List of Figures

Figure 1: Luciano Benetton .................................................................................. 3

Figure 2: Alessandro Benetton.............................................................................. 5
Figure 3: United Colours of Benetton Pvt. Ltd. Office, Gurgaon ........................ 8
Figure 4: Front View of Benetton Office.............................................................. 9
Figure 5: Business Model of UCB ...................................................................... 10
Figure 6: Proportion of Range ............................................................................ 13
Figure 7: Parameters of Buying .......................................................................... 15
Figure 8: Range Classification of Spring Summer’20 ........................................ 18
Figure 9: Process of Buying Department ............................................................ 19
Figure 10: Reference for Range Book ................................................................ 22
Figure 11: Themes of SS’20 ............................................................................... 22
Figure 12: Reference of Category Sheet ............................................................. 23
Figure 13: Range Display Area of Trade Show for SS’20 ................................. 24
Figure 14: Competitor Brands ............................................................................ 33
Figure 15: Reference Slide for Competition Mapping ....................................... 35
Figure 16: Graph Depicting growth rate of all categories in girls ...................... 37
Figure 17: Depicting Denims Option count in different Price points................. 37
Figure 18: Depicting option counts in knit bottoms ........................................... 39
Figure 19: Depicting option count in woven bottoms for all the Brands ........... 40
Figure 20: Depicting Option Count in Dresses ................................................... 42
Figure 21: Depicting Option count in Dungarees/Jumpsuits .............................. 43
Figure 22: Management Hierarchy Of Buying Department ............................... 49
Figure 23: Store Classification of Benetton ........................................................ 49
Figure 24: Organizational Hierarchy of Benetton .............................................. 50

1
 CHAPTER 1
1. INTRODUCTION

1.1 OVERVIEW OF THE COMPANY

Benetton Group is a global fashion brand, based in Ponzano Veneto, Italy. The name comes
from the Benetton family who founded the company in 1965. The company was founded by
Luciano Benetton in 1965 who was a salesman based in Treviso after his sweaters had
received a very good response in the local stores of Veneto region, Italy. Presently the
company has about 6500 stores worldwide in about 120 countries. The stores are managed by
independent partners and generate a total turnover of about 2 billion euros worldwide. The
product categories offered include men’s wear, women’s wear, children’s wear,
undergarments, nightwear, perfumes, travel bags and luggage.

Benetton can be associated with a clothing line that has a strong Italian character in its design
and style. The major competitors of Benetton worldwide are Zara, H&M and Gap. In the
Indian market, the competitors are Tommy Hilfiger, Vero Moda, ONLY, Guess, Levis, Jack
and Jones, Zara, Forever 21 and many more. In order to beat their competitors and meet
customer preferences the Design team of Benetton focuses upon developing new colors and
designs for their respective product line. A major factor contributing to the company’s
success is its consistent brand image across all countries, focus on the visual merchandising
and maintaining strong relations with their vendors and partners. The company also has its
own communication research Centre Fabrica which launches the Colors magazine every
quarter which mainly focuses upon issues prevalent in the world. In 2004 the company also
launched its own web site Benetton.com which acts as a virtual shopping Centre for its
customers and a platform where the company can communicate the company’s philosophy
and ideas to its customers, stakeholders, suppliers and employees. In the 1960s and the 1970s,
Benetton’s promotional strategy was focused on shops, advertising huge expenditures being
out of reach at the time. The first My Market shop format was designed by Tobia Scarpa, son
of the famous architect Carlo Scarpa. He suggested eliminating the counter, arranging all the
sweaters on shelters, and opening the window towards the interior of the shop. This way, the
same room could be used for stocking, selling and displaying merchandise.

