Benetton Family Essay Example

Benetton Family Essay Example Benetton Family Paper Benetton Family Paper a shoe manufacturer and distributor; Galli Filati S. p. A. , a producer of woolen yarn; and Columbia S. p. A. and Altana Uno S. p. A. , both licensed to produce and market under the Benetton trademark. To integrate group logistics, Benetton also acquired Azimut S. p. A. , Benair S. p. A. , and Benlog S. p. A. To enhance global production and marketing, Benetton built a factory in Argentina to add to facilities built the year efore in Brazil; acquired, incorporated, or sold marketing companies in various countries; opened stores in Warsaw, Moscow, and Cairo; listed on the New York and Toronto Stock Exchanges; planned to expand Benetton Cosmetics, which had operated in North America and Europe for the last three years, into the Japanese and South American markets; and entered into a joint venture with the Japanese trading company Marubeni, creating Benetton Shoes Corporation, to sell shoes in the United States and Canada. Negotiations also were made with Toyobo on joint plans to enter both the Japanese and Brazilian markets, and with Seibu-Saison to convert its license to a production and marketing joint venture. These developments were representative of Benettons strategy to first use licensees to gain wide exposure in new markets and then to convert the license into production and marketing joint ventures. Accordingly, growth also was accelerated by granting licenses to producers in noncompeting industries. The Home Colors trademark was developed by acquiring an interest in Eliolona S. p. A. , which was to produce linens under license agreements in Brazil and Israel and to sell them in European markets. A new joint venture called United Optical was formed between H. J. Heinz and the Italian manufacturer Anser to produce spectacles. Furthermore, W. I. D. E. Corporation was incorporated in the United States as a joint venture with Avendero S. p. A. to manage international forwarding and customs clearance operations. By 1989 exports rose to 65. 5 percent of total annual sales. To finance this expansion, Benetton aimed to attract investors in the United States, Canada, Japan, and Europe by making a capital issue of 24 million shares. In that year, Benettons holding company, Edizione Holding, reinvested its funds from the sale of financial services by buying Nordica, a ski equipment firm, for $150 million and soon acquired several other retail sports lines. Moreover, the trademark United Colors of Benetton was adopted. In the meantime, the Federal Trade Commission conducted a preliminary investigation to determine whether Benetton had violated federal statutes by failing to file as a franchiser but dropped the inquiry after Benetton asserted that contracts are negotiated by independent sales agents and that store owners pay no fees or royalties, even though they are required to follow stringent merchandising rules. In the late 1980s, Benetton gained additional competitive advantage by implementing global networking to connect sales and production. A oint-of-sale computerized program, which linked the shops to headquarters, was designed to handle order management, cost accounting, production control, and distribution support. Thus agents began booking 80 percent of each seasonal order six months in advance; the remaining orders were placed midseason and relayed to headquarters by computer. The point-of-sale program was replaced by late 1989, and Benettons decentralized operations were linked by a gl obal electronic data interchange network, which also included freight forwarding and customs applications. Although sales grew by 24 percent in 1990, Benetton lost $6. 6 million in the United States that year, and another $10 million in 1991, a loss of 28 percent since 1987. Thus in 1991 Benetton started to consolidate its stores in the United States as well as Europe, replacing the clusters of smaller stores with the megastore concept, which carried the full Benetton line. In addition, Benetton turned its marketing and sales efforts once again to developing markets in the Near and Far East and to Eastern Europe, and halved its dividend to have more funds for expansion and acquisition. In December, Benetton signed a joint manufacturing agreement with Alexanian in Egypt in light of plans to open 30 stores in that country, and in 1992, 12 stores were opened in Poland. A joint venture agreement was signed for manufacturing facilities in Armenia, which was to produce apparel for the Soviet market under the United Colors of Benetton trademark; future expansion plans came to a halt, however, owing to lagging productivity at this plant. To beat the worldwide recession and increase market share, in 1992 Benetton developed strategies to achieve the following goals: to improve operating margins, reducing prices by about 15 percent, increasing production volume, improving product mix, and taking advantage of the