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Benetton Group SpA is an Italian clothing company. The company was founded in 1965, Ponzano Veneto by Luciano, Gilberto, Carlo Benetton and their sister Giuliani. Their first store abroad was opened in Paris in 1968. Tokyo followed in 1982 after New York (1980).
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Benetton reaps benefits of producing in India
Italian clothing giant Benetton has cut prices by 20 per cent this season thanks to lower production costs from suppliers in India, its Asia-Pacific chief executive said at the weekend. The company stated Benetton was using Indian suppliers because of customer demand, not cost-cutting. An executive stated in The National: "We will have more collections tuned to Asian markets with Asian patterns and Asian fitting," he said.
Central Marketing Group subsidiary Central Trading imports and distributes the United Colours of Benetton brand, known for its colourful knits and provocative advertisements. The Indian-made products will attract lower tariffs. Wool is normally subject to a 60-per-cent tariff, but Asian fabrics are cheaper. Benetton said this would increase sales by 15 to 20 per cent this year.
From June, Warner Music executive Gerolamo Caccia Dominioni will be the company's new chief executive, ending uncertainty following his predecessor's resignation several months ago over differences in developing internationally, especially in Asia.
www.benetton.com
14 May 2007
Benetton appoints new chief executive
Italian fashion group Benetton has chosen Warner Music executive Gerolamo Caccia Dominioni as the company's new chief executive. The clothing company, as famous for it's logo'd knitwear as its provocative advertising imagery, reported a 12-percent increase in earnings in 2006, citing growth in the Mediterranean and Eastern Europe as well as China and India and a tight hold on operating costs, according to the Associated Press.
Net profit for 2006 was 125 million euros ($165 million), up from 112 million euros, the company said in a statement, while revenues rose 8 percent to 1.9 billion euros ($2.5 billion) from 1.76 billion euros a year earlier. The apparel business has lagged behind faster-growing rivals like H&M, Zara and Britain's TopShop and River Island. Some industry insiders have suggested the Italian company may have lost its competitive edge as the Benetton family expands into other businesses.
Management of the clothing retailer had been a question since former CEO Silvan Cassano quit over differences in the company's direction four months ago. Chief Financial Officer Pier Francesco Facchini resigned at the same time, citing personal reasons. Benetton projects revenue growth of 6 percent to 8 percent in 2007. Dominioni, 52, takes up his new post June 1. He has been at Warner Music for the last 10 years and is vice chairman and chief operating officer of Warner Music International.
www.benetton.com
19 March 2007
Benetton forecasts growth
On Tuesday, Benetton's board of directors approved the Italian fashion group's preliminary results for 2006. Consolidated revenues rose 8.4 percent to €1.913 million, up from €1.765 million in 2005. Net income growth was in line with expectations, at around 6.5 percent of revenues.
The trends for this year's revenues are "decidedly positive". The company has estimated that the growth rate for the next few years should be at least 6 to 8 percent. Orders for 2007 were in line with the new structure of the product offering, which is more spread out over the year. However, the first months have already made it possible to pinpoint a trend for the year. Growth in 2007 will result from an increase in volume and product mix in all clothing areas, especially in accessories and shirts. Growth is also expected in foreign markets, particularly in the Mediterranean region, Eastern Europe, China and India. Greater segmentation of the product offering is expected to drive results in Italy. Gross earnings are expected to increase by 20 percent. The group will also continue to develop, with investments to be between €250 and €300 million, mainly in the logistics, IT and production side of the business. "The positive trend in 2006 is confirmation of the effectiveness of commercial policies launched in previous years and of the continuous improvement in service to the client, both in terms of speed and richness of the product offering, in which we are continuing to invest in 2007," group chairman Luciano Benetton said in a statement. "As from this year, we can confidently dedicate our resources to supporting growth in strategic and fast developing areas, assisted by the professionalism and enthusiasm of our partners".
www.benetton.com
8 February 2007
Benetton bosses suddenly resign
Benetton's chief executive Silvano Cassano and chief financial officer Pier Francesco Facchini have both tendered their resignation, effective immediately. They leave the Italian fashion house without a CEO and CFO. Benetton said it could be months before replacements are found. Their departure coincided with the company's release of interim results and investor relations staff was left to deal with questions from analysts and press. During the company conference call Mara Di Giorgio, head of investor relations, said Cassano and the Benetton board had disagreed about the group's international strategy, particularly in emerging markets. A spokesman for the company said Cassano had voluntarily left the company, while Facchini had decided to resign for personal reasons.