Most of the shops were not company-owned, but informally franchised to shopkeepers
paying no royalties and granted no exclusive right. Independent agents recruited franchisees
and collected their orders. The presence of several shops in the same urban area produced a

2
positive iteration effect on final customers, and a dissuasive effect on competition. (Benetton
Official site, 2019)

1.2. FOUNDER OF COMPANY:

LUCIANO BENETTON

Figure 1: Luciano Benetton

Luciano Benetton is founder of Benetton Group, listed on the stock exchanges of Milan. He
is also on the Board of Directors of Edizione S.r.l, the family-owned financial holding
company and was a Senator of the Italian Republic from 1992 to 1994. In 1968 was opened
in Paris the first store outside Italy, the first step in the international expansion and
development programmed outside Italy. In 1969 was created the first line for kids, in
response to demand from adult customers already loyal to Benetton's multicolor products. In
the 1970s, the company started producing also jeans and velvet trousers, shirts and T-shirts,
in order to allow customers to find a coordinate set of apparel inside its shops. With its
combinable collections, Benetton helped developing Italian casual style. In these years it
aimed to conceal its expansion, in order to escape social and political tensions, prevent unions
from meddling with its informal production and distribution network, and keep on moving as
a little family business despite its growth. In 1974 Benetton Group enlarged its brand
portfolio, expanding product offerings, with the Sisley Brand adding a new target to its
consumer base. Benetton’s name never appeared on the sign of the shop, but only on single
items (with the wool-knot logo that became famous in the 1980s). Low visibility allowed not
to alarm competition, and marked off the company from shopkeepers commercial policies. At
the end of the 1970s Benetton met its first difficulties in sales. This crisis made the
entrepreneurs aware that the company had reached a threshold in scale, and that a
reorganization was needed in order to avoid a downsizing. Awareness came along tentatively,
buying and then selling shops and plants, and trying to expand in Europe in order to make up

3
for the saturation of Italian market. Indeed, it was only in the attempt to expand sales abroad
that franchising was used on purpose to enter new markets, and became the driving element
of a new strategy for growth. In 1980 Benetton expanded sales in the Americas (NY) and in
1982 in Asia (Japan) adopting a new step-by-step entry strategy, firstly licensing local
producers to use its trade mark, then entering in joint venture with them, and establishing a
local branch of the company only when the market had shown its development capacity. In
this project, brand promotion was a basic point: advertising expenditures increased then
more, in order to promote a colored, multi-ethnical and global image of the company.

In the second half of the 1980s, the success of commercial expansion in Europe urged an
adjustment of international strategy. Western Europe had become Benetton’s real domestic
market. The Group continued its international expansion and by the end of 1985, Benetton
sold its products in approximately 60 countries through 3,200 stores evolving towards an
industrial company, with manufacturing operations in Italy and outside the domestic market.
Since 1983 advertising design had been entrusted to the Parisian agency Eldorado, employing
the photographers Bruno Sutter and Oliviero Toscani. In the 1984 campaign ―All the Colors
of the World‖ Toscani put together white and black young models wearing colored clothes.
He introduced then the ―United Colors of Benetton‖ slogan, explicitly identifying the
company’s globalization strategy with the ideal of a peaceful, multi-ethnical world, which
after the international political changes of the second half of the 1980s seemed at hand. In
1989 this slogan became the logo of the company, and Toscani was hired by Benetton,
breaking the contract with Eldorado.

In 1992 Luciano Benetton stood as a candidate and elected to Parliament, with a move
allowing him insider knowledge of economic policy decisions in those troubled years for
Italy, and putting again his company in the limelight. In 1994 Fabrica was introduced, a
communications research center concentrated on communication projects ranging from
cinema to graphics, from industrial design to music, from publishing to new media to
photography. Luciano Benetton describes Fabrica as a bridge between a visionary dream
between utopia and the reality world facing changes that would have been unimaginable only
a few years ago Fabrica invited students from different countries, with creative talents,
offering them year-long fellowships.

Indeed, troubles were not only for policy makers, in 1990 Benetton’s market position was
challenged by international retailers such as Gap and Zara. Company reacted by adjusting the

4
dimensions of shops to the need of a total-look offer including licensed apparel and
accessories, from spectacles to cosmetics. Average shop area increased from 50 to 200 square
meters, and new megastores were opened in big cities all over the world. The megastore
project forced the company to buy valuable real estate in order to fill strategic commercial
positions. In Early 2000s, the apparel industry started to see a new, demanding and
sophisticated consumer. Benetton introduced a new market approach to compete in the arena,
adding to the core wholesale business some directly operated stores. The group is currently a
market-driven company that can leverage its manufacturing know- how and industrial
efficiency, with consistent focus on improving quality and innovating processes to serve 6300
stores in over 120 countries.

