From Margiela to Diesel: Renzo Rosso on what’s next for OTB
The founder and chairman of the Italian luxury group sits down with
Vogue Business to discuss its future.
BY
LUCY MAGUIRE
September 30, 2024
Upon entering OTB Group founder Renzo Rosso’s Milanese home, you’re a long way from Fashion Week, even if you’re just a few floors above the city centre, and a stone’s throw from the shows.
“Come and see my flowers,” Rosso says, directing me to the balcony overlooking the Milan skyline, partly obscured by pots overflowing with an abundance of pink blooms and Mexican feather grass. We sit down for breakfast at his dining table, lined with photos of his family, as he leans back, wearing a plain black hoodie — casual for one of Italy’s most prominent luxury conglomerates. But, Rosso stresses, OTB is “not a usual luxury group”.
Only The Brave, commonly known as OTB Group, was founded in 2002 by Rosso as a holding group for his brand Diesel, which he founded in 1978. The group, which now operates Margiela, Marni, Jil Sander and Viktor & Rolf, is a fraction of the size of rivals LVMH and Kering, with revenues of €1.9 billion in 2023 (versus €86 billion and €19.6 billion, respectively). But its cultural impact is outsized: from Margiela’s John Galliano to Diesel’s Glenn Martens, its creative directors are some of the most talked-about talents in fashion.
Currently, rumours are swirling about its future plans, as the press
speculate that Galliano will depart Margiela. Rosso doesn’t confirm rumours of the creative director change, but is honest about the reality of fashion’s musical chairs. “It is only normal that talented designers are courted left and right, and we have the luck to have some of the most brilliant ones on the market in this moment,” he says. “They are real rock stars.”
Galliano has been with Margiela for 10 years. But it was the recent Margiela Artisanal Spring/Summer 2024 couture show in January that underlined his cultural impact, and also boosted the business, Rosso says. Tonight, the house will screen a film about the making of the show. “John, his genius talent and his storytelling skills are unique and captivating. But if you enter a Margiela store, you can feel how different and modern the product is, the technicality and the passion that is infused in every piece is unbelievable,” Rosso says. “We’ve gained more and more respect and the business is growing across all geographies, with the brand continuing to build its iconic status.”
OTB had a “fantastic” year in 2023, bolstered by strong shows across its brand stable. Full-year revenues were up 10.2 per cent compared to 2022. Though amid the
luxury slowdown, 2024 is more challenging, Rosso acknowledges. “This is a difficult moment worldwide for everyone, the most challenging geography being China where everyone is seeing negative signs,” he says. “The main problem is footfall in stores, also across Europe and the US. Even in Japan, where OTB is always growing, footfall is starting to be a point of attention,” he adds.
How fashion executives navigate such an environment matters. “We continue to work with passion, heart and soul, trying to show our point of difference and focusing on product, creativity and beauty,” he says. “We are moving on a few different fronts, increasing our investments in retail globally to offset the problems wholesale is facing.”
OTB is growing “new, promising” markets like the Middle East (it just signed a joint venture with the biggest luxury player in the region, Chalhoub Group), while investing in expansion in South Korea (which he notes is “super inspiring” in terms of trends) and North America, which continues to be a strategic market and the one with the “highest purchasing power”, Rosso says. It’s also looking to Mexico, which he says has “interesting potential”, and Canada.
In 2023, OTB saw growth across its portfolio, Margiela grew 23 per cent, Diesel was up 13 per cent, Jil Sander 17.3 per cent and Marni 8 per cent. Rosso appointed his son Stefano Rosso, also chairman of Margiela, as Marni CEO six months ago to help drive further growth at the label. When we meet, it’s the morning after Marni’s up-close SS25 show, where models interweaved between singular chairs, each wearing expertly cut cotton gowns and separates. The proximity of the guests to the models highlighted the technique. And it was
described by
Vogue Runway as some of creative director Francesco Risso’s finest work during his nine-year tenure at the house. Rosso has read the positive reviews.
“I still find it incredible to have four houses of the group showing in the same fashion week, and all of them doing very, very well, for two seasons in a row,” he says. “All shows were great [so far], both for the spectacle and for the quality of the collections, and we’ve had amazing returns from the industry.”
Competing in the luxury landscape
OTB planned to IPO this year, which Rosso has openly discussed at length. But he halted plans when the macroeconomic climate faltered. Now, he’s sure he wants to forge ahead, but unsure when. “I’d still love to be a public company. I want to be transparent, I want my employees to become my partners. And it’s also about succession, preparing for my family to take over,” he says. “In any case, all companies in our industry are losing on the stock market today, so we will wait for a better economic moment.”