While the company searches for Cassano's and Facchini's replacements, chairman Luciano Benetton and his son Alessandro, vice chairman, will oversee the overall group strategy, while senior and mid-level executives will be responsible for the day to day management. Meanwhile, Cassano will remain a board member until his term ends in May. Benetton said the new chief executive will be responsible for developing the company, especially in the Far East .
The upheaval follows the company's large scale celebration of its 40 th anniversary in October. Luciano Benetton famously began his fashion empire hawking a sweater his sister knitted on his bicycle, before selling it for a sewing machine. The rest, as they say, is history.To commemorate the anniversary Benetton held its first ever fashion show in the Centre Pompidou in Paris, parading almost 100 colourful looks down the catwalk. It also organized a month long exhibition in honour of the company's world of communication.
With 5,000 stores in 120 countries, Benetton is truly a global brand. The company's success is reflected in the results. Group net revenues for the first nine months rose 6.5 percent to €1.37 billion. Apparel wholesale sales gained 7 percent to €1.27 billion. Net income rose from €89 million last year to €94 million, an increase of 6.5 percent. However, disregarding a one-time gain of €6 million related to a real estate sale in Madrid and other transactions, third quarter profits actually dropped 6.2 percent. The group's net position in the first nine months improved significantly at €452 million.
"With these results we can already say we have achieved the objectives that we set for this phase of the company's development," Luciano Benetton said in a statement. "We are now ready to tackle a new period in which we can plan, in addition to strengthening areas where we are already present, renewed commitment to growth in emerging countries and, generally, in all countries with significant demographic growth." The company forecasts full-year sales growth of 8 percent and profits for the year between 6.5 and 7 percent of revenues.
www.benetton.com
14 November 2006
Benetton H1 sales and profit hike
Italian fashion group Benetton presented a bullish outlook for the year as it posted profit and revenue gains for the first half. Net profits for the six months ended 30 June rose 1.9 percent to €64 million, while sales gained 6.7 percent to €898 million. Chairman Luciano Benetton said in a statement that the company's development "in all major markets" and its accelerated growth in orders "confirm the strength of our world-wide commercial network and the appreciation of the quality of our products by the final consumer." He added that he had "the firm conviction that this tendency is only the beginning" and that he expected further growth in the future. The company raised its previous full-year growth prognoses from 3.6 percent to 8 percent. Full year net profits are expected to reach 6.5 percent of revenues, amounting to €123.9 million.
Apparel wholesale sales climbed 7.4 percent to €825 million. Apparel sales increased thanks partly to a higher contribution from its partnership with the Turkish Boyner Group established in 2005 - a contribution of €14 million - and from sales growth of directly owned stores. The Mediterranean region, Eastern Europe , China and India showed significant growth. Meanwhile, first half profits grew mainly due to lower tax rates. Pre-tax profits dipped 1.4 percent to €83 million, while the company's decreased margins were the result of an incentive scheme aimed at franchisees, a spokesperson told WWD. The company started selling products at lower wholesale prices so that its franchisees could benefit from higher profit margins in their stores.
www.benetton.com
14 September 2006
Benetton reports rise in revenue
Benetton announced Group net revenues for the first quarter of 2006 were 416 million euro, compared with 383 million in the corresponding period of 2005 (+8.6%). Clothing sales amounted to 389 million euro, against 355 million euro in the first quarter of 2005, with a change of 9.5%.
In the retail sector, to be noted are the contribution to revenues by the Turkish partnership(established in May 2005), of 12 million euro, and the contribution of sales from the directly operated stores.
Revenue performance by independent partners was mainly influenced by the effects of the commercial development policy and the dynamics of 2006 spring-summer collection deliveries, designed to enhance service to stores.
Markets which continue to show significant growth are the Mediterranean basin, South Korea, China and India.
Sales were affected by positive exchange rates for around 5 million euro, representing 1.3% of total revenues.
Gross operating income was 43.0% of revenues compared with 44.2% in the same period of 2005, with a contribution margin of 35.7% compared with 37.0% in the first quarter of 2005.
