbana’s China blunder could be bad business

Why Dolce & Gabbana’s China blunder could be such a disaster

Dolce & Gabbana needs to clean up the mess it made in China, or get left out of the country’s luxury boom.

Alienating customers is always bad for business. But for luxury brands, pushing away Chinese shoppers is a disaster. Kering (KER), the owner of Gucci and Alexander McQueen, said that sales in China soared 30% in the first half of 2018. French fashion house Hermes credited sales in the country for record profits over the same period.

D&G is a private company that does not share its sales figures with the public. Now, D&G has to figure out how to win back Chinese consumers. Some didn’t find the apologies sincere. Chinese-French model Estelle Chen, who withdrew from the show, wrote “you don’t love China, you love money,” in an Instagram post tagging both the brand and Gabbana directly.

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