Some of Rosso’s older children work across OTB, too. Besides Stefano, mentioned above, his son Andrea Rosso is sustainability ambassador at group level, while his daughter Alessia Rosso is marketing manager at Diesel North America. Rosso’s youngest, Sydne, aged eight, also works indirectly for the business, he jokes, in keeping Rosso up to date on the latest trends among Gen Alpha. Two years ago, he learnt about Roblox at home and told his teams to look into it for OTB. Rosso is passionate about innovation and is currently eyeing the potential of AI. “I know people are a bit afraid of some sides of it, but I truly see only the incredible potential of this new technology and how it could make our lives easier,” he says.
Ordinarily, luxury brands churn out collections, shows, capsules and activations at breakneck speed, often with major show concepts that prioritise entertainment over clothes. (
The Washington Post coined it
“the Marvelisation of fashion”.) But Rosso allows his designers to take risks (in the case of Martens’s Diesel), or take their time. Galliano took 12 months to create the last Margiela Artisanal show and collection, with excellent pay-off.
“Our philosophy will continue to be that of working on the product and on creativity, not on entertainment,” he says. “I always say that a luxury product is made 50 per cent of creativity and design, and 50 per cent of craftsmanship, and we must ensure that we transfer the unique skills of ‘Made in Italy’ to a new generation of talents,” he says. OTB created its own academy called ‘Scuola dei Mestieri’ to educate new artisans and hopefully hire talents upon graduation.
Courting creative talent
When selecting a creative director, Rosso himself courts possible talents, sometimes for years. “I am personally involved in the selection of our creative directors. We meet, we spend time together, it’s like a courtship,” he says.
“Sometimes I ask them to design a collection, fragrance bottle or the interior of a store. And I take the amount of time needed to find out we are a match. I guess this is also the reason why our creative directors usually stay long in their position, because we have learnt to know each other even before they started working for our brands. Our creative directors and style offices are free to work on limitless creativity, their work for me is pure art.”
Since Martens’s appointment in 2020, Diesel has
undergone a turnaround, boosting its Gen Z user base to 36 per cent via his edgy, sexy take on denim and accessories. Its 2023 sales growth was led by the 1dr bag and the women’s collection.
Many feel Martens is in prime position to take over Margiela, should Galliano ever step away. Martens earlier this month departed Y/Project, where he had been pulling double time as creative director since 2013. Rosso draws parallels between the two, when discussing Martens’s success at Diesel.
“It’s really thanks to Glenn that [Diesel] is becoming so cool, so fantastic,” Rosso says. “Glenn is a couturier, not just a designer. Like John Galliano, couturiers have a different way of designing. Every single piece has a story to tell. Glenn was able to do what he did with the brand also because he could work with me, who founded Diesel more than 40 years ago, and still know its DNA and want to make it relevant to today’s generations. So I guess you can say he made what I was hoping the brand would do, happen,” he says. “I also want to praise the work of the whole Diesel team, who embraced this challenge with passion, putting our unique and incredible know-how to work.”
“It’s nice to have a fairy godfather in the company,” Martens says of Rosso, speaking from the Diesel studio, the day after my breakfast with Rosso. “We talk a lot and we have regular dinners every two or three weeks. I feel a bit more comforted because some of the decisions I’ve made are very extreme,” he says. “Renzo is a great businessman, but he really goes on gut feeling, too. It means he has an emotional connection. There’s a real no bullsh*t mentality. There’s not a lot of hierarchy [at OTB].”
With Martens, it’s good to expect the unexpected. When asked what he’ll do with his free time post-Y/Project, and how he responds to the swirling rumours, the designer replies without skipping a beat: “My first focus is on chickens. I really want to have chickens. I’m actually planning to buy a little countryside house outside of Paris. My big stress is how do I get those chickens to survive when I’m not there? Because there’s foxes that might eat them. So this is my first focus. And then, we’ll see.”
After breakfast, Rosso’s day is back to back until late afternoon into the evening, with meetings, events and the Jil Sander show. After the Milan shows, he’s to head to Paris for Margiela’s film screening. As he finishes his avocado on toast, OTB chief sustainability officer Sara Betteghella arrives for his next meeting. It feels like my cue to leave. “No, no, stay, relax, have more coffee!” Rosso says with a smile, with the relaxed demeanour of someone who doesn’t have commitments all day. “We have time.”
Rosso may be relaxed, but he’s an executive always ready for evolution, inside and outside of the group. “Every year you have to pay attention because the market changes. What I’m doing today is not what I’m doing tomorrow. If you are close to the consumer you have to be ready for change,” he says. “I’m no genius, but thanks to my curiosity, my children, my teams, we will be there for what the market needs.”