1.3 ALESSANDRO BENETTON

Figure 2: Alessandro Benetton

When Alessandro Benetton founded his holding company in 1992, he called it 21

Investimenti, a name inspired by the 21st century and symbolic of his forward-thinking
attitude. A pioneer of the private equity business in Italy, he was willing to break the mold,
adopting an entrepreneurial approach to provide venture capital to companies he believed in,
enabling them to grow on the worldwide stage. Today, the 21 Group represents a system of
private equity funds with combined assets of over 1.3 billion euros. After completing his
education in the US and training at Goldman Sachs International in London, Alessandro
served as Chairman of Benetton Formula from 1988 to 1998. He became Executive Deputy
Chairman in 2007. In this phase, he guided the company's transition towards a structure with
a clear separation between the roles of shareholder and management.

Since April 2012, Alessandro Benetton is Chairman of Benetton Group, bringing a renewed
vigor to the future of the company. For maximum flexibility of action in facing global trends
and dynamics, the Group decided to delist from the Milan stock exchange. Under his

5
direction, the Group is increasingly international, competitive and responsible and meeting
the challenges of worldwide upheaval head-on, with continued investment and a skilled
organization. Alessandro Benetton is also Chairman of Fabrica, the Benetton Group
communication research Centre. (Reuters , 2018)

1.4. VISION, MISSION & VALUES

1.4.1 Mission

To allow families and individuals an easy access to relevant world class fashion products for
every occasion of their life in an inspiring retail environment. The Benetton Groups mission
is to be known far and wide for their innovative work of knitwear. The organization is known
for its utilization of colours and surfaces to make something, one is pleased to possess. Their
imagination and advancement however in the meantime straight forwardness is the thing that
has kept them stay so solid in the game.

1.4.2 Vision

Benetton Group looks ahead with the young eyes of the future. Its story is built on innovation
and seeing where others fail to see. Always at the cutting edge - with colour, with its sales
outlet revolution, with an absolutely unique production and commercial network and with a
universal form of communication, creating both a phenomenon and cultural debate- Benetton
was global before globalization, but in its own way.

1.4.3 Values

Our values have been at the heart of a commitment to social responsibility that has evolved
over 50 years and that translates in the will to become agents of social change, by putting
people at the centre of all our activities and by cooperating with all interested stakeholders.
(Benetton Official site, 2019)

6
1.5 SWOT analysis
Strength
 They are known for good quality fabrics and designs.
 It is a worldwide known brand.
 They do a strong research and implement it in such a way which enhances the look of
product.
 Their clothes have international style that combines energy, colour and practicality.
 Branding and marketing campaigns have always generated to a lot of visibility.

Weakness
 According to advertisement ethics, some ads are controversial.
 Stiff competition means market share growth is limited.

Opportunities
 Young designers and well developed collections.
 Expansion of Online Retail.
 Exploring with new product segment.
Threats
 Target Customer can switch to other brand anytime.
 Growing Competition in the market. There are a huge amount of high end fashion
stores which are their competitors
 Increase in Labour Costs.
 Price wars with other brands in similar segments.

7
1.6 BENETTON GROUP

The United Colors of Benetton clothing collections for women, men and children offer a style
universally recognized as encompassing design, taste, a sense of beauty, which reflect the
Italian style of the brand.

Undercolors of Benetton propose collections of underwear, beachwear, nightwear and

accessories for women, men and children. A wide selection in basic colors is enhanced every
season with the latest trends.

1.7 BENETTON INDIA PRIVATE LTD. (BIPL), GURGAON

Figure 3: United Colours of Benetton Pvt. Ltd. Office, Gurgaon

United Colors of Benetton is one of the well-known fashion companies in the world today
and is present in 120 countries with about more than 6500 stores worldwide. Benetton
entered India in 1991-92 with a joint venture with the DCM group in Delhi and in 2004 it
became a wholly owned subsidiary unit in India. One of the success stories of Benetton is due
to the fact that it has understood the Indian market very well and it caters to a variety of age