devaluation of the lira; to improve operating efficiency, reducing number of styles of its collection from 4,000 to 2,600, and acquiring and integrating the operations of four key former subcontractors; and to improve cash flows, refinancing short- and medium-term debt. The mix of items was improved by introducing sophisticated classic professional apparel through shops dedicated to these higher-margin product linesAnd for dress shirts, Di Varese for shoes, and Benetton Uomo and Benetton Donna for mature men and womenand by continuing to expand into the sporting goods market. By mid-1992, Benetton bought the remaining interest in Galli Filati and consolidated interests in four suppliers of woolen and cotton materials; now about 68 percent of the cost of production was represented by charges from subcontractors, compared with 87 percent in 1991. As a result, 1992 group sales rose 10 percent. By early 1993, Benetton had continued to close stores in the United States and, for production and marketing reasons, ceased operations at the Rocky Mountain plant in North Carolina. A technologically advanced factory opened at Castrette, Italy, which was designed to expand manufacturing capacity to 20 million pieces per year with about 15 people, using sophisticated robotic technology. Goods were now exported in greater numbers from Italy, where Benetton benefited from the abolition of the wage indexation system and the devaluation of the lira following its withdrawal from the exchange rate mechanism of the European Monetary System. At this point, Benetton had 32 factories, of which 27 were in Italy, and license agreements in 13 countries. In addition, Benetton decided to expand in developing countries, forming a joint venture with a major Indian manufacturer to produce linens and stationery, opening its 7,047th store, in Cuba, and transforming Benetton Mexico from a sales subsidiary to a manufacturing operation for the North American market. These developments, particularly the continued effort to rationalize production, resulted in Benettons stock reaching a five-year high. Consolidated revenues increased in 1993 by about 10 percent compared with the previous year, and net income rose 39 percent since 1990. Benettons global advertising campaign succeeded in generating a mix of praise and criticism and, ultimately, a fair amount of free publicity since about 1989. The ads, which were initially product-oriented campaigns on themes of multinational and multiracial harmony, eventually focused on institutional-oriented campaigns that featured documentaries on AIDS, sexuality, the environment, interracial relationships, and the war in Bosnia-Herzegovina. Although many of the ads became the subject of controversy and were withdrawn or banned throughout the world, the United Colors of Benetton ad campaign, which hinged on racial diversity, won Benettons art director Oliviero Toscani the UNESCO Grand Prix award. Despite the ad controversy, Benetton managed to maintain a sterling corporate image during Italian government kickback investigations conducted in 1993 that involved more than 5,000 of the countrys political and business elite. In fact, Luciano had gotten involved in national politics as part of a movement to overthrow the old system, and n 1992 was elected to the Italian Senate as a member of the Republican party. In 1994, however, Luciano retreated from politics, believing that the Italian government had met its objective, to devote himself to the family business. In early 1994, Palmieri diversified Benetton by planning substantial acquisitions of either well-known brands or companies in the developing world. One such expansio n was a joint venture agreement signed with Timex and Junghans Uhren to produce watches and alarm clocks. In addition, Palmieri planned to double turnover by 1996. To fund these ambitious plans, he placed 11 million shares in foreign markets. This issue was expected to raise the float from 20 to 30 percent, with the remaining stock controlled by the Benetton family. In the mid-1990s, Benettons efforts to crack the U. S. market appeared to run out of steam. While the companys clothing continued to attract European consumers, American shoppers turned away from the brand and its all too controversial advertising campaigns. The companys attempts to enter the Asian and Eastern European markets met with similar indifference on the part of consumers. In the meantime, the 1990s saw the rise of a new breed of trendy designer-retailers who soon were beating Benetton at its own game. Such names as HM, Zara, The Gap, Diesel, and many others began drawing consumers from Benetton stores. With its apparel sales in a slump, Benetton also faced a crunch from its effort to crack the sporting goods market. Since the late 1980s, the Benetton familys Edizione holding had been building up a portfolio of sporting goods companies, starting with its purchase of Nordica in 1989. By the late 1990s, the company