Essay on Benetton Family

8596 Words Sep 26th, 2008 35 Pages
Company History: Benetton Group S.p.A.

Company Perspectives:
Today the Benetton Group is present in 120 countries around the world. Its core business is clothing: a group with a strong Italian character whose style, design expertise and passion are clearly seen in the United Colors of Benetton and the more fashion-oriented Sisley brands, and in sportswear brands Playlife and Killer Loop. The Group produces over 110 million garments every year, over 90% in Europe.
Key Dates:
• 1955: Giuliana and Luciano Benetton buy their first knitting machine and begin selling Giuliana's woolen sweaters.
• 1965: The Benetton family forms a partnership, Maglificio di Ponzano Veneto dei Fratelli Benetton.
• 1972: The company introduces a new
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Then Luciano sold a small collection of Giuliana's knitted creations to local Veneto area stores. The enthusiastic reception of her designs gave the company a solid start.
In the early 1960s, the "Brothers of the Rainbow" invested about $2,000 to buy another secondhand hosiery knitting machine, which Luciano converted to make sweaters and jersey materials, and to build a small factory in Ponzano, a few miles from Treviso. Then in 1965, the Benetton company was formed as a partnership, called Maglificio di Ponzano Veneto dei Fratelli Benetton, with Luciano as chairman, his brother Gilberto in charge of administration, their younger brother Carlo running production, and Giuliana as chief designer.
To compete in the casual clothing market, which is marked by its competitive and volatile nature, the small company's designs needed to be creative but so did its management. The company flourished by making "industrial fashion," fashionable apparel made and sold through flexible, cost-effective retailing and production systems.
To attract attention to their sweaters, Luciano decided to sell directly to the consumer through specialized knitwear shops rather than to retail outlets that sold competing products. This decision formed the basis for the Benetton retail outlets, which sell the Benetton line exclusively; the first such store was opened in 1968 in Belluno in the Italian Alps. The following

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