8
groups by selling merchandise across its primary brand United Colors of Benetton, Innerwear
brand Under Colors of Benetton and kids wear. Today Benetton is one of the most successful
brands selling across India and it categorizes India as one of its most important markets
outside Europe. Globally the Indian market accounts for 8-10% of its global sales at the
moment. Benetton was among the few international brands to enter India and since then it has
been growing with retail sales accounting to more than 1000 Crore in fiscal year 2013.Today
UCB is a leading Brand in United Colours of Benetton India and it mainly sells its apparels
through franchisee, company owned stores, multi brand outlets and online portals. Benetton
has its own manufacturing unit in India where almost 50% of the garments for the Indian
stores are manufactured and the remaining manufacturing is done on a contractual basis from
Ludhiana, Delhi, Bangalore and Chennai. Benetton clearly enjoyed an early mover advantage
in India and has now started to penetrate into tier III and IV cities like Kota, Yamuna Nagar,
and Siliguri etc. to connect with the customers there. Benetton has been awarded for Best
Place to Work Award for Past 3 years. (Benetton Official site, 2019)

Figure 4: Front View of Benetton Office

1.8 BENETTON BUSINESS MODEL

Benetton India has divided their business model into several arms for precise and better
control over business. Majority of Benetton outlets are franchisee owned and some of them
are company operated. Its retail network in India expands over 50 cities selling its primary
brand United Colors of Benetton and others. Thereby due to emergence and growing
acceptance of other retail formats in India Benetton has started offering its merchandise via

9
multi brand outlets like Shoppers Stop, Lifestyle, Kapsons etc., e-commerce portals like
Jabong.com, Myntra.com, Amazon.com and company owned factory outlets.

United colours
of Benetton

Exclusive Multi Brand

Factory Outlet
Brand Outlet Outlet

School
Key Accounts E-Commerce Distribution
Business

Figure 5: Business Model of UCB

1) Key Accounts: Key accounts mainly include all large format departmental stores and
nationally known MBOs like Shoppers Stop, Lifestyle who generate substantial revenue for
the company.

2) Distribution: This channel mainly aims to include emerging markets in Tier II and Tier III
cities as to improve the brand’s penetration.

3) School Business: This channel covers selling of that merchandise which comes under
business like bags, water-bottles etc. for kids.

4) E-Commerce: It mainly includes selling of merchandise via online portals like

Amazon.com, Jabong.com, myntra.com, flipkart.com etc. This channel has seen a huge
growth in the last few years as more customers are now comfortable shopping over the
internet.

EBO Existing Doors- 241

Kids EBO Existing Doors- 168

10
1.9 FUNCTIONS OF VARIOUS DEPARTMENTS
1.9.1 SUPPLY CHAIN

Benetton works on three main verticals as they like to call it namely

 Purchasing
 Warehousing/Inventory management
 Distribution

1.9.2 Purchasing

The process starts from the purchasing department as they are responsible for the sourcing of
all kinds. They are responsible for the raw material sourcing for the merchandise as well as
for the office and administration commodities.

1.9.3 Warehousing

Warehousing or inventory management takes care of the storage facilities for the
merchandise after it is received from the vendors. Benetton has two ware houses at Sona
road, Gurgaon, Haryana and in Kapashera, Delhi and their warehousing and logistics partners
are Safexpress. They have vendors all over India from which the goods are received at the
ware house at Gurgaon as it is their main warehouse. The imports are also received at
Gurgaon warehouse. The Delhi warehouse is smaller as compared to the Gurgaon one as it is
used for the inward for the vendors based in Delhi only. Benetton also have their company
owned manufacturing unit in Gurgaon from which the inward happens in the Gurgaon
warehouse as well.

1.9.4 Distribution
Deliveries are done on the basis of season, the delivery dates decided, styles etc. The
merchandise is segregated according to the style into four categories namely A, B, C, D.
Suppose for winter collection the styles are to be allocated according to the nature of the
garment. So the A and B deliveries will contain the lighter styles may be full sleeves t-shirt
and cardigans which will have their delivery dates earlier in the season and as the season goes
on the delivery C and D will kick in containing the heavier styles like sweater and jackets.
The delivery dates have to decide according to the merchandise as it has to be known what
merchandise will sell at what time of the season.

11
1.9.5 Stock transfers
If a particular style is not selling in a specified area so in that case the stock is transferred
from one store to another where the style might be doing well.