Net income was 24 million euro, representing 5.8% of revenues, compared with 27 million euro in the first quarter of 2005 (7%).
The results of the first quarter make it possible to confirm the previously comunicated guidance for 2006; an increase in consolidated revenues at least equal to that in 2005, an EBIT of around 9.5%-10% of consolidated revenues and net income in the region of 6.5%.
Benetton was established in 1965 as a partnership by the Benetton family in Ponzano Veneto, Italy. It was reorganized as a limited liability company in 1978. The Company adopted the name Benetton Group S.p.A. in a corporate reorganization effective in December 1985. Prior to June 1986, the Company was wholly owned by the Benetton family. In June 1986, shareholders affiliated with the Benetton family sold shares representing approximately 11% of the Ordinary Shares to the public in Europe. The Benetton family initiated the public offering of such Ordinary Shares in order to establish a liquid public market for the Company's Ordinary Shares and to facilitate the Company's access to the international capital markets, with the listing on the Frankfurt Stock Exchange in October 1988.
25 May 2006
Benetton posts mixed 2005 results
Italian fashion retailer Benetton recorded consolidated revenues of €1.765 million (£1.229 million) for 2005, up from €1.704 million the previous year. Net income rose to €112 million from €109 million in 2004, while the net financial position fell to €351 million from €441 million the year before. The group said revenues growth was boosted by the market's positive reception of the fall/winter 2005 collections and, more significantly, by the contribution derived from the consolidation of the Turkish market and the growth of the Indian and South Korean markets. Also contributing to the rise in revenues was the growth in the network of directly operated stores.
At €643 million, margins slipped from 38.4 percent in 2004 to 36.4 percent, as the company built up its sales network. Operating profit dropped to €205 million or 11.6 percent of revenues, opposed to €225 million or 13.2 percent in 2004. The company said it received numerous orders, indicating a favourable response from partners in various markets. It also said that it expects directly operated store performance to improve during the year. Benetton added that it anticipates 2006 consolidated revenues to be in line with 2005, thanks to an increase in volumes and a greater product mix.
www.benetton.com
31 March 2006
Benetton Q3 profits drop
Benetton has seen its profit for the third quarter and first nine months of 2005 decrease, but has raised its sales prediction for full-year trading. The Italian fashion group reported a drop in profits to €27 million (£18 million), compared with €34 million last year, while revenues grew to €446 million from €392 million last year.
Net profits for the nine month period dropped to €89 million from €104 million, while sales for the period increased to €1.3 billion. Full-year revenues are expected to reach €1.7 billion, compared with the previous prediction of €1.6 - €1.7 billion, while full-year earnings before interest and tax is expected to be about 10 percent of sale.
www.benetton.com
14 November 2005
Sisley Casa Around The World
The
Italian fashion retailer The Benetton Group has signed a worldwide licensing
agreement for Sisley Casa products with Zorlu Holding.
According to the agreement, which is valid until 2009, Sisley Casa home-textiles
will be produced and distributed globally in department stores and specialist
outlets, in addition to the network of Sisley stores. The first collection,
the Fall/Winter 2005 collection, will launch at the end of August in five of
the Group's flagship stores in Paris, London, Madrid, Milan and Palermo.
Each collection will contain four categories of home products - kitchen, bedroom,
bathroom and living room - and will each be available in five lines - Black
& White, Vintage, Soft, Shiny, and Basic. Herein each collection reflects
the principal themes of the Sisley clothing collections.
Zorlu Holding is a Turkish production company that was founded in 1950. Today
it is one of Turkey's biggest conglomerates and operates internationally. It
cover various sectors, including electronics and computers, financial services
and energy production, and home-textiles. Zorlu has a sophisticated international
production network in the textile sector, which allows it to produce high quality
goods.
The licensing agreement with Zorlu Holding is similar to the agreements Benetton
Group signed with Mattel for the production of Barbie Loves Benetton girls'
clothing line, and with the French firm Selective Beauty, for perfume.