had tennis manufacturer Prince, racquetball equipment maker Ektelon, the United States Rollerblade, and others, including golf equipment from Langert, skis from Kastle, and mountaineering boots from Asolo. These holdings were placed under a new unit, Benetton Sportsystem, which was then sold to Benetton S. p. A. between 1997 and 1998, for $300 million. Yet the sporting goods division never jelled with the company, and after years of posting losses, Benetton began selling off the sporting goods division. This process was completed in large part by 2003, with the sale of Nordica. In the meantime, Benettons problems with its clothing division deepened. The late 1990s saw the company attempt a massive licensing scheme, placing its brand name on items ranging from condoms to mineral water to wallpaper. As one consultant told Forbes: That is not a good sign. Its usually an indication that a brand is over the hill. Benettons desperation to recapture its former glory was highlighted by a distribution agreement reached with staid U. S. department store group Sears, Roebuck and Co. in 1998. The hoped-for sales never materialized. Worse, Benettons advertising campaign inspired only revulsion in the United States, when it launched its We, On Death Row campaign featuring prison inmates. The resulting controversy convinced Sears, Roebuck to pull out of its distribution agreement. Benetton continued to struggle into the 2000s, with a lack of focus and little enthusiasm for its clothing designs. The company appointed a new CEO, Luigi de Puppi, who was replaced in 2003 by Silvano Cassano, a former Fiat executive. At the same time, the Benetton family announced that it planned to draw back from the day-to-day operation of the clothing company. Cassano installed new management and led a revamp of the companys clothing designs and a redesign of its retail stores, with a focus on the groups 166 megastores. The company also launched a new brand, Sisley, featuring trendier, edgier youth fashions. By the end of 2003, as the companys sales continued to slipback to $2. 3 billion, Cassano announced plans to spend nearly $530 million on an effort to revitalize the companys retail offer. As part of that strategy, the company intended to introduce a new range of higher-quality goods, and diversification into cosmetics, accessories, and home furnishings. Benetton hoped to recapture the flair that had made it one of Italys major fashion success stories. Principal Subsidiaries Benfin S. p. A. ; Bencom S. p. A. ; Galli Filati S. p. A. ; Fabrica S. p. A. ; Benetton Fashion S. p. A. ; Benlong S. p. A. Benetton Services Ltd. (U. K. ); Benetton U. S. A. Corporation; Benetton Capital Investments N. V. (Netherlands); Benetton Holdings N. V. (Netherlands); Benetton International N. V. (Netherlands). Principal Competitors Industria de Diseno Textil S. A. ; The Gap Inc. ; Hennes Mauritz AB; Vivarte; Gruppo Coin S. p. A. ; Kiabi S. A. ; La Redoute; Charles Vogele Holding AG; Peek und Cloppenburg KG; Somfy International S. A. ; Cortefiel S. A. ; Mango S. A. Further Reading Benetton, Luciano, with Andrea Lee, Io e i miei fratelli: La storia del nostro successo, Milan: Sperling and Kupfer Editori, 1990. Benetton to Sell Rollerblade, WWD, January 7, 2003, p. 16. Camuffo, Arnaldo, and Giovanni Costa, Strategic Human Resource ManagementItalian Style, Sloan Management Review, Winter 1993, pp. 59-67. Carlson, Scott, Benetton Write-Offs Add Up to Loss, Financial Post, April 1, 2003. Cento Bull, Anna, and Paul Corner, From Peasant to Entrepreneur: The Survival of the Family Economy in Italy, Oxford: Berg Publishers Limited, 1993. Dapiran, Peter, BenettonGlobal Logistics in Action, International Journal of Physical Distribution and Logistics Management, volume 22, number 6, 1992, pp. -11. Edmondson, Gail, Has Benetton Stopped Unraveling? , Business Week, June 30, 2003, p. 76. Gallagher, Leigh, About Face, Forbes, March 19, 2001, p. 178. Harvard Business School, Benetton S. p. A. : In dustrial Fashion (case study), Boston: HBS Services, 1987. How Benetton Has Streamlined and Branched Out Worldwide in Casual Clothing Market: Case Studies from Academia, International Management, May 1985, pp. 79-82. Kaiser, Amanda, Benetton Invests $526m to Expand Range of Product, WWD, December 10, 2003, p. 2. Ketelhohn, Werner, An Interview with Aldo Palmieri of Benetton: The Early Growth Years, European Management Journal, September 1993, pp. 321-31. , An Interview with Aldo Palmieri of Benetton: The Return As CEO, European Management Journal, December 1993, pp. 481-84. Lee, Andrea, Profiles, New Yorker, November 1986, pp. 53-74. Pepper, Curtis Bill, Fast Forward, Business Month, February 1989, pp. 25-30. Stillit, Daniel, Benetton: Italys Smart Operator, Corporate Finance, June 1993, pp. 30-39. Vergani, Guido, A Family Affair, Harpers Bazaar, December 2002, p. S16. - Marina L. Rota; Updated by M. L. Cohen Sponsored Links Benetton Family Latest World News from the