NATIONAL INSTITUTE OF FASHION

TECHNOLOGY, CHENNAI.

MERCHANDISING

Assignment . No : 2

Study a store for its merchandise assortment. Profile

the merchandise assortment and come up with a
merchandising policy of the particular store.

UNITED COLORS OF BENETTON

Submitted by

A.Keerthana Bhagyalakshmi

A.Nithyakumari

R.Priya

Anju.K.S
 Benetton Group is a global fashion brand, based in Treviso, Italy. The name comes from
the Benetton family who founded the company in 1965. Benetton Group is listed in Milan.
Benetton has a network of around 6,000 stores in 120 countries. The stores are managed by
independent partners and generate a total turnover of over 2 billion euro.

In 1965, Luciano Benetton, the eldest of four children, was a 30-year-old salesman in
Treviso. He saw a market for colourful clothes, and sold a younger brother's bicycle in order to
buy his first second-hand knitting machine. His initial small collection of sweaters received a
positive response in local stores in the Veneto region, and soon after he asked his sister and two
younger brothers, Gilberto and Carlo, to join him. In 1965, the entity known as the "Benetton
Group" is formed.

In 1966, the Benettons opened their first store in Belluno and three years after in Paris,
with Luciano as chairman, his brother Gilberto in charge of administration, their younger brother
Carlo running production, and Giuliana as a chief designer.

Today, the Benetton Group is present in 120 countries around the world. Its core business
is fashion apparel: a group with a strong Italian character whose style, quality and passion are
clearly seen in its brands, the casual United Colors of Benetton, the glamour oriented Sisley, the
leisurewear brand Playlife. The Group produces over 150 million garments every year. Its
network of around 6,000 contemporary stores around the world, offers high quality customer
services and generates a total turnover of over 2 billion euro.

Headquarters:

Benetton Group's Corporate headquarters is located at Villa Minelli in Ponzano, about 30

km from Venice. Villa Minelli is a complex of sixteenth century buildings of great historical and
cultural interest.

The villa was acquired by Benetton in 1969 and the task of restoring and remodernising the
complex, entrusted to architects Afra and Tobia Scarpa, took over fifteen years. From the mid
1980s Villa Minelli became the headquarters of the Group and home to all its strategic functions.

Around 6,000 stores worldwide:

The development of Benetton's commercial network, characterised by prestigious

locations in historic and commercial centres and by the high level of customer services offered,
has been supported by a major programme of investment worldwide.

The Benetton stores carry complete collections, as well as a wide selection of accessories,
offering a full range of Benetton style and quality.

Design:

A staff of 300 designers from all over the world creates the collections for the casual United
Colors of Benetton, the glamour oriented Sisley, the leisurewear brand Playlife. The design team
is also engaged in researching new materials and creating new lines for different targets from
children, men and women to expectant mothers, offering them not only practical and modern
styles but also maximum comfort.

The result is the latest trends in design and a rich output of many models a year which are
realized with computer assisted design systems fully integrated with the rest of the company's
production phases.

Production:

Consistently high quality is one of the fundamental characteristics of the Benetton

production process from the raw materials to the finished garment.

A constant commitment to innovation, a crucial factor for development, has always

characterized the Group’s business organization, from communication to IT, from research into
new materials to integrated logistics. Special attention is given to innovation in production,
where all systems and equipment are constantly renewed.

The Benetton production system, co-ordinated by a high-tech facility at Castrette (Italy)

is capable of turning out over 150 million garments every year.

Logistics:

Benetton has direct control of the logistics phase for both own manufactured and sourced
products, and has invested in modelling, organization, and automation of logistic processes in
order to completely integrate the entire production cycle, from client orders, to packing and
delivery.

Automated Sorting System

The state-of-the-art logistics operation at Castrette (Italy) has a fully
automated innovative sorting system, whose propulsion is based on
electromagnetic fields, capable of handling individual orders for around 6,000
Benetton shops worldwide.
Folded and hanging garments are automatically sorted, packed into boxes and
sent through a one-kilometer tunnel to the Automated Distribution Center.

Automated Distribution Center

The Automated Distribution Center covers an area of 30,000 square meters,
with a total capacity of 800,000 boxes, and is able to handle 120,000
incoming/outgoing boxes daily with a workforce of only 28.
The finished product is sent directly to the Group's around 6,000 retail outlets
in 120 countries worldwide.
BRANDS:
United Colors of Benetton:

A global brand, and one of the most well known in the world, United Colors of Benetton
has an international style that combines color, quality and fashion. Each season the womenswear,
menswear, childrenswear and underwear collections offer a total look for everyday, for work and
for leisure, in the city and outdoors. The Benetton Baby label is a new product line dedicated to
the prenatal and the under-fives world.

