Benetton Group approves aggressive brand strategy

The Benetton Group’s Board of Directors approved the

three-year program to refocus the business. This program is designed to provide maximum market competitiveness for Benetton Group brands through comprehensive innovation in the corporate structure, with a refocusing of the areas of the company’s activities. The program also aims to complete the process to rethink, refocus and relaunch which began in 2012, an action that is starting to give its first results, including improved cash generation and disposal of a limited number of properties no longer in line with the positioning of company’s brands.

The three-year program approved today will have a clear focus on the brands, a manufacturing component and a real estate management component. Company believes that with this strategy, it will be able to respond with increased effectiveness to market scenarios. Under the program, United Colors of Benetton and Sisley will be the two main Benetton Group brands in the diverse competitive arenas of the market. Company will focus on investment in directly controlled key and flagship stores; further develop new concepts for retail outlets; and a strong geographic focus to target key countries.

The main objectives of the program, at the end of the three years, are to maintain substantially constant turnover, to offset the exit from no longer strategic countries with like-for-like sales growth, and to improve profitability.

Benetton Group and Puig have joined hand to form an exclusive, long-term global license agreement starting January 1, 2014, to create, develop and distribute new lines of United Colors of Benetton fragrances.