International source- FT. com FT. com Benetton Perfume Major Brand Names Perfume, Make up Cosmetics 50% off. Free Shipping. www. strawberrynet. com Biography: Benetton Benetton, founded in 1965, and initially producing fine colorful knitwear, expanded to become the largest apparel network in the world. Benetton Groups diversification into a wide range of products and activities and its often controversial advertising techniques made the Benetton name a household word. The Benetton clothing line was created by three brothers and their sister in a small knitting shop in Ponzano Veneto, Italy. When their father died, Luciano (born 1935) left school to work in a clothing store in order to support his mother, sister Giuliana, and younger brothers Gilberto and Carlo. Luciano developed promotional and commercial expertise as a clerk in a textile store in Treviso. Later, as a representative of small textile establishments, he built up contacts with the Roman knitting magnates who were helpful when the family expanded its operation. As president of the Benetton Group, Luciano led the expansion of family holdings, particularly in the 1990s. He served as a senator of the Italian Republic from 1992 to 1994. Luciano is the father of four children, including Mauro Benetton, marketing director of the Benetton Group. Giuliana Benetton (born 1937) gained her experience from ten years of handicraft work in knitting for women. She created new knitwear collections and oversaw product lines. Giuliana served on the board of directors of both Edizione Holding, the family owned financial holding company and Benetton Group. She is married and has four children. Gilberto Benetton (born 1941), vice-president of the Benetton Group, president of Edizione Holding, and president of Benetton Sportsystem, also handled all Benetton sponsorships of athletic events. Through the Benetton Foundation, he created a sports complex in Treviso, Cittadella dello Sport, which was open to the public. Gilberto is married and has two children. Carlo Benetton (born 1943) was involved with the manufacturing component of Benetton. He was responsible for production at headquarters and abroad. Carlo served as vice-president of Edizione Holding and was on the board of directors of the Benetton Group. He is the father of four children. Mauro (born 1962), eldest son of Luciano, began working for the Benetton Group as a student and later managed a shop in Paris. In 1985 he moved to Benettons headquarters in Ponzano, where he took charge of the relaunch of one of the Groups main lines, which then experienced a period of record growth. Mauro was appointed marketing director of the Benetton Group in 1992, at the age 30. The Benetton family combined and optimized their expertise in marketing (Luciano), production (Giuliana), management and finance (Gilberto) and technical know-how (Carlo). They aimed at the casual wear market with color to catch the eye, first only in woolens but later in cotton. When regional small plants producing stockings came upon hard times, the Benettons bought their equipment at bargain prices. Now they were ready for a spectacular expansion. Between 1972 and 1976, they expanded into all types of clothing, from jeans to gloves to a complete Benetton wear model. Going into the 1990s there were 14 family members in the business. The Benettons aimed to transform the fashion-fractionalized small handicraft style into an industry with minimum risks. To achieve this, they expanded in variety and size and decentralized production and distribution. They purchased large quantities of materials in raw form, benefiting from quantity discounts and controlling the processing (especially color) from its rawest form. However, 80 percent of production was performed in plants not owned by Benetton but controlled by the family. In distribution, various attempts were made to control all stores. At the beginning they would go into partnership with a friend who would in turn find others interested in having a Benetton store. Later, with international expansions, the holdings model was adopted, with the Benettons always having an exclusive contract. As a practical characteristic, the stores were about 400 square feet (while the competition was usually 1,500 square feet) and 50 percent of all working hours were dedicated to sales (the competition, 22. 