Benetton embarks on restructure as it focuses on brands
Benetton Group has announced that it is to embark on a three-year programme to refocus its business structure around its United Colors of Benetton and Sisley brands.
The group’s board of directors has approved a programme in which three new entities will be created. The first will focus on the brands, the second on manufacturing and the third on real estate management. All three entities will be directly controlled by Edizione S.r.l., the holding of the Benetton family.
Benetton Group said the new programme will result in a clearer separation in the way the two brands operate in order to increase their competiveness in the market place. In addition, investment will be focused on directly-owned key and flagship stores with the development of new retail concepts and a strong geographic focus on target markets. Benetton will also work to develop the potential of its accessories and licenses, including the recently announced fragrance agreement with Puig.
Alessandro Benetton, chairman of Benetton Group, said: “From the outset, we laid out a strategy for rethinking our business based on discontinuity and renewal, of course without forgetting our rich history. Today we see certain early signs that the strategy is starting paying off, even if we are still only at the beginning of the journey and the market environment remains uncertain. Our efforts are focused on recovering profitability by simplifying the business model and focusing on our brands.”