The Benetton Group operates in 120 countries under the brands United Colors
of Benetton, Sisley, Playlife leisurewear and Killer Loop streetwear. The group
produces roughly 110 million garments per year and has a global retail network
of 5,000 stores. It generates a total turnover of approximately EUR 1.7 billion
(GBP 1.15 billion).
www.benetton.com
2 June 2005
Benetton Boss Has No Regrets
According
to the Daily Telegraph, Luciano Benetton has no regrets about the controversial
advertising he approved.A billboard photo of a Catholic priest in full dress
kissing a nun on the lips? "It was a joke, to show that the habit doesn't
make the priest", says Benetton. It was banned in Italy after Vatican protests
but won the Eurobest Award in Britain.
A newborn baby with an uncut umbilical cord? A death row inmate gazing from his Missouri cell? A dying Aids patient? The blooded shirt of a dead Croat soldier? Mating horses? None is remotely linked to anything sold by the Benetton clothing chain. "I approved them all, and I defend them all. Our photos had a fantastic effect on public opinion. We wanted to probe emotions and stir debate, and we did," he says. The common theme was the battle against prejudice.
What began as a soft play on multiracial themes and world peace, in tune with the exuberant colours of the firm's clothes, escalated into social crusades against apartheid and the HIV epidemic, ending in a scattergun blast of images with no apparent aim other than to shock. Eventually America's Sears chain pulled out of a $100m contract.
As if to prove that name recognition is not everything in fashion, Benetton's share price has languished since the family took the company public - with perfect timing - in 1986. With a capitalisation stuck at €1.3billion, it has been left far behind by Sweden's H&M (€19billion), Nike (€17billion), and Spain's brash newcomer Zara (€14billion).
To be fair, Benetton has paid a price for manufacturing loyally in Italy while rivals switched to low-wage plants in Asia. But markets are not fair. The firm started belatedly switching its European production to Croatia, Hungary and Tunisia at the end of the 1990s.
Royalty aside, Britain has not been an easy market to crack. The Anglo-Saxon world has been hard on Benetton, although Luciano learned his industrial tricks in the 1950s during a stint in Hawick, Scotland, discovering a technique of beating wool under water with a paddle to make it softer, a technique unknown in Italy.
Oliveiro Toscani has been replaced by 27-year-old British photographer, James Mollison. The crusades continue but the hard edge has gone. Today's billboards feature the mournful Simian features of "James", "Bonny", "Pumbu", and "Jackson", great apes from species facing extinction. They illustrate Dr Jane Goodall's latest book James & Other Apes.
www.benetton.com
www.telegraph.co.uk
10 May 2005
Barbie wears Benetton
Italian fashion retailer Benetton Group SpA and Mattel Inc.- the company responsible for the Barbie doll - are to create a new line of clothing for girls called "Barbie Loves Benetton". According to Benetton, who made the announcement this week, the line will feature fashion from "the world's leading style capitals - London, Paris, New York and Stockholm" and four dolls.
The company said that the clothing line and special edition dolls will be sold in Benetton stores from 15 September as well as in toy stores. Benetton did not reveal the amount that the collaboration is expected to generate.
www.benetton.com
www.mattel.com
5 May 2005
Financial results for Benetton
Italian fashion concern Benetton has reported consolidated revenues for 2004 of € 1.686 million (£1.20 million), in line with previous reports. Net income was estimated at 7,3 per cent of total revenues. Operational income was estimated at 12.8 per cent of the revenues.
Last week the fashion giant examined the preliminary consolidated results for 2004, as well as the consolidated forecast for 2005. An improved financial position of approximately € 440 million is represented by free cash flow valued at € 170 million. This improvement was achieved despite a tax payment of € 125 million.
The Benetton Board has given management a mandate, for the first half of 2005, to negotiate with the banks about a revolving line of credit, with a maximum of € 500 million.Furthermore, the Board has estimated consolidated revenues for 2005 between € 1.620 million and € 1.650 million. Net income for the coming year has been estimated at 6 per cent of the revenues.
The CEO of the Benetton Group, Silvano Cassano, said: "We have chosen to respond forcefully and decisively to a highly competitive market in the context of a very weak international economic scenario. We are concentrating with ever greater determination on the realisation of the Guide Lines 2004-2007, presented in December 2003, bringing forward and strengthening policies already provided for, aimed at reinforcing and increasing the cohesion of our network of commercial partners".
www.benetton.com
7 March 2005
Benetton focuses on Far East
During a review of Benetton's financial results and projections last week, the Board indicated that, on the commercial front, attention would be on the development of emerging markets.
