Alessandro Agostini Steven Braun

Jean-Christophe Gaudeau

Takuto KakeyaDmitry Mariassov

Best in France – Benetton Group

Introduction

The Benetton Group is present in 120 countries around the world. Core business: clothing Brands:

United Colors of BenettonSisley The Hip SitePlaylifeKiller Loop.

Key Figures

Production: 100 mln garments p.y.

Over 90% of them produced in Europe

Network: 5,000 stores around the world

Turnover: 2.0 billion euros

Core Values

UCB - Products

LicencesUnited Colors of Benetton is broadening its horizons, expanding the brand into new areas of merchandise. Benetton's latest creations range from Home Collection, kitchen accessories, terrycloth line, to baby products, new toiletries line, perfumes and watches.

Undercolors is an extension of the Benetton brand, featuring underwear, beachwear and sleepwear collections, as well as accessories for women, men and children.

United Colors of Benetton UCBA global brand, and one of the most well known in the world, has an international style that combines color, energy and practicality. The womenswear, menswear, childrenswear and collections offer a total look for everyday, for work and for leisure, in the city and outdoors.

UCB - Products

DesignA staff of 300 designers from all over the world based in Treviso creates the collections for the casual brands United Colors of Benetton, Undercolors, The Hip Site, Sisley and for the sportswear brands Playlife and Killer Loop.

ProductionThe Benetton production system, coordinated by a high-tech facility at Castrette (Treviso, Italy) is capable of turning out over 100 million casual and sportswear garments every year. Over 90% of production is carried out in Europe and 50% of this is in Italy.

FranceAfter the shut down of a production plant 5 years ago and the layoff of several hundred workers no more production facilities in France.

UCB - Clients

2 different client typesFinal clients buying in proprietary shopsFranchisers buying for reselling in their shops

France

Present since the early 80s35 Benetton Proprietary Stores

Need for flagship megastores to compete in the current marketEnormous acquisition and maintenance costs

200 Franchise Stores130 ca. Mln Eur Sales10 ca. Mln Eur Profits

Constraints

No major constraints were identified at the beginning of the French adventure.France and Italy are fairly similar markets and follow similar rules.Major constraint nowdays are communication issues between headquarters and subsidiary.

Benetton is still a family business. Family and management sometimes have different vision and objectives

Adaptation

Benetton follows a common HR policy in the world.It is likely that positions of responsibility will be held by Italian expatriates to ensure a common identity.Frequent training are held in Benetton’s home town of Treviso.

Fabrica I

Fabrica is Benetton's communication research centre, created in 1994 from Benetton's cultural heritage. Fabrica is housed in a stunning building by Japanese architect Tadao Ando and is situated outside Treviso. In its role as an applied creative laboratory, Fabrica experiments new forms of communication, following two parallel guidelines: a hands-on approach to training and interactivity. In terms of both the projects and cultural identity, whose plurality is guaranteed by the mix of people from countries with different languages, cultures and attitudes.

Fabrica II

Guided by an international team, which also supervises its strategic, cultural and communication policies,  Fabrica supports as well the creative development of young artists/researchers from all over the world. Following a careful selection process, they are invited to develop concrete communication projects in sectors ranging from cinema to graphics, from industrial design to music, from publishing (Colors Magazine and other publications) to new media and photography, under the direction of some of the main players in these areas.

Key Costs/Benefits

France is one of the biggest European markets.The presence of Benetton is merely commercial.No major differences in the cost structure between France Germany or Spain.The structures are fairly small, with 30 people on site and up to 200 salespersons.

We thank

Alberto Bartalozzi (Admin and Finance Manager, France)alberto_bartalozzi@benetton.it