5 percent). This is probably why Benettons productivity was four times greater than the competition. Still, the success of the Benetton model is due to their trust. They wanted the stores to be exclusively Benetton, but allowed the owners to have 51 percent of the holdings. The Benettons have always preferred to be partners with their producers and distributors rather than to seek vertical integration (where the managers of stores were salaried people with no direct share in the operation). The incentive was to make every representative a majority partner in his particular operation so that, as owners, they would strive to increase sales and profits. In the 1980s, the little 400-square-feet stores developed a turnover more than twice as large as those of competing companies. Specialization and standardization are the main instruments that allow high productivity. The Benettons found a happy mixture of personal incentives: outright ownership by each unit and overriding control of operations and a quality/product mix to conduct market penetration at low risk with high profitability. The family entered into other business ventures assisted by loans from financial institutions. They eventually purchased the large well-known shoe manufacturer, Varese. In time, they allowed larger store units, depending on the sales as calculated pieces per square foot. The 1980s saw a decline in the number of shops in the United States, but expansion into other global markets. Benetton increased the number of stores in the Far East and boasted 50 stores in China alone. By 1996 Benettons presence was felt in over 100 countries, with 7,000 sales outlets for their main brands of United Colors of Benetton, Sisley, and 012. The sales network included 80 branches and 800 staff responsible for independent stores in specific geographic areas. In 1996 the largest store opened for business in London, England. The Benetton magazine, Colors, was introduced, using multicultural messages the company had featured in its ad campaigns of the 1980s. In addition to their clothing lines, Benetton diversified into a variety of other enterprises through Edizione Holding. Acquisitions included Rollerblade, Prince tennis rackets, Nordica ski boots, Kastle skis, and Asolo hiking boots. Benetton, along with partners, also acquired Euromercato, Italys 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. By 1995 Benetton sponsored sports teams in volleyball, basketball, and rugby. Benetton team Formula One World championships include the 1994 and 1995 World Drivers championship and the World Car Makers championships. In the 1990s Benetton came under criticism for its use of controversial images in its advertising campaigns, including those depicting war, AIDS, racism, violence, and homelessness. While Benetton was pressured into removing offensive ads from billboards, the same ads were critically praised for their sociopolitical statements. A number of lawsuits were filed against Benetton by shopowners who claimed that the ads had caused a drop in sales, but these charges were difficult to prove. A downturn in the European economy impacted sales during this period. The images used in the ad campaign have been included in museum collections around the world and continue to spark debate. Benetton, independently and in conjunction with other groups and organizations, contributed to many initiatives aimed at social problems. Examples include a 1995 campaign aimed at generating AIDS awareness in India. Support for War Child, a charity that helps children in war zones around the world, has also been praised. Autographed Toscani posters were offered to visitors at a clothes show event in exchange for donations to War Child. The Food and Agricultural Organization (FAO) of the United Nations invited Benetton to create a communications campaign for the first world food summit held in Rome. Benettons use of information technology facilitates the management of the global business from Ponzano Veneto. Students from around the world study at Fabrica, Benettons arts and communications research center near Treviso, learning communications in all its forms and using the new technologies that will take them, and Benetton, forward into the future. Further Reading Additional information on the Benetton family can be found at their official Web site, ; in Business Month (February 1989); Business Week (March 5, 1990; April 10, 1995); Los Angeles Times (January 23, 1994; April 21, 1996); New York Times (November 23, 1993; March 20, 1997); Washington Post (January 21; August 29, 1995); and in Italian language references: P. Calvani, Perche tutti copiano il modello Benetton Espansione (1986); Giuseppe Nardin, La Benetton (1987); E. Rullani and A. Zanfei, Benetton: invenzione e consolidamento di un sistema internazionale, Bolletino Ospri (1984); G. Turani, Benetton sbarcheraa Milano e Wall Street, La Repubblica (December 15-16, 1985). Sponsored Links Musto Nautica on-line Cerate, accessori, maglie, HPX Spediti con 9 euro, garantito! www. ilmarinaio. com/Musto Benetton Find Solutions for your Business. Benetton, Info. Registration! www. KnowledgeStorm. com Modern Design Dictionary: Benetton (established 1966) By the early 21st century the Italian multinational company Benetton had become one of the largest retailers in the world with outlets in more than 120 countries. The company markets four different brand identities: United Colours of Benetton casual wear for the family; Sisley for older consumers; 012 baby and toddler clothing; and Playlife sportswear. Within a dozen