Markets like China and India would be tapped into, partly through agreements with local retail chains, in order to open shop-in-shops in major department stores in the principal cities.
Particularly in India a 50 per cent joint venture has been acquired, which gives Benetton total control of the manufacturing and commercial capacity in the country.
www.benetton.com
8 March 2005
Benetton Bites Back
Italian clothing giant Benetton says a gruesome new campaign aimed at forcing the company to boycott Australian wool is "unjustified and defamatory". Benetton said the US-based People for the Ethical Treatment of Animals (PETA) was using the company's high-profile name to give international visibility to its own cause. Benetton is one of a number of multi-national clothing companies targeted by PETA because of its refusal to boycott Australian wool.
"PETA has decided to improperly use the prominence of the Benetton brand, associating it - in a self-serving and speculative manner for which the association will be called upon to respond - to crude images that have nothing whatsoever to do with the Groups activities of clothing manufacturing and distribution," Benetton said in a statement.
www.benetton.com
16 December 2004
Benetton PETA target
American animal rights activists have named Benetton as their next target after the multi-billion dollar Italian fashion house ignored threats to drop Australian merino wool from its products. Benetton, with 5,000 stores worldwide and USD2.6 billion in annual revenue, is a major user of Australian wool for its high-end jumpers, suits and other products.
The US-based People for the Ethical Treatment of Animals says it has lobbied Benetton for more than a year to stop using Australian merino wool but received no satisfactory response. PETA has branded the Australian wool industry as one of the most violent industries for its use of a technique called mulesing. It is campaigning for US and European fashion retailers to boycott Australian wool until mulesing is stopped.
www.benetton.com
15 December 2004
Benetton Photographer In-Mates Exhibition
Oliviero Toscani, the photogapher who famously photographed in-mates for a Benetton ad, will be showing his photo's of death row inmates in a new exhibition. The exhibition, entitled We, On Death Row, is to be based at the Boiler House in Brick Lane, east London, and features 26 images measuring an imposing 1.5m by 2m.
For Toscani, who once stated "there's no such thing as going too far", there was an element of satisfaction that his work was being used with a clear message that was completely disassociated from Benetton. "In the beginning, Benetton was right behind the campaign, but then they became afraid of the reactions," he said.
"At the end of the day, a company only wants to make money. Benetton could have gone down in history as the first company to fight for human rights. But sadly managers prefer profits to human rights."
www.benetton.com
13 December 2004
Benetton Gives Land To Indigenous Indians
Italian clothing company Benetton offered to give Mapuche Indians a portion of its vast lands in Argentina's Patagonia, which the Indians have sought to claim as ancestral lands. In a goodwill gesture, Benetton has offered to donate 6,178 acres of its nearly 2.2 million acres to Adolfo Perez Esquivel, a Nobel Peace Prize winner who has backed indigenous birthright claims to the lands.
''Luciano Benetton has announced in a letter to Adolfo Perez Esquivel ... that
he will put at his disposal 2,500 hectares of good-quality, productive Patagonian
land ... which he may use as he sees fit to benefit local indigenous groups,''
Benetton on Monday said in a press release.
Perez Esquivel was not immediately available to comment on whether he had accepted
the donation.
Relations between Benetton and the Mapuche community have been poor since an Argentine judge in May ordered a Mapuche family to leave the Patagonian farm it occupied in 2002, after a Benetton unit proved ownership of the land. Mapuches trying to eke out a living off the land have occupied several estates in Argentina and Chile in recent years as part of a campaign for land rights.
Benetton owns vast tracts of farmland in southern Argentina, where it rears sheep to provide wool for its garments. The company says it employs 600 people. ''This step represents a concrete gesture, with an eye to opening a realistic dialogue and mediation on the question of Patagonian lands,'' Benetton's statement said.
www.benetton.com
11 November 2004
Benetton Colours Remain Bright
Almost 50 years ago Luciano Benetton came up with an idea that took the world of fashion by storm. His bright, casual sweaters would be dyed after they had been knitted so that stores could restock faster with the most popular colours. From artisanal origins in Ponzano Veneto, the shops of the United Colors of Benetton spread across Europe and America, promoted by provocative and controversial advertising.
But times change and colours fade. Early this year, there were whispers that the Benetton family might be in financial trouble. The figures, though, show something rather different: Edizione Holding, the Benettons' holding company, owns investments with a market value, after deducting debts, of around 6 billion ($7.3 billion).
