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    Who Else Is Wearing Benetton Clothes?

    2011/7/1 11:58:00 90

    Benetton Communication Pattern Sweater

    Benetton is a brand that is always related to color. It aims to dress the world with color, from colorful costumes to different races of skin. Through a strong supply chain management mode, it realizes a brand without borders. Communication mode 。


    In 1960s, Benetton was born in a family workshop in Italy. At first, the Benetton Pullover was woven by Julianna, the four siblings, with a bright color to distinguish the British ones. Cardigan With bright Mediterranean and South American style, bright and colourful colors become the characteristics of Benetton. Today, Benetton has established a consumer culture catering to the tastes of teenagers and has many loyal customers. By 2009, the Benetton group had more than 6000 retail outlets in more than 120 countries, producing about 150 million garments annually.


    Fashion characteristics


    In the field of knitting as the core leisure apparel, Benetton is in the leading position of the times. Benetton Maverick style embodies the values of the younger generation. Benetton has made cultural exchanges between different parts of the world, clearly showing different customs, customs and lifestyles, enabling consumers to enjoy exotic customs and culture, as if they had experienced the pleasure of traveling and exploring.


    marketing strategy


    Characteristics of supply chain of Benetton


    Benetton applies an effective marketing strategy, producing and distributing 50 million garments annually to more than 4000 stores worldwide. In the fast fashion and fast changing international clothing brand market competition, we have won the market share and sales profit in the continuous segmentation.


    Benetton, from sales to manufacturing plants to product warehouses, applies computer management systems. If a franchised store is out of stock, the sales agent will immediately know it and will send the order to the host in Italy. The host reads information about the style, color and size of the garment and transfers it to the braiding machine. After the machine has produced the garment, the factory workers put it in the installation box and sent it to the warehouse. The barcode in the packing box contains the address information of the shop. Although there are only 8 staff members in the distribution center, 230 thousand clothes are processed every day. Once the store is needed, the computer will immediately enable the robot to run and read barcode, and find out the cargoes in the 300 thousand cargo spaces of the warehouse, loading them to the sales locations.


    Flexibility to deal with uncertainty


    In many cases, even if the end-users' demand for products is stable, the distortion of demand signals is still possible in the supply chain. In response to uncertainty, Benetton's "postponement strategy" has produced significant results.


    In the clothing industry, dyeing is usually started after the manufacturer buys the raw materials. After dyeing, the raw materials can start to run in water until the final product is finished and distributed. But Benetton put the coloring on the end of the production process, that is, the original product of Benetton has no color, and then dyed different colors in the later stage according to the needs of customers. This will make the company more flexible in dealing with market demand and adjusting production, and at the same time, the inventory can also be significantly reduced.


    Benetton opted for factory production and supply in large quantities and stable sales of textiles. For highly flexible new products, flexible factories are used to obtain flexibility and high premium in the market. The double response supply chain is for many companies both fish and bear's paw.


    Advertising strategy


    The controversial advertising of Benetton is hard to ignore. It has successfully applied the power of modern media, which is one of its most successful brand promotion strategies. At the same time, it also did not give up regular regular clothing advertising, get as many exposure as possible and a wider audience is the ultimate goal of advertising.


    Careful assessment reveals that the relatively controversial series of advertisements of Benetton are few and often banned. Consumers often see Benetton advertisements on the news page. If viewed from the perspective of integrated communication, Benetton has been misunderstood and misunderstood, but it is doubtless that Benetton's advertisement has received the most coverage, and its effect is just like that of other brands having launched a large-scale promotional activity.


    Since 1985, Benetton has shown two different concepts of advertising and news. One is about the characteristics and harmony of clothing itself, and the other is the conflict of social issues. After much attention has been paid to the controversial part, Benetton has not forgotten the duty of fashion clothes in pursuit of renovation, so ordinary advertisements have not stopped. {page_break}


    classic case


    "Fading" and "accelerating"


    The colorful multicenter began to fade. Despite its excellent supply chain system and distinctive marketing promotion, Benetton has been a great success brand in the past 30 years. But on the list of the 100 best brands in the world jointly selected by us business week and Interbrand, it has also got a comment on the current predicament of the brand: "advocating tolerance and controversial advertising to make it famous, but who else is wearing Benetton clothes?"


    Due to the impact of the financial crisis, the company's profit fell in 2009, from 115 million euros in 2008 to 122 million euros, down 3.7%. The income of costumes is 870 million euros less than that of 2008.


    Facing the decline, the company began to implement the reorganization plan, and improve the efficiency of the supply chain as the main objective. They first launched WIDE (Worldwide Intergrated Distribution Enterprise) in North America to manage the entire freight flow. The adoption of these logistics initiatives resulted in a 55% reduction in logistics costs. For example, the time that a piece of goods was shipped from Italy to the United States decreased from 22 days to 7 days. Benetton has realized that if we want to restore the past glory, we must "accelerate" to catch up with the rising stars of "fast fashion".


    Strategy analysis


    Almost all of the competitors of Benetton are international retailers (Gap, H&M, Zara). They formed their own international production network based on the consideration of economic benefits (the lowest labor cost and the least influence of international trade constraints), and basically realized the whole external operation.


    Benetton is catching up with the rising stars such as Zara and H&M in the fast supply chain system, and its scenery is no longer good. Despite its financial crisis, its traditional business model leads to declining performance. Especially in the battle against emerging markets, the performance is poor. When the first H&M entered China's Shanghai, it took the place of the original Benetton flagship store and replaced it.


    The biggest difference between Benetton and the above brand lies in its strong vertical upstream value chain integration operation and management of the internal production of the 32 production centers, while most of the other brands are for production outsourcing, though it is conducive to overall management, but the enterprises are too large and low in flexibility. Therefore, the design becomes more fashionable and needs to be more rapid at the same time. This requires manufacturing process and logistics system reform, optimizing collaboration, shortening unnecessary links, and rationally distributing resources to highlight its strong supply chain system advantages.


    Deficiencies


    As a popular fashion brand with a clear brand image and high brand awareness, Benetton has won double harvest of clothing sales and social influence through creative double strategy advertising promotion and powerful supply chain. At the same time, because of the disadvantages of family businesses, the supply chain is slow and heavy, and loses competitiveness when facing fast emerging brands. Therefore, efforts should be made to segment the market, occupy favorable addresses and expand new channels.

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