Benetton Is Adding 40 Direct Stores In Russia In 3 Years.

United Colors of Benetton Benetton opened its upgraded flagship store in central Moscow last week, the brand parent company, Italy clothing retailer Benetton Group SpA Benetton Group as a brand to expand the Russian market focused on the beginning.

Despite geopolitical tensions, western economic sanctions, devaluation of the local currency and slowing global growth, United Colors of Benetton, which has relied on local partners and authorised businesses for 22 years, still plans to add 40 new Russian stores by the end of 2017. Benetton Group SpA CEO Marco Airoldi believes that the current crisis in Russia is only a brief phase, and that consumption will eventually regain growth.

Because Benetton Group SpA did not Russia Suppliers, therefore, have some concerns about the possibility that the authorities may ban foreign clothing imports in order to retaliate against Western sanctions. Russia imposed import ban on EU and US food products in August this year. In addition, the Russian Ruble's sharp depreciation also made the brand purchased by euro and US dollar very headache.

United Colors of Benetton Benetton now has 100 partners operated in Russia, and only 8 outlets, with an annual revenue of about 100 million euros.

As the group is undergoing large-scale restructuring, the Russian expansion strategy of United Colors of Benetton Benetton has to be postponed until today's harsh political and economic environment.

In May 2012, the Benetton Group SpA parent company Edizione Srl was reorganized after its withdrawal from the Milan stock exchange. In 2013 and early 2014, the Benetton Group SpA was laid off, and a three year restructuring plan was announced at the end of 2013. In the restructuring plan, the group is divided into three individual companies, namely brand management, manufacturing and real estate, which are controlled by Edizione Srl. In addition, in order to streamline the brand mix, the group has ended many brands such as PLAYLIFE, Killer Loop, Anthology of Cottons, Jean'West and so on, so as to focus on developing the core brand United Colors of Benetton Benetton and Colors, and at the same time, the group quit 20-30 non strategic markets, and finally will Direct shop The proportion increased to 25%.

United Colors of Benetton will transform from family brand to Italy popular fashion brand targeting the 25-35 year old urban mature consumer group. Although it will not pursue the operation mode of fast fashion brand, it will enhance the frequency of logistics distribution and increase the frequency of products to shops.

Benetton Group SpA recorded its first loss in eleven years in fiscal year 2013, with a loss of 64 million euros throughout the year. If it does not include the sale of Japanese business headquarters in Tokyo, the loss will reach 300 million euros, which is mainly affected by the sales performance of many brands that have been decided to end. In 2013, revenues continued to shrink, down 10% from 1 billion 800 million euros in 2012 and 12% in 2012.

In May of this year, Alessandro Benetton was officially implemented for Benetton Group SpA to get rid of its 48 year family management goal. With the nomination of Marco Airoldi, the chief executive officer of Benetton Group SpA in April, and the vice chairman of the Benetton SpA mother company, Mr. Hu and vice chairman of the company, a management independent from the family of the Benetto family will begin to manage the company.