Italian_Apparel_Benetton

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Information about Italian_Apparel_Benetton
Education

Published on December 2, 2010

Author: samwise

Source: authorstream.com

Slide 1: When Luciano, eldest of the 4 siblings, was only ten years old, his father passed away leaving the siblings to find work to take care of their family. In 1965 The Benetton Group was established. Giuliana was in charge of design and production, while Luciano took on the marketing and sales Brothers Gilberto and Carlo served as accounts manager and head of production respectively. By 1969 the business was very successful , they went ahead and opened their first shop in Belluno, and soon after opened a second store in Paris. The Group soon expanded from knitwear into cotton and denim clothing, making them a leader in both women and men's casual wear. Their technique of dying their items at the last possible moment to stay ahead of fashion trends kept them one step ahead of their competitors How Benetton became Benetton?? From left to right: Carlo Benetton, Giuliana Benetton, Luciano Benetton & Gilberto Benetton. Slide 2: In 1974, Sisley became a part of the brand portfolio. In the early 1980’s ,the group opened its stores in US & Japan and in the late 1980’s in East Europe and former Soviet Union Market. In 1988,Benetton group was listed both at Milan, Frankfurt Stock Exchange and in 1989 at New York Stock Exchange. Benetton Store in Tokyo,Japan Benetton Store in New York How Benetton became Benetton?? Slide 3: By 1990s Benetton Group became a global company present in 120 countries. At present,Benetton has 32 factories, of which 27 are in Italy, and license agreements in 13 countries. Benetton has a network of around 6,300 stores in 120 countries, generating a total turnover of over 2 billion euro. Major revenue still come from Europe especially from home country i.e. Italy and Germany. How Benetton became Benetton?? Slide 4: What falls into Benettons basket as of now? Brands like United Colors of Benetton, Undercolors of Benetton, Playlife and Sisley . Today Benetton manufactures clothing, sports equipment, footwear, bags,perfumes and accessories. They offer clothing for men, women and children. Slide 5: Benetton Group now accounts for less than one-quarter of the family's corporate empire, which had sales exceeding $16 billion as of 2008. The rest is made up of a clutch of different businesses a catering company called Autogrill that is 59% owned by the family. In Italy, their holdings include stakes in the main business newspaper, the Pirelli tire company, Florence airport, an investment bank and the firm that manages the nation's 13 biggest railroad stations. Another major asset is the highway-construction and management company Autostrade, which runs more than 2,100 miles (3,400 km) of toll roads, including the Italian half of the Mont Blanc Tunnel. Some of the investments have done very well; others have tanked. The family lost several hundred million dollars with an ill-timed investment in Telecom Italia at the height of the Internet bubble,acquisition of several sporting-goods companies, including Prince tennis rackets and Nordica ski gear, which was sold. In 2005, Alessandro Benetton, a Harvard Business School graduate & son of Luciano Benetton was named deputy chairman of the company Benetton Family .. Alessandro Benetton son of Luciano Benetton Slide 6: Advertising Tradition of campaigns centered on images intended to promote peace, tolerance, multiculturalism and to challenge stereotypes. Through posters, billboards, ads in the media and their own magazines, Benetton has tried to take its message to a global audience. Various Benetton Ads across the years Slide 7: From 1972, Benetton started advertising until 1982. Benetton's campaigns were very much like any other casual wear brand for young people. The billboard and magazine ads were pictures of simple, realistic representations of groups of young, professional models wearing Benetton clothes In 1984, Benetton hired photographer Oliviero Toscani as their creative marketing director. Across the span of his 17-year employment with Benetton, Toscani used such controversial subjects as AIDS victims, birds covered in oil as a result of a spill, a newborn baby still covered in blood from birth, and boats overflowing with refugees Photographer Oliviero Toscani & some of his Benetton snaps. What was so unique about Benettons ad and who was behind it? Slide 8: In mid 1980’s and 1990’s,the brand was picking up steam across the world, and their advertising campaigns continued to spark controversy and earn praise. Benetton and Toscani won awards at the Cannes Film Festival, and several Grand Prix awards for best poster, among many others. Their campaigns have introduced new words in the advertising language, words such as ‘shockvertissement’ and ‘reality ads. Slide 9: What were the Controversies caused due to Benetton ads Benetton was forced to withdraw the ads from certain countries like the U.S., France even its own home country Italy due to the controversy they caused. The handcuff ad caused a commotion among US blacks. The black man was interpreted as a criminal and the white man as a representative of law. Many saw the picture as openly racist. In 1995 Benetton was forced to pay $28,500 to AIDS patients in France, after a Paris court ruled that the “HIV Positive” campaign was “an abuse of freedom of expression and a provocative exploitation of suffering.” Slide 10: Photographer Toscani worked for two years to do portraits of the death row inmates, in which he visited death rows in several American prisons. Benetton lied to officials and said they were from Newsweek, and that they were sponsored by the National Association of Criminal Defense Lawyers. Benetton kept the details about the campaign project hidden. Benetton believed the focus of the ads was to show the public the reality of capital punishment, so that no one around the world wiould consider the death penalty neither as a distant problem nor as just news. But the families of the victims and many victim advocacy groups were outraged and accused Benetton of “taking convicted killers and romanticizing them while ignoring the suffering of the victims and their survivors”, and “using the killers to sell sweaters at their expense.” The groups and the families of the victims had a great deal to say about the travesty Benetton had committed in their eyes. They also called for a boycott on all Benetton products. Controversies caused due to Benetton ads Slide 11: Other Controversies caused due to Benetton PETA is currently running a campaign against Benetton due to their use of Australian wool in their clothing. This is due to the controversy in the process of mulesing sheep. In order to reduce cost, in 2003 Benetton ordered 15 million RFID labels to be sewn into the garments during the manufacturing process. Radio Frequency ID chips embedded in clothing to track inventory. But Consumers Against Supermarket Privacy Invasion and Numbering (CASPIAN) claimed that ‘Benetton could easily link your name and credit card information to the serial number in your sweater RFID reader device, the sweater could beam out your identity to anyone with access to the database -- all without your knowledge or permission.’ Slide 12: Why was Benetton unsuccessful in a huge market like USA? By early 1993, Benetton had continued to close stores in the United States for production and marketing reasons.It ceased operations at the Rocky Mountain plant in North Carolina. The Benetton style of advertising only drew criticism in the USA. Sears, Roebuck and Co., an American chain of Department stores ended their contract with Benetton. It was due to threats for a boycott, threats of a grant withdraw for 13 million, and the outrage of Sears chairman Arthur C. Martinez. Martinez decided to ban the new Benetton USA clothing line. The contract signed in 1998 was for multiple-years, and carried Benetton products in their 400 stores. Sears also said that the advertising campaign was inconsistent with what Sears has come to represent and is inconsistent with the customer base they serve. The loss of Sears contract to Benetton is estimated at around US $100 million. Benetton even offered Sears the power to review and approve any of their future ads, but Sears still declined the renewal of the contract. As many of the Benetton ads were banned in US, Benetton still struggles to be considered as a ‘brand’ in the US. Also Benetton faces tough level of competition from well established US brands and European brands like Inditex (Zara), The Gap, H&M, Mango, Tommy Hilfiger, Esprit etc Slide 13: What other things Benetton did besides clothing? Benetton – F1 The Benetton Group entered in Formula One as a sponsor company for Tyrrell in 1983 The Benetton team is best known for its success with Michael Schumacher, who accounts for 19 of the team's 27 career victories and their 2 drivers' championships In 2000 the team was purchased for the 2001 season. In 2002 the team became Renault F1. Slide 14: Sport Sponsorships Benetton Group has sponsored the rugby, basketball and volleyball teams in Treviso for many years, highlighting Benetton’s profound link with its roots and its hometown in competitive and social contexts For the Group, sport and business have the same philosophy: passion, challenge, competition and results. Over the years, this has translated into numerous victories, thanks to which Benetton Rugby has won 15 league championships, Sisley Volleyball 9 and Benetton Basketball 5. Slide 15: In addition to their clothing lines, Benetton diversified into a variety of other enterprises through Edizion Holding. Acquisitions included Rollerblade, Prince tennis rackets, Nordica ski boots, Kastle skis, and Asolo hiking boots. Benetton, along with partners, also acquired Euromercato, Italy's leading superstore chain and interests in GS-Autogrill markets and restaurants. Other product lines included watches, stationery, cosmetics, linens, eyewear, books, the Twingo Benetton car (in collaboration with Renault), and a line of pagers through an agreement with Motorola. Other Things done by Benetton besides UCB Slide 16: IT'S MY TIME Its a democratic campaign, open to the world and its young people, in perfect Benetton tradition The It’s My Time campaign offers young people around the world a means of sharing their opinions, as well as a “place” to be noticed and a dream to aspire to. Through the open culture of social media, the blogosphere and citizen journalism, it promotes a radical freedom, enabling them to make the leap from objects to subjects. Benetton is giving an open invitation to take part in a revolution from the bottom, from one to many, that is both collective and individual. To share their tastes, free the spirit of aggregation, and find like-minded friends Slide 17: Sales of core products by brand (%) as of first half of 2010 Slide 18: What is the level of competition Benetton is facing ? Slide 19: What Benetton has been doing in India? Entered India in 1991-92 as a joint venture with DCM Group, now a 100 per cent subsidiary. 140 United Colors of Benetton shops in 45 cities. Brand Sisley also launched in India in 2006. Manufacturing unit in Gurgaon, sourcing also done through contract manufacturing to vendors. India used as a manufacturing hub for sourcing apparel for other countries. Mumbai, 18 September 2007. Benetton Group and Trent Ltd., a Tata Group Company, joined forces in a strategic partnership for the Sisley brand’s commercial expansion in India Trent will open and manage a number of Sisley stores in India’s major cities. Slide 20: What is Benetton's Strategy ?? One of Alessandro's, Deputy Chairman, priorities has been to push Benetton more deeply into international markets with the help of strong local partnerships. In the first half of 2009, Benetton opened 95 new India outlets, despite the economic crisis. In Mexico, the partner is the billionaire Carlos Slim and his Sears Mexico group. Under a deal signed in 2008, Benetton aims to open 250 new standalone outlets and boutiques in Sears stores in Mexico. Alessandro is also targeting other Latin American countries as well as Turkey, Russia and China as significant future sources of growth. Conspicuously missing on this list is the U.S.; Benetton recently moved its U.S. headquarters from New York City to Miami, to be closer to the Latin American. Slide 21: The company's experience with nonfamily management hasn't been an absolute success. The first outside managing director, who came from automaker Fiat, served just three years before leaving, together with the chief financial officer, in 2006. A new CFO brought in from Burberry lasted just 21 months. As well as putting together a new management team, Alessandro has also sought to delineate more clearly the roles played by the family and by management. The new managing director, Gerolamo Caccia Dominioni, comes from Warner Music, while the current CFO, Alberto Nathansohn, jumped this year from luxury jeweler BulgariAlessandro Benetton is the 2nd generation, to be a part of the family business. Will the future UCB be managed by a Benetton ? Only time can answer this question as on now.. Will a Benetton run Benetton? Alessandro Benetton with his father Luciano Benetton Slide 22: Thank You

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