Diversifying out of the business that the Benettons knew well, the fashion industry, has worked surprisingly well for one of Italy's best-known family concerns. The Benettons' success in clothing relied on a supply chain of outsourced production tied together with a computerised logistics system, which was well ahead of its time.
By the late 1980s, however, imitators and competitors were catching up. Firms such as Sweden's H&M and Spain's Zara have recently given the Italian company a tough time in high streets and shopping malls. Rumours about financial worries, however, seem to have been prompted by the Benettons' big spending on other businesses. Not content to stick to its knitting, the family has invested heavily over the past ten years in Italian privatisations, usually as part of a consortium.
www.benetton.com
26 October 2004
Benetton Online
Benetton has two new websites. The goal is to meet the demands and needs of final customers, and of all Benetton shareholders, media operators, investors, and students worldwide. The new website - www.benetton.com - informs a statement - is the tool for the final user. It joins the www.benettongroup.com website, that's the corporate one, which communicates the group's financial results and creative projects to the world.
www.benetton.com
24 September 2004
Woolies With Attitude
For those who remember the iconic Benetton logo sweatshirts from the early 1980s, the label has gone through the archives to bring us the retro Benetton Colour Project. This collection shows Benetton's colour trademark at its strongest, and with prices ranging from GBP32 to GBP65, it will prove hard to beat.
www.benetton.com
10 August 2004
Benetton Settles Olympic Dispute
Benetton and the British Olympic Association have settled a dispute over the use of Olympic symbols and wording on a range of children's clothing, with Benetton agreeing to pay damages and costs, according to reports.The dispute concerned a range of Benetton's children's clothing that featured the Olympic Rings, the word "Olympic" and in one case, the word "Official", without permission.
The commercial use of these words is restricted by the Olympic Symbol etc (Protection) Act of 1995, which gives exclusive rights in these words, with a few exceptions, to the British Olympic Association (BOA) and its partners.The BOA objected and Benetton removed the items from sale and gave undertakings not to infringe upon the BOA's rights in the future. However, because Benetton refused to pay damages and costs, the BOA took the matter to court.
Benetton has now agreed to pay a substantial five-figure sum in damages and costs, the BOA's solicitors, Farrer & Co, advised on Friday.According to in-house BOA lawyer, Sara Friend: "The Olympic Symbol is arguably the most famous logo in the world. This legal action shows that the BOA will take all necessary steps to enforce its rights in order to protect our sponsors against ambush marketing."
www.benetton.com
28 July 2004
Benetton Land Dispute Continues
Italian fashion house Benetton is defending itself against allegations of taking 385 hectares of land from indigenous people in Patagonia. In a letter to the high street retailer, Argentine Nobel prize winner, Adolfo Pérez Esquivel, attacks the company's chairman over his family's eviction of Mapuche Indians from land it owns in Argentina.
Mr Pérez Esquivel accused him of behaving "with the same mentality as the conquistadores" and added: "You don't need weapons to achieve your objectives. But you kill in the same way, using money." "We have simply followed the economic rules we believe in," said Mr Benetton, whose family, according to Forbes, is the owner of the world's 100th biggest private fortune.
At the origin of this potentially immensely damaging row is a plot of land in ruggedly beautiful Patagonia that covers just 385 hectares of the 900,000 hectares the Benettons own in Argentina. The Italian family's holding company acquired vast expanses in 1991 at a time when many foreigners were drawn to windswept Patagonia by the combination of a newly-liberalised economy and rock-bottom land prices.
Mr Benetton said yesterday the case "raises moral and philosophical questions as ancient as the world". The Benetton family acquired its land in the area by buying a company that had owned it since the 1890s. The judge ruled that its title took precedence over the Mapuches' ancestral rights. But the family's supporters argue that the Argentine constitution guarantees indigenous peoples the possession of land they have traditionally occupied.
In this case the issue of possession is particularly poignant. The land currently owned by the Benettons was originally given to a British-owned firm in 1896 after a bloody military campaign in which thousands of indigenous people were killed or driven out.