1.9.6 Surplus stock

After EOSS (end of season sales) generally there is surplus stock left. Even after a season
there is some amount of surplus stock left. This stock in most cases has broken sizes and the
styles are also depending upon availability because this is the unplanned leftover stock. This
surplus stock is stored separately from the fresh styles and is even categorized differently.
The garments are segregated on the basis of category and then size as it may not have some
of the colors or sizes or even styles. So for this leftover stock Benetton have their own factory
outlets to which these are sent.

1.10 PRODUCT DEVELOPMENT

Product department is one of the main departments with which the buying department
functions.
The main range for Benetton stores is conceptualized and designed at the Italy head
office. Once the range is ready, the product & the buying teams from different corporate
offices around the world visit Italy for the selection of the designs.
The selection of the designs is based on the suitability of the designs to the Indian
customers and weather conditions.
After the selection of pieces is done, the color selection is made according to the themes
and the selected styles are then sent to the corporate offices around the world around 8
months in advance of the season.

1.10.1 Insertions
Since all the styles made in Italy are not meant for the Indian market due to some reason
or the other, the product development team along with the product head prepare their own
styles meant for India. These are known as INSERTIONS.

12
 Domestic Designs SS'20
Designs from Italy Kids
(50%) (50%) Range

Figure 6: Proportion of Range

 So when Italy is preparing its own range, the product team along with the product
head is developing the insertions simultaneously.

1.10.2 Pricing of Product

Once the range is complete, the buying and product team reach to a target MRP for all the
styles in the range. The range is arranged according to theme and category and one by one
each style is picked out and MRP is fixed upon.
The MRP is generally settled upon by multiplying the cost price by the multiplication factor
(MF).
MRP = Cost Price X MF
The MF may vary from one product category to another

1.11 SOURCING
 The sourcing department is responsible for costing of the range, sampling process,
getting the goods manufactured. Department has different parts namely, purchase,
sourcing, manufacturing, quality etc. After the range selection it is sent to the sourcing
department for costing.
 This department is divided into four parts – Flat knits, Fine knits, Women’s and
Accessories.
 It usually gets about 2-3 weeks for the costing of a range. The deadlines are
mentioned for each and every task in the company and are indicated in SAP, so that
any person of Benetton across the world can check.
 The sourcing department has to meet their deadline of costing so as to follow up the
process of setting the MRP‟s which is done by product and buying department. The
company has certain margin for each category and sub category which has to be
attained. If the costing is satisfactory to achieve that margin the MRPs are set,

13
 otherwise the product department sits with the sourcing department to discuss if any
changes can be made in the costing which include minor changes in the styling or
material used which does not hinder the original look or quality of the garment.
 After the costing is done the MRPs are set, the sampling takes place and the
department has around 60-90 days to start the production process of initial deliveries.
Following the production process the goods are taken in house.
 Benetton outsources almost 100% of their production from all over the country. For
different categories vendors are selected from different parts of the country e.g.
Majority of flat knits are sourced from Ludhiana.
 Generally, the range in winters is more in value as well volume from summers, so the
production timelines can vary accordingly.
 Few of the vendors which Benetton deals with are DRC Clothing, R.B. Knits, S. V.
Exports, Mehrasons, S.R.V. Knit tech, Winsome Knitwear.

14
 CHAPTER 2

BUYING DEPARTMENT

2.1 Base work planning:

The Benetton organization is working on the three parameters of the Data as such

Historic Forecast Marketing

Figure 7: Parameters of Buying

According to the data of the previous years and the forecast detail, the collections and the
styles for the season is decided and the 3rd parameter is marketing that works on the
competitive analysis of the other brands which are competing with Benetton. The pricing of
the range is set according to the market offering and the availability of options offered by the
competitors.

Buying and Merchandising team works mostly on the third parameter.

2.2 Company’s Buying Process:

The buying and merchandising department divides the year into three parts as

 Pre-Buying Period
During this Period all the analysis has been done which includes analysis of STR, top
selling colour, competition analysis.
 Buying Period
This includes showcasing of Range to franchisee partners at the Trade show.
 Post Buying Period
This period includes the closure of orders, placed by all the partners during Trade
show and Handing over these to the production team.

