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Benetton Loses its Edge

By FashionUnited

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Who can forget the controversial ads from Benetton, whose provocative images and poignant social messages turned it into one of the world's best-known brands. Unfortunately, savvy publicity is no longer enough to keep it interesting to consumers.

With companies like Top Shop, Zara and Hennes & Mauritz revolutionising the high street, Benetton has failed to keep up with a changing industry. Whereas the likes of Zara can successfully translate catwalk trends to the shopfloor in less than one month using sophisticated digital technology, Benetton has lost its 'cool' factor and is a brand that has gone out of fashion. In the market place it is lacking a clear position.

Silvana Cassano, the new chief executive states, "getting the fashion right is only half of it. It is on the sales floor that Benetton's weakness becomes apparent. "They are manufacturers, not retailers," states Armando Branchini, a Milan-based consultant. "They need to make the move to more professional retail management." The problem is that is that 93% of Benetton's sales come from franchise operations. Zara and H&M, in contrast, own their shops, which makes it easier to install unified systems that track global sales electronically.

Benetton should be a warm, friendly, colourful Latin brand. After all, that is what its name denotes. An injection of excitement, a facelift of their megastores and a new ad campaign should see it through the needed improvements. Don't expect to see any shock adverts for the coming season. The only shock will be the clothes.

Benetton