We recently analyzed a case on "Diesel" store in our "Competitive Strategy" class. And learnt that one of Diesel's strategy is to price things really high to get rich customers. By making them very expensive ( and trendy on the fashion side and of course, long lasting), they let the customers have that notion of "I am special! Nobody else is wearing these cool jeans!". And there are people who want that.

So Diesel is growing and making a lot of money. But Diesel doesn't grow by attracting more and more customers, because if it does that, the whole "exclusivity" effect would go away and nobody would want to pay high price for a jeans everyone in town is wearing. It attracts the same high-end customers more frequently and perhaps increases the prices even more if there are too many customers who seem to afford the current level of price. What an idea on fooling the rich customers!

This Saturday, I went to a Diesel store in Maria Christina. And checked if the prices are indeed as high as I learnt in the class. Oh! no doubt! I checked a pair of jeans and it was priced just about 200 Euros! :)