Camuffo (2001)

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Changes

Faster market responsiveness. Benetton has decreased its customisation, from 20% to 5% of styles customised in each country. The company has in-store testing for a more thorough understanding of customer expectations and has increased “flash collections”. Combined, Benetton can respond to last minute changes in the market more quickly

Forward integration. Benetton’s previous strategy was to entrust retailing to third parties. That is not enough now and the firm is opening its own stores in order to compete with the aggressive approach of its competitors on the high street

Diversification. The firm has diversified into the sports segment, where the relationship between players is completely different, including big distribution chains, specialised shops and retail agents. Benetton must compete with other producers for distribution channels. Retailers also place brands with each other so customers can choose from a set. The world market for sportswear is nearly saturated.

To combat these challenges, Benetton is trying to secure “corners” in shops, dedicated to displaying and selling only Benetton clothing

Benetton is aiming to have clothes for both ends of the market – premium and economy, to draw in as many consumers as possible. It has concentrated its management of sportswear at Castrette so as to exploit as many synergies in clothing as possible

Production process changes. In re-organising the production process, Benetton has two goals: to expand the knowledge base and minimise manufacturing and transportation costs.

1. The company is setting up an R&D centre with more than 100 people in an open space area, in order to gain synergies from knowledge sharing.
2. Benetton has re-located some of its manufacturing plants in low-cost areas

Internet. The company is now on the Internet, which it uses to sell its products, but which it is also using to improve procurement and online services for the distribution network

“Entering the ebusiness world is consistent with the company’s communication strategy and with its attempt to provide consumers with a comprehensive experience, a lifestyle”