15
The Pre-Buying period involves the analysis of sales data to analyze the colors and the styles
that have worked in current season and identifying the top sellers and bottom sellers. With the
help of this analysis, the company moves into the buying period to select the range for the
next season. This data as well as the past few years’ data is analyzed together to figure out the
merchandise plan, which involves deciding what Price point the merchandise would be sold
at, in how much quantity would it be produced, and at what time during the season would it
hit the stores. The range is then showcased to the franchisee partners at a 6-day trade show
which forms the Buying process. After the partners have placed their orders, the company
moves into the Post Buying phase which involves the closing of the orders and the analysis of
current season’s sales to see the performance of the merchandise.

2.3 ROLE & RESPONSIBILITIES OF A BUYER

A buyer is typically responsible for selecting the merchandise from the wide variety of
options presented by design and product development team depending upon current trends,
customer requirements and past sales. The buyer has to select merchandise in such a manner
so as to satisfy the customer as well as maintain the positioning of the brand. The success of a
retailer is a lot dependent upon the buyer and his ability to select and place the right kind of
merchandise at the right place with right pricing. The role of a buyer may differ in various
organizations like for e.g. for an independent retailer, the buyer would be the owner of a
business or the manager of the retail outlet. However, for most of the retailers who are
company owned or work upon the franchisee model buying is treated as a very important
organ of the company. People possessing a wide variety of skills like analytical ability,
creativity, ability to work with teams, good negotiation and communications skills are usually
selectively chosen to work in this department.

2.4 FUNCTIONS OF BUYING DEPARTMENT

A retail buyer is responsible for planning and selecting a range of products to sell in retail
outlets. The buyer must consider the following factors when making purchasing decisions:
 Customer demand (e.g. price, quality and availability)

 Market trends

 Store policy

 Financial budget

16
Buyers source new merchandise and review existing ones to ensure products remain
competitive. By fully understanding customer needs, they are able to maximize profits and
provide a commercially viable range of merchandise at competitive prices. Keeping up to
date with market trends and reacting to changes in demand are key elements of the role.

Throughout the year, tasks performed by a buyer typically involve:

 Analyzing consumer buying patterns and predicting future trends.

 Regularly reviewing performance indicators, e.g. sales, sell through.
 Managing plans for stock levels.
 Reacting to changes in demand and logistics.
 Meeting suppliers and negotiating terms of contract.
 Coordinating with other departments within the organization to ensure projects are
completed.
 Attending trade fairs, in the UK and overseas, to select and assemble a new
collection of products.
 Participating in promotional activities.
 Writing reports and forecasting sales levels.
 Presenting new ranges to senior retail managers.
 Liaising with shop personnel to ensure product/collection supply meets demand.
 Seeking merchandise feedback from customers.
 Training and mentoring junior staff.
 Ensuring the products are delivered on time.
 Helping to interpret reports and predicting future sales.
 Stock control and Stock replenishments.
 Budgeting of the stores.
 Identifying the competition in the market and market gaps.
 Sales forecasting.
 Deciding the Markdowns and Reductions.
 Pricing of the Product

17
2.5 Theme wise Categorization Spring- Summer- 2020

SS'20 Kids
Collection

Boys Girls

Basico - 69% Moda - 31% Basico -74% Moda -26%

Figure 8: Range Classification of Spring Summer’20

2.6 Base Collection: For the 1st time Benetton Kids Wear department decided to divide the
spring and summer separate and the option offering and the styles will also be different, For
the capsule collections buying department decides to add on the summer season collection.