years of its establishment this clothing manufacturing company, founded near Venice by Luciano Benetton, commenced its programme of international expansion. This was helped by the standardization of the companys retail outlets, which were designed in such a way as to show off Benetton products in an alluring manner. Benetton was quick to utilize computing systems in the automation of its operating processes, both in the manufacture of clothing and in the monitoring of stocks and sales. As such, the company was an early exponent of the Just in Time production and distribution system, a philosophy that a number of progressive manufacturer-retailers adopted in the late 20th century. In northern Italy in the early 1990s Benetton built two new factories that utilized advanced computing technology in the linking of production controls with an efficient ordering and distribution system. Benetton became widely known for its dramatic, and often controversial, advertising campaigns directed by the fashion photographer Oliviero Toscani. These centred on themes such as ‘All the Colours of the World’ (1984), ‘United Colours of Benetton’ (1990), and ‘HIV Positive’ (1992). The company also captured tremendous publicity through its involvement in Formula 1 motor racing, televised throughout the world. Sponsored Links Il Tuo Bazar on Line Acquista in sicurezza da casa tua con un semplice gesto! www. mercatissimostock. com Bedava Video Benetton Milyonlarca Videoyu Izleyin ve Paylas? n! 4dh. com/Video Modern Fashion Encyclopedia: Benetton Spa (Italian sportswear firm) Founded: by Giuliana (1938- ), Luciano (1935- ), Gilberto (1941- ), and Carlo (1943- ) Benetton, in Treviso, in 1965 as Maglificio di Ponzano Veneto dei Fratelli Benetton. Company History: First Benetton outlet opened in Belluno, Italy, 1968; first shop outside Italy, in Paris, 1969; launched major European expansion campaign, from 1978; first U. S. store, New York, 1979; first Eastern European shop, Prague, 1985; went public in Milan, 1986; formed Benetton Sportsystem SpA, 1989; opened huge stores in Paris, London, Barcelona, Lisbon, Frankfurt, Vienna, Prague, and Sarajevo, 1994; opened 50 shops in China and factory in Egypt, 1995; opened London megastore and New York flagship, 1996; bought sports group from parent company, 1997; formed Benetton USA with Sears, 1998; introduced Playlife stores, 1998-99; dumped by Sears, 2000; concentrated expansion in U. S. , 2001. Company Address: Via Chiesa Ponzano 24, 31050 Ponzano Veneto, Treviso, Italy. Company Website:www. benetton. com. In recent years the Benetton Group of Italy has become better known for controversial advertising campaigns than for the brightly-colored knitted sweaters with which the company was founded in 1965. As part of a well defined global strategy to make the Benetton name as well known as McDonalds or Coca-Cola, the sibling members of the Benetton family- Gi uliana, Luciano, Gilberto, and Carlo Benetton- created a multibillion-lire business with an ever growing cadre of shops in 120 countries worldwide. The company is a leading producer and retailer of casual apparel and sports-related goods, as well as licensed accessories such as cosmetics, toys, swimwear, eyeglasses, watches, stationery, underwear, shoes, and household items. Benetton collections are aimed at young people and children, but over the years have been adopted by consumers of all ages. United Colors of Benetton attempts to transcend gender, social class, and nationality by manufacturing knitwear that exemplifies a philosophy of life. This was explicitly reflected in longtime creative director Oliviero Toscanis 1983 advertising campaign Benetton- All the Colors of the World. The campaign depicted groups of children representing all walks of life wearing colorful Benetton garments. Subsequent campaigns commented on political and social issues including religion, sex, terrorism, race, AIDS, and capital punishment, without depicting actual Benetton garments. A number of controversial campaigns were banned by advertising authorities, fueling unprecedented media coverage. Similar in attitude to the California-based Esprit company, Benetton epitomizes the values of a generation of young, socially aware consumers. Garments are designed to be fun, casual with an easy-to-wear cut. Inspiration is often drawn from past sentiments but produced with a contemporary twist, like 1950s ski fashions in high-tech synthetic ice-pastel fabrics, 1960s tailored suits in herringbone, 1970s disco garments with sequins and leather combined. Other collections have been based on themes such as the Nordic for little girls, designed in new fabrics like fleece, and Riding Star, drawn from the world of horseback riding. In keeping with the companys cosmopolitan attitude, collections have also been drawn from Benetton family travels. In the beginning, Benetton sweaters were hand-knit by Giuliana in bright colors which distinguished them from existing