The brand is present in many other sectors, from the elegant accessories to the eyewear
lines and perfumes, from the home collection to baby products. The above products are available
in selected specialized shops worldwide.

Undercolors of Benetton :

This is an extension of the Benetton brand, featuring underwear, beachwear and

sleepwear collections, as well as accessories for women, men and children.

A wide selection of recurring basic colors is enriched every season with the latest trends.
Undercolors is available in its own chain of stores which now has more than 500 locations in
thirty countries and in selected Benetton Shops.

Sisley:

This is the Group's most fashion forward brand. Sisley presents elegant and seductive
collections, with special attention given to the choice of design, fabrics and new shapes.

Its creative artists and independent sales teams concentrate their efforts on its image and
on strong-impact advertising campaigns. The brand has created the very fashionable Sisley
Young line for children from 8 to 12 years old.

Playlife :

This is the Benetton leisurewear brand that redefines a style. With its clean and elegant
collections Playlife blends an exclusive exploration of styles and allusions and a strong sense of
individuality.
 The brand’s new store concept reflects the same values, highlighting their emotional
content.

Merchandise Mix:
The breadth and depth of the products carried by retailers is called as merchandise mix.
This is also known as Product Assortment.

United Colors Of Benetton: Merchandise Assortment

ADULT :

Woman And Man:

United Colors of Benetton chooses a keyword for the Autumn/Winter 2010-11 collection:
freedom, a clear and simple word with many meanings. In this case, the freedom we allow
ourselves when choosing our look every-day.

United Colors of Benetton has always followed this principle and offers even greater
freedom of choice for the new winter season.
Accessories:

The Autumn/Winter 2010-11 United Colors of Benetton accessories and footwear

collection explores new frontiers of in terms of shape, material and colour.

KID:

Mamma:

Future mums will enjoy an A/W collection from United Colors of Benetton that’s big on
comfort and full of the new season’s trends.

Baby (0-1 year):

United Colors of Benetton chooses a romantic, natural mood for the new borns of the
A/W 2010-11 season. Soft fabrics and light, pastel colours combine with prints and drawings to
warm the winter days.
Toddler (1-5 years):

In A/W 2010-11 United Colors of Benetton takes the smallest children by the hand and
accompanies them in their new adventures and earliest discoveries.

Kid And Tween (6-12 years):

For the girls, United Colors of Benetton have created an imaginary tour around the world,
proposing places and moods that evoke the new looks of the A/W 2010-11 season. For the boys,
it’s all about the American way of life.

UNDERCOLORS:

Strong Appeal: A touch of provocative sensuality lets us play with lace, sheer fabrics,
transparencies and softness. Silk and cotton bring sophistication to homewear ideas.

Underwear:

The Undercolors of Benetton winter season opens with a cosy, supremely comfortable
collection and a skilful use of every kind of cotton. New features include a greater number of
organic cotton jersey articles; a special focus on the brand’s DNA (with a logo print motif in
bright colours); and a new bra designed especially for teens.

Basic:

Undercolors of Benetton always dedicates special attention to its underwear proposals,

even those that are commonly defined as “basic”, but whose simplicity, clean lines and colour
palette make them indispensable. In fact, in a colour palette limited to white, black and flesh
tone, a small world of bras, panties, culottes, brassieres, tops and slips has been created.

LIFESTYLE:

Lifestyle is a collection of surprises created by Benetton to satisfy everyone's tastes and

needs. It concludes exclusive fragrances; sunglasses and eyewear frames for men, women and
children; luggage sets for all travel needs; lots of stationery ideas for school; proposals of every
kind for our home.

Verde.Rosso.Giallo.Blu.United (fragrances) :

Benetton is colour: colour celebrating the diversity of the world, colour speaking to every
culture, colour as a universal means of communication. Colour as passion, as instinct, as
something to which we all share the same spontaneous human response.

Like colour, fragrance is a universal language, communicating through intuition, emotion

and evocation. Now colour and fragrance come together in a collection of scents inspired by
Benetton's legacy – a legacy of creativity, universality and youthfulness, with colour at its heart.

A collection of four perfumes representing an homage to Benetton's history and presence,

inspired by the iconic colours and the wool stitch - timeless elements of the brand's DNA.

Adult Eyewear:

Glamour and originality distinguish United Colors of Benetton eyewear. A wide range of
frames with all the colour, energy and comfort you would expect from Benetton.

Adult Sunglasses:

The United Colors of Benetton sunglasses are coloured according to tradition: trendy but
without going to extremes. It is a collection with wrap-around frames and shaded lenses for
unique and unmistakeable proposals.
Kid Eyewear:

The United Colors of Benetton kids eyewear collection is characterized by dazzling

combinations of warm tones of red, orange and pink, complimented by colder sparkling shades
in white and light blue. Shapes are inspired by both the adult eyewear collection and the
Benetton apparel lines. The United Colors of Benetton kids frames are light and comfortable, and
the bright colors and decorative detail ensure this eyewear is both fun and practical for kids to
wear.