2.7 Spring Collection: The line/Range is Entirely Commercial and basico is the most
focused and contributing theme. According to the past 2 seasons sales the Basico/foundation
theme performance is high when it compared with Moda performances. The Summer for
UCB kids is the entire commercial and LFL styles filled line/range of collections. (Range
Book SS'20, 2019)

18
2.8 Buying Department Process Flow:

Product Development

MENS WOMENS KIDS

Initial range is selected by product and buying team in

Italy Collection meet

Buying team, Product team and Creative Head will

decide the final styles

Colour selection

Range is offered to production team for estimation of

cost and to check if the designs can be produced

Presentation of Costing Approved

Unapproved
MRPs are decided
Rework, Negotiation,
Changes in garment/
substitutions of Range is handover to the
fabric/ trims are production department for
samples development

Range is presented to franchisees and their orders are booked

Freezing purchase order and delivery plans are Finalized

Production starts Warehouse Movement Merchandise in store

NEW SEASON LAUNCH

Figure 9: Process of Buying Department

19
The buying at Benetton happens every 6 months before the season is launched. Following
are the steps involved in buying:

2.9 STEPS OF BUYING

Step 1: Option Plan: An option plan is made by the buying department that clearly defines
what numbers of styles and options are needed in a particular category and subcategory
within a price band. The product team then develops a range according to the option plan.

Step 2: Range Selection: The process starts with the product and buying team going to Italy
to select the initial range. This buying is based on the option plan prepared by considering the
budgets for major stores. The product team prepares theme wise collection and displays it to
the buying team in a meeting. After this meeting the buying and the product team works on
style and color selection. Buying team selects the styles on the basis of past sale records of
the similar styles and the salability. Then the second level of range selection is done in India
which includes styles and color selections from the samples brought from Italy. Also there
are insertions made at India level by the product team as per needs and demands of the Indian
target market which is not a very huge percent for ladies and kids. Majorly the insertions are
done in Men and Accessories.

Step 3: MRP

Once the range is selected it is sent to production for costing. After the costing is received the
MRP’s are finalized for individual style depending on the perceived value, the margins and
the category. The setting of the MRP is a crucial function as it affects the grading, the buying
decisions of the buyers and the franchisees and the sales eventually.

Step 4: Range Grading

The buying department takes over the control at this stage. Each style is graded as Core, Key,
A+, A, B and C. It is done on the basis of past performance of the category, the performance
of various styles, the buyers experience to analyze and predict if the styles would be accepted
by the buyers and will sell in the market.

 Core category includes all the basics offered by the company. They are offered in all
the stores and are available at low prices.
 A+ grade is given to the styles which are expected to get volume in the business and
would have the maximum number of styles and so on to the grades A, B and C.

20
  The KEY styles are high fashion garments which are bought in less volume as their
main function is to maintain the image of the brand. The KEY or must buy styles
represent the look of the season. These styles should be present at all major locations.

Step 5: Category Sheet

This is one of the most important steps in buying process whereby the category sheets for the
season are prepared by the buying team. This comprises of budget allocation on the basis of
gender, category and sub-category level for each store. Also the number of options and the
average depth of each option is being planned in order to meet the sales target. This requires
the study of past performance in terms of sales contribution, sell through rate and size wise
split up in each category. This helps the buyers to get an idea of the actual number of pieces
in each style with respect to each category have to be bought to achieve the target sale figure.
The Buying decision of the store is based on certain parameters which consist of the location,
Size and Target clientele of that store.

Step 6: Budgeting

In Benetton, the Finance department is responsible for allocation of funds and resources for
various tasks. The Buying team is only responsible for making the budgets for various stores
of Benetton either Company-owned or Franchisees.

THE BIGGER THE STORE, THE BIGGER IS THE BUDGET.

For the stores which have bigger space and are situated at prime locations, require wide
variety and deep assortment. Therefore, the budgets are higher.

Step 7: Franchisee Buying: Benetton comprises of stores that are owned by the company as
well as those that are given under franchisee contracts. In order to buy for the franchisees,
there is a trade show that happens for around 25 days where the individual franchisee comes
to place the order for the upcoming season. Buyers give a proper theme presentation to each
of the franchisees and introduce them to the range in order of grades allocated to each style.
The franchisees are presented each category, each style according to which they book each
style as per the budget suggested by the company buyer or their own budget, but the same has
to be agreed upon with the buying and commercial team. Before the buying for each store
starts, everyone is informed about the store capacity in terms of the options and the depth
appropriate for the respective store. Thereafter buying is done taking into consideration the
target market of the store. After the buying is done, the buyers go through the franchisee buy

21
to cross check whether the buy is appropriate or not. Necessary changes are suggested
wherever required.

Step 8: Range Books: After the approval of all the previous activities, range book is
prepared which shows all the necessary and important information required by the
partners before placing an order for the same.