English-made wool sweaters. The first collection consisted of 18 pieces, the most popular item being a violet pullover made from cashmere, wool, and angora. Todays apparel, of course, is produced on a much grander scale, using high-tech manufacturing and innovative marketing strategies. Benetton is certainly one of the most progressive clothing manufacturers in the world; yet its rapid rise has not come without a price. Profits fell off sharply after a lower-price initiative backfired in 1994; the European recession forced the closure of nearly 600 stores; its cosmetics division produced dismal results; then came family squabbles, and court battles with a group of German retailers who refused to pay for merchandise after another of Benettons controversial ad campaigns (eventually resolved in Benettons favor). By 1995 a seemingly wiser Benetton had toned down its often offensive ads, belatedly realizing the shockwaves cost the firm time and money in having to defend its position. Instead, the firm concentrated on making money and much of it came from the expansion of sister firm, Benetton Sportsystem SpA, which unabashedly pursued its intention of becoming the worlds largest sports equipment and accessory company. While Sportsystem was busy acquiring Rollerblade, Nordica, Langert, Prince, and others, Benetton was fielding major losses in the U. S. market. By the end of the century, Benetton had opened a factory in Egypt and built megastores in London, New York, San Francisco, Moscow, Riyadh, Berlin, Hong Kong, and elsewhere. In a slick move, Benetton purchased a majorty stake in its sibling, Sportsystem, effectively segueing into the sporting goods and activewear industry, then introduced and stocked a chain of sporty stores called Playlife. To bolster its U. S. presence, the firm formed a joint venture with Sears (Benetton USA) and saw that alliance collapse after another provocative ad campaign (We, on Death Row) enraged everyone from consumers to politicians in 2000. Benetton had finally gone too far with its shockvertising- not only did it lose the lucrative contract with Sears and part ways with creative director Toscani after 18 years, but was forced to issue a formal apology to the families of those murdered by its poster-boy Death Row inmates. Ironically, a newer, gentler Benetton arose in 2001, surprising everyone with its low-key ads similar to those made popular by Gap. Generally panned, Benetton, as usual, ignored its critics and set about doing what it did best- selling Benetton. With new stores planned for a multitude of high profile cities in the U. S. , Carlo Tunioli, executive vice president for Benetton USA, promised a bit of the old-style advertising in the near future. Benetton will always be loyal to its brand DNA, which means social statement, Tunioli explained to Womens Wear Daily (20 March 2001). Benetton will keep working in that direction, but much will be focused on product. It may be controversial, but were not going to be controversial in the way you used to see Benetton. Time will tell if that holds true. Publications On Benetton: Books Baker, Caroline, Benetton Colour Style File, London, 1987. Belussi, Fiorenza, Benetton: Information Technology in Production Distribution, Brighton, 1987. Aragno, Bonizza Giordani, Moda Italia: Creativity and Technology in the Italian Fashion System, Milan, 1988. Mantle, Jonathan, Benetton- The Family, the Business, and the Brand, New York, 1999. Articles Bentley, Logan, The Tightknit Benetton, in People, 15 October 1984. Lee, Andrea, Being Everywhere: Luciano Benetton, in the Ne wYorker, 10 November 1986. Coleman, Alix, A Colourful Career, in the Sunday Express Magazine (London), 20 September 1987. Fierman, Jaclyn, Dominating an Economy, Family-Style: The Italians, in Fortune, 12 October 1987. Finnerty, Anne, The Internationalisation of Benetton, in Textile Outlook International (London), November 1987. Alessandro Benetton, in Interview, April 1988. Fuhrman, Peter, Benetton Learns to Darn, in Forbes, 3 October 1988. Griggs, Barbara, The Benetton Fratelli, in Vogue (London), October 1988. Tornier, Francois, Les 25 ans de Benetton, in Elle (Paris), 1 October 1990. Baker, Lindsay, Taking Advertising to Its Limits, in The Guardian (London), 22 July 1991. Kanner, Bernice, Shock Value, in New York, 24 September 1992. Waxman, Sharon, The True Colors of Luciano Benetton, in theWashington Post, 17 February 1993. Rossant, John, The Faded Colors of Benetton, in Business Week, 10April 1995. Forden, Sara Gay, Luciano Benetton Sees a Rosy Future Despite Cloudy Days, in W omens Wear Daily, 20 April 1995. Levine, Joshua, Even When You Fail, You Learn a Lot, in Forbes, 11 March 1996. Rossant, John, A Cozy Deal at Benetton, in Business Week, 28 July 1997. Edelson, Sharon, Benettons U. N. Mission, in Womens Wear Daily, 3 April 1998. Sansoni, Silvia, The Odd Couple, in Forbes, 19 October 1998. Seckler, Valerie, Benettons Global Game Plan, in Womens