Kid Sunglasses:

The simple and brightly coloured United Colors of Benetton sunglasses maintain the
balance between style and health, one of the collection’s strong points, with very high quality
lenses and jaunty frames.

Travel Bags:

United Colors of Benetton luggage will make us conveniently travel in comfort and style,
accompanied by the latest in technological design wherever we go. They are meant for a
traveller, pleasure-seeking tourist or adventurous explorer.They are available in a wide variety
ranging from ergonomic handles to smooth wheels and hard-wearing material goes hand in hand
with a wide range of colours.

HOME COLLECTION:

Bed Linen:

UCB helps us to experience the fun of choosing from the Benetton Bedlinen Collection
and light up our night with colours and cheerful super-softness.

Terrycloth:

UCB has introduced new colour combinations, unique patterns and cloud-soft velour
fabrics, the 2010 Benetton Terrycloth Collection which will certainly freshen up the summer.In
the bathroom, one can enjoy wrapping him/her in colours and stripes with UCB’s "new sunny"
robes, or pamper at the spa with the softness of the "honey whippy" Collection.
 Whether soccer fan or simply outdoor sports lover, kids are sure to find their match this
year with the "soccer" or "blooming world" towels and robes. Conceived for the most loyal and
sophisticated United Colors of Benetton fans, "face2face" and "native" beach towels not only
feature attractive colour combinations and innovative prints but also unique weaving techniques.

Garden Cushions:

UCB brings fresh colour to our garden with the new cushion collection .Whether the
preference is for stripes, checks or floral prints, this new line is an invitation to enjoy some
quality time, relaxing under the clear blue sky.

Table Top:

Featuring the latest trends and cutting edge designs, the new United Colors of Benetton
Tabletop melamine collection is a great way to give dinners, parties or picnics a fresh new,
carefree touch. Available in multiple colour combinations, the jugs, glasses, mats and trays are
perfect for use anywhere from the garden to the kitchen or even the beach.

STATIONERY:

A wide range of colourful items for writing and studying is available.

MERCHANDISING POLICY OF UNITED COLORS OF BENETTON:

Benetton Group (the "Parent Company") and its subsidiary companies primarily
manufacture and market fashion apparel in wool, cotton and woven fabrics, as well as
leisurewear. The manufacture of finished articles from raw materials is undertaken partly within
the Group and partly using subcontractors, whereas selling is carried out through an extensive
commercial network both in Italy and abroad, consisting mainly of stores operated and owned by
third parties.

Return Policy:

Unworn, full priced merchandise with tags attached and accompanied by the original
receipt can be exchanged within 14 days at the store of purchase. There will be no refunds or
store credit. All sale merchandise is final sale. For hygenic reasons all sale of underwear and
inner garment are final, returns or exchange of these items will not be permitted. Payments made
by Credit Card, will receive the applicable amount credited to the card account within 14
working days .
Collections Structure:

Flexible and segmented structure has also been introduced for UCB kids, Sisley and
Playlife proposals, adapting the commercial calendar to their specific positioning.

UCB collections, both Spring/Summer and Autumn/Winter, are now more structured and
modular, with several proposals to guarantee frequent in-season deliveries to our store network.

Each collection is characterized by different proposals with several themes, offering

products sensitive to market trends and fashion moods and maximising stores' attractiveness, in
order to satisfy the requirements of the most demanding customers.

The structure also involves a segment of products known as Capsule, capable of

presenting fashion-forward garments and accessories at any time during the season.

Moreover UCB offers additional service to the network with Continuative Items, which
ensure that collection's core products are restocked as quickly as possible. Orders for these
products are entered directly, and as the information systems of the production and logistics units
are linked, the system provides immediate confirmation and guaranteed delivery times (first in,
first out).

Latest Promotional Activity : LUCKY YOU

From 30 October 2010, customers purchasing in a single transaction three items from the
United Colors of Benetton “Toddler” and “Kid” (from size 74 to XXL) lines among those
marked with the special LUCKY YOU sticker will receive the cheapest item free (subject to
availability in-store at the moment of purchase).

The promotion will be valid at participating “United Colors of Benetton” stores,

displaying the special “United Colors of Benetton. Lucky you” advertising posters.

The UCB’s product merchandising policy is also important in its success because they
emphasized a climate of scarcity and opportunity. So, its consumers know that if they like
something, they must buy it in this moment and not later. All these characteristics makes UCB a
business model difficult to imitate and for this reason its competitive advantages are more
sustainable.

In conclusion, Benetton uses knowledge management to balance structure and creativity.

They recognize that both creativity and structure is crucial in ensuring the success of the venture.