Benetton sees India among top three markets in five years

Italian fashion clothing company, Benetton is looking at India as one of its top three markets in the next five years. This was confirmed by the company’s international business director Michel Lhoste yesterday, as he pointed out India as one of the top five revenue markets outside Italy for the retailer that owns the United Colors of Benetton and Sisley brands. Lhoste says, they expect volumes to double in the next five years from about 10.7 million pieces a year at present. The brand’s average selling price in India is lower than most markets, essentially where winter clothing is a dominant category. But, the growth rate is high. Lhoste has taken over as the interim chief executive for Benetton India after Sanjeev Mohanty left in November to join online fashion retailer Jabong as chief executive.

Lhoste is working on a three-year action plan for India as feels the country is growing faster than most the European markets. And with high internet penetration and e-commerce it has emerged as one of the fastest in the world. The brand is looking to leverage its presence in the country and grow further. Lhoste feels, India holds better opportunity than Germany (the largest market outside Italy) for Benetton.

Meanwhile, Benetton is transforming all its 791 stores in India into its ‘On Canvas’ concept store. The first such store opened in Piazza del Duomo, Milan’s main city square, in April 2014. India is the first Asian country where Benetton is bringing these concept stores. Its first such store in New Delhi, the only one in India so far, has seen a 20 per cent surge in sales, Lhoste said.

As for opening new stores in India plans is to take it easy. While earlier, the brand opened around 100 stores a year, in 2015 they opened 85. Going forward, the number they are looking at is around 50 a year. Lhoste says they plan to invest more on transforming existing stores, along with franchisee partners, in communications. Meanwhile, they are also in search for a India chief for the brand.