Striking a similarly philosophical note, Mr Pérez Esquivel asked Mr Benetton: "Who bought the land from God?" He added: "Local people call your ranch 'The Cage'. Wired in and closed off, it has trapped the winds, the clouds, the stars, the sun and the moon. Life has disappeared, because everything has been reduced to its economic worth."
www.benetton.com
14 July 2004
Benetton Sues Indian Couple Over Land
In a most unfashionable court battle, Italian clothing giant Benetton has won a court case against a Mapuche Indian couple in southern Argentina over a disputed strip of land. A judge in the town of Esquel ruled in favour of the company in the dispute over the ownership of some 500 hectares of pampa in the Patagonia region. The Mapuche are an indigenous group inhabiting southern Argentina and Chile, whose way of life is considered under threat by international human rights groups.
The story began in 2002, when the Compania de Tierras del Sud Argentino - a subsidiary of Benetton - lodged a complaint against the Mapuche couple. Rosa Rua Nahuelquir and Atilio Curinanco had occupied a plot of land known as Santa Rosa, where they began to sow fruit and vegetables and rear animals. Benetton accused them of illegally settling on the land, and they were evicted a few weeks later.
The Benetton group - run by the brothers Carlo and Luciano Benetton - owns 900,000 hectares of land in Argentina, mainly in Patagonia and the province of Buenos Aires. Alberto Mazzuchelli, a spokesman for the Benetton subsidiary, denied it was violating the Mapuches' territorial rights. "We don't want to harm this Mapuche family in any way; we are only asking for the land belonging to us to be given back," he told the Argentine daily La Nacion.
Atilio Curinanco warned of "a big dispute" with Benetton. "Let it be clear to Benetton that it's not so easy to throw me out," he said. "It didn't show me any papers saying it was the owner, and it showed a lack of respect for the whole Mapuche people."
www.benetton.com
2 June 2004
Benetton To Focus On Social Responsibility
At the 3rd conference on Ethics and Economy in Italy this week, retailer Benetton spoke of the importance of social responsibility.
President Alessandro Benetton stated that social responsibility is an important tool to improve financial performance, internal cohesion processes, and operating management. Meeting the customers' needs is a crucial factor, but the fulfilment of it is inevitably linked to the entrepreneurs and managers' capacity to boost development in their operating territory.
www.benetton.com
29 April 2004
Benetton Targets South America
Italian retailer Benetton has plans to vigorously expand in Latin America in the next two years, since of the 100 million garments the company sells annually only one million are purchased in the region.
"Latin America only represents 1% of our sales, but as the economy stabilizes and begins picking up we could in a few years reach 3 million garments, with Chile as one of the leading countries given its stability", explained Luciano Benetton.
The Benetton family considered the third richest in Italy worth € 4,5 billion and has a distribution network of 5,000 outlets in 120 different countries (15 of them Chile), most of which work on a franchise system with standard models. In spite of the recession, profits in 2003 reached € 120 million.
www.benetton.com
27 January 2004
Benetton To Close More Stores
Benetton will close at least three major London stores as part of its ongoing property review that may lead to a shake-up of its portfolio in the South-East. Speaking at a strategy presentation in London, Benetton chief executive Silvano Cassano admitted it had been a tough 18 months in the UK. He said stores in Oxford Street, at Brent Cross, and one of the Sisley or Benetton stores in Kensington would close.
The company's Bluewater store is also believed to be a possible closure. Benetton opened a 20,000sq ft store at Birmingham's Bullring in September but is believed to have tried to offload the store prior to the opening. Cassano further stated the Oxford Circus flagship was not under threat: "I cannot fail at Oxford Circus. The store is better than any advertising."
Benetton is trying to drive sales by boosting average selling price, with menswear, which is more expensive than womenswear, growing in size by a third. It is also trying to make higher-priced hanging garments account for 15 per cent to 20 per cent of sales against the current 9 per cent.
16 December 2003
www.benetton.com
Benetton Unites With New Fragrance
Benetton expects its new fragrance duo, B.United, to become a key line in its beauty portfolio. The duo, expected to launch in February 2004, "will receive more investment than other Benetton fragrances. We would like it to become a major fragrance for us," Benetton sales and marketing manager Paola Ugolini tells BBN.
The women's fragrance comes in a translucent pink bottle featuring half of the Benetton logo, and the blue men's bottle features the other half of the logo-which appears whole when the two are side by side.
4 November 2003
www.benetton.com