Dolce & Gabbana plans to remain independent, even as the Italian fashion house claws back sales lost in pandemic and bungled ad campaign.
A private-held company with creative freedom at heart, D&G has become a favorite among investment bankers looking for potential deals but CEO Alfonso Dolce says they have no intention of changing stand-alone status.
“We want to stay true and creative,” said Dolce, in an interview. It’s crucial for the company that “we plan our own strategy from shop openings to runway shows as well as how we relate long-time workers or clients.” Sales are expected to climb back up this fiscal year, buoyed by North America alone which accounts for 50% of Dsquared2’s global revenue after dropping 15%. The firm has yet fully recovered from its self-inflicted public relations nightmare in China—the world’s fastest-growing market when it comes to luxury brands.
The company’s blunder in China is not the first time they’ve faced a consumer backlash. From posting videos of models eating with chopsticks irritatingly to questionable ad campaigns, Dolce & Gabbana has had its fair share of problems that have incited negative sentiment from their target audience- before even getting there!
Some of the most successful and iconic fashion brands in China are having a difficult time making new acquaintances. After an incident last year, they have realized that it is not enough for their local teams or creatives to stay within boundaries set by Europe; there needs to be someone with deep knowledge of Chinese culture who can negotiate its way through any obstacle thrown at them online—someone like Coco Chanel (and we all know what happened after she tried). They say sales rebounded 20% from 2017 but remain lower than before when missteps occurred due mostly because customers stuck around.
The company has been working to make amends for its past mistakes. The Italian fashion house created two new partnerships and participated in China’s International Import Expo, where they showcased their commitment towards the country by displaying goods from all over Asia including Japan and South Korea
The firm currently employs nearly 1,200 people throughout China with plans of opening up another boutique location soon which will be located on Citic Square; an area known as ” Shanghai’s flagship among shoppers,” according to Dolce.
With online shopping on the rise, Dolce & Gabbana is doubling down in physical stores. The company plans to open new locations at airports across Europe this year and it’s also looking for growth from jewelry markets as well other luxury goods like watches or beauty care items which have never been its focus previously but are becoming increasingly important now due to their increased exposure through airlines that allow them into more parts of our world without having any need whatsoever go outside ones home country just because there isn’t another store within a reasonable distance.
Dolce & Gabbana is not the only storied Italian fashion brand that has eschewed a larger rival. Brands such as Giorgio Armani, Prada and Salvatore Ferragamo are still going solo but their ability to remain stand-alone enterprises may depend on setting things right in China according Solca Group’s Chief Executive Officer Antonio Dolcetas
A new project called ‘Dolce&Gabbana Casa’ will open about 50 dedicated shops within three years which aims at making them an “ideal bridge between fashion design” by way of connecting brands together through different channels while also creating opportunities for consumers who want more than just clothes or shoes.
The luxury fashion brand Dolce & Gabbana is betting on an independent future after their stumble in China. They are looking to take a step back from the region, but at the same time, they have not abandoned it altogether. This could be because of how much money can be made there- or lost. As long as you know what your risks are and manage them accordingly, then success should follow suit! How do you feel about this strategy? Do you think that by abandoning China completely would leave too large of a hole for other brands to fill? Comment below with your thoughts!
The China Luxury Market in 2026: What Has Actually Changed
When D&G cancelled its 2018 Shanghai show, many Western executives assumed the backlash would fade. It has not. Seven years later, the brand’s store count in China sits at 47, down from 58 before the scandal. Stefano Gabbana quietly stepped down as chairman in December 2025. The debt restructuring talks for 450 million euros are ongoing. This is what a reputational crisis looks like in slow motion.
The wider market has shifted around D&G’s stagnation. China’s luxury goods market reached USD 65 billion in 2025 and is projected to grow to USD 69 billion in 2026, on its way to USD 93 billion by 2031. That money is there. The question is which brands capture it.
Here is the shift you need to understand. Chinese consumers are not buying Western luxury the same way they did in 2015. A 2025 survey found that 78% of respondents now prioritize a product’s utility and craftsmanship over its brand name. Another 64% actively seek out niche or independent brands over established international houses. The “buy the logo” era is over.
Driving this is Guochao 3.0, the third wave of the national pride consumption trend. The Guochao market is projected to exceed three trillion yuan by 2028. Searches for “new Chinese style outfits” on Xiaohongshu have accumulated 3.48 billion views. Brands that treat Chinese aesthetics as a seasonal gimmick are spotted immediately and called out online.
The platform landscape has also changed. According to 2026 Hurun data, 61% of high-net-worth individuals in China regularly use Xiaohongshu as their primary source of brand discovery, 13 percentage points above Douyin. If your brand is not present and credible on these platforms, you simply do not exist in this consumer’s consideration set. A practical Xiaohongshu marketing guide will show you how different this platform is from Instagram: the algorithm rewards authentic content, not paid reach, and users flag inauthenticity fast.
What does recovery look like? D&G tried virtual idols on Douyin, Qixi capsule collections, and social media spend. Sales rebounded 20% from the post-crisis low, but never returned to 2018 levels. The lesson is that tactical campaigns cannot substitute for genuine cultural commitment. Understanding Chinese consumer behavior from a cultural perspective is the baseline, not a nice-to-have.
Women account for 54% of China’s luxury goods market in 2025, and the beauty and personal care segment is the fastest-growing category in luxury, projected at 5.52% CAGR through 2031. The consumer making the purchase decision is most likely a younger, urban, highly online woman. If you want to understand what this consumer expects from a luxury brand in China, reading about China luxury fashion strategy in 2026 is a useful starting point before you plan your next campaign.
What This Means for Your Brand in China
- Cultural respect is not a PR task, it is a product decision. Before any campaign, have Chinese cultural consultants review creative assets, not after the brief is approved. The D&G video was cleared internally. That is the problem.
- Build on Xiaohongshu before you need it. 61% of high-net-worth Chinese consumers use it for discovery. An account with 18 months of genuine content is a brand asset. An account you create after a crisis is a press release no one reads.
- Guochao is not a trend to surf, it is a standard to meet. Chinese consumers in 2026 expect brands to demonstrate real knowledge of Chinese culture: specific regions, historical references, living designers. Generic “inspired by China” content scores worse than saying nothing.
- Plan for the long recovery window. D&G’s numbers seven years post-crisis show that trust, once broken in China, rebuilds slowly and incompletely. If you are entering the China fashion market as a premium brand, build the cultural competency before the launch date, not after the first negative hashtag.
