TOKYO, April 21, 2008 (AFP) - Italian casual clothing brand Diesel on Monday April 21th unveiled a new flagship store in Tokyo, its biggest in Asia, setting its sights on hip baby boomers and ageing fashionistas amid a shrinking youth market.

Renzo Rosso, founder and president Diesel in the new flagship store in Tokyo - Photo : Yoshikazu Tsuno/AFP

The three-floor store will open its doors on Wednesday in the glitzy shopping district of Ginza, already home to some of the best known names in luxury goods.

Despite a population that is both shrinking and greying in Japan, a flagship store in Tokyo was a must for the luxury denim and casual fashion brand, said Diesel president and founder Renzo Rosso.

"Japan is the most important market in the world," he told AFP at a preview of the new store.

Mindful of the dwindling spending power of Japanese youths and 20-somethings, Diesel is bringing its casual-luxury "Black Gold" label to Asia's largest economy, targeting older shoppers with deeper pockets.

Diesel hopes to narrow the generational gap in Japan with the new label catering to older, more sophisticated consumers, Rosso said.

It also plans to launch lifestyle products for its Japanese market, following in the footsteps of Giorgio Armani who last year opened a flagship store in Ginza with a floor exclusively for furniture.

Diesel has expanded into home textiles in Italy and may do the same in Japan, Rosso said. It also plans to open a store next month in Hong Kong.