Wear Daily, 1 July 1999. Garfield, Bob, The Colors of Exploitation: Benetton on Death Row, in Advertising Age, 10 January 2000. Sears Drops Benetton, in Womens Wear Daily, 17 February 2000. Gallagher, Leigh, About Face, in Forbes, 19 March 2001. Moin, David, Megastore Buildup: Benettons Game Plan for U. S. Recovery, in Womens Wear Daily, 20 March 2001. TealTriggs SydonieBenet Sponsored Links Benetton Fragrances Top brands at cheap prices Fast delivery of genuine products www. CheapSmells. com/Benetton Mujeres sexy en el chat Iniciar ahora gratis ? No necesitas registrarte! www. sms-contactos. es Wikipedia: Benetton Group Benetton Group TypePublic (NYSE: BNG) FoundedTreviso, Italy (1965) HeadquartersVilla Minelli, Ponzano Key peopleLuciano Benetton, Chairman Giuliana Benetton, Director Gilberto Benetton, Director Carlo Ben etton, Deputy Chairman Industry Clothing Products Complete list of Benetton brands Revenue â‚ ¬1,8 billion (2005) Employees 7,987 (2005) Website www. benettongroup. com Benetton Group S. p. A. (NYSE: BNG) is a global clothing brand, based in Treviso, Italy. The name comes from four members of the Benetton family who founded the company in 1965. Benetton Group is listed on the Borsa Italiana, the Frankfurt Stock Exchange and the New York Stock Exchange. The career began in 1955 when Luciano Benetton, the eldest of four children, was only 20 years old and working as a salesman in Treviso. He saw sales for colourful clothes. He sold a younger brothers bicycle in order to buy the first second-hand knitting machine, and began to market a small collection of sweaters to local stores in the area of Veneto. The positive reaction to his designs was only the beginning of a solid start. Soon after, he asked his sister and his two younger brothers, Giberto and Carlo, to join him. In 1968, the Benettons opened their first store in Belluno and the year after in Paris, with Luciano as chairman, his brother Giberto in charge of administration, their younger brother Carlo running production, and Giuliana as a chief designer. Its core business is clothing with the casual line marketed as the United Colors of Benetton, a fashion-oriented Sisley division, Playlife leisurewear, and Killer Loop streetwear brands. Their products include womenswear, menswear, childrenswear and underwear and they have recently expanded into toiletries, perfumes, exclusive watches and items for the home such as kitchen accessories and baby products. The United Colors publicity campaign originated when photographer Oliviero Toscani was given carte blanche by the Benetton management. Under Toscanis direction ads were created that contained images unrelated to any actual products being sold by the company; a deathbed scene of a man (AIDS activist David Kirby) dying from AIDS, a bloodied, unwashed newborn baby with umbilical cord still attached, two horses mating, close-up pictures of tattoos reading HIV Positive on the bodies of men and women, a collage consisting of genitals of persons of various races, a priest and nun about to engage in a romantic kiss, and pictures of inmates on death row. The companys logo served as the only text accompanying the images in most of these advertisements. Criticisms Benetton has faced criticism from Mapuche organizations, including Mapuche International Link, over its purchase of traditional Mapuche lands in southern Argentina. [1] Benetton aroused suspicion when they considered using RFID tracking chips on clothes to monitor inventory. A boycott site alleges the tracking chips can be read from a distance and used to monitor the people wearing them. [2] Issues of consumer privacy were raised and the plan was shelved. PETA launched a boycott campaign against Benetton for buying wool from farmers who practiced mulesing. Benetton has since agreed to buy nonmulesed wool and has further urged the wool industry to adopt the PETA and Australian Wool Growers Association agreement to end mulesing. [3] Most Benetton locations in Canada and in the United States do not stock any of their mens collection or will carry only a small fraction of the col lection. Unlike comparable clothing retailers such as Gap, Banana Republic, J. Crew, Abercrombie Fitch and Eddie Bauer, Benettons does not list prices for their merchandise on their official websites. See also Benetton family Benetton Formula Benetton Basket basketball club Benetton Rugby Sisley Treviso volleyball team External links United Colors of Benetton FABRICA (Benettons center for design research) regimbald. ca/Benetton/index. html oot. it 21investimenti. t Benetton vs. Mapuche: land recovery in Patagonia Benetton brands= Sisley Playlife Killer Loop Undercolors This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer) Donate to Wikimedia Sponsored Links Free PowerPoint Templates 300 Ready for You to Download Now, Make Your Presentations Look Great! PowerBacks. com publicite benetton Medias Publicite : lActualite Audiovisuel Cinema sur Le Figaro