Figure 10: Reference for Range Book

2.10 The SS’20 range selection had following themes:

Foundatio Basic
n theme o

Double Sports
dribble theme

Culture Zuri-
based situatio
theme n

Pirates Sustainable
of the
pacific theme

Figure 11: Themes of SS’20

22
2.11 Category Sheets: Category sheets are made for dividing the budget at store level and
further into gender categories.

Figure 12: Reference of Category Sheet

23
2.12 TRADESHOW FOR SPRING SUMMER 2020 HIGHLIGHTS

Figure 13: Range Display Area of Trade Show for SS’20

Stores are clustered on the basis of their Sales potential, location of the store, Budgets and its
past history.

 All the stores are categorized in 20 clusters.

 Core styles are suggested to be bought by every Franchisee as they are expected to
sell well after a long in depth study of performance of every style in various stores.
 The stores which have bigger budgets are suggested to buy styles from each grade.
 Some of the styles are Mandatory and the company can make an obligation to buy
such styles not less than 6 pieces for every store to meet the MOQs.
 The main purpose of Tradeshow is to showcase the Range to the Franchisee to buy
the merchandise for their stores. The Buying team gives suggestions and convinces
the various Franchisees to buy the styles in huge number that are expected to be a sure
shot.
 Suggestions can be given by various Franchisees in terms of alteration in Fabric or
colors or placement of logo or absence of Branding of Benetton on the merchandise.
In such cases, the changes are made by the Buying and Product team if it is feasible
and relevant.
 Individual Order sheets are given to every Franchisee based on their Budgets in which
they plug in the number of styles and within styles the number of options they would
like to buy for a store.
 Example of an Order Sheet for a store A of Franchisee F1

24
 Style no Description Page no. MRP Colors Qty Size ratios

 Buying Team suggests the smaller budget Franchisees about which styles they can
skip and which styles are must-have for their store.
 For flagship stores, they suggest them to buy key styles that can be a great fashion hit
in the coming time and convince them to take the risk for such styles.
 At the end of the day, Orders are reviewed by each Franchisees and finally submitted
to the Company.

2.13 BIPL buying: Once the Franchisee Buying is over, the buyer starts buying for the
company owned stores where they buy as per the category sheets prepared by them.The
parameters which are considered for options at stores are the location, target customer,
past performance, theme and trends for the season.

Order Uploading: This step comprises of compiling the orders of different franchisees
and thereby forwarding them to supply chain in order to get it uploaded in SAP (System
Application Products). Post that it is the responsibility of Production and Supply Chain
department to ensure that everything is producing as per the orders.

2.14 Evaluation of performance

 After the collection hits the stores all over the country, the main function of buying
department is to evaluate the performance of each category as well as style. Daily
sales reports are received by the head office that helps to analyze the sales and
percentage of target achieved.
 Buying team must keep a check on the styles that are fast movers, average performers
and slow movers.
 They have to coordinate with the Sales team to understand the reasons for the slow
movers and making the rectifications if possible.

25
2.15 Stock replenishments and stock shuffling

 On the basis of daily sales report, a buyer should be updated with the movement of
the stock. For the stores that are doing a good business, stock outs should not happen
because it can lead to loss of business.
 Stock should be replenished on regular basis. In case, one particular style which is not
moving at a particular location must be immediately reshuffled to another store
location in which it has better potential to move.
 Coordination with various company-owned stores as well as franchisees is important.

2.16 Store visits

 Buyer has to visit the Benetton stores.

 He/She has to deeply study the buying behavior of customers visiting the stores.
 He/She has to interact with the Sales team and the store Managers to know pros and
cons of the collection.
 They also have to motivate the Sales team and share necessary information while
dealing with customers.
 The display and visual merchandising are also few aspects that a buyer needs to see in
the store.

2.17 Sell through analysis

 It determines how much quantity has been sold against the quantity received by the
retailer expressed in percentage.
 Sell through reports are made on weekly basis to keep a check on the performance for
various styles.
 It helps a buyer to understand how much percentage of categories should be carried in
the future.
 In the current year, sell through rate for Denims in Women’s wear has gone down.
Here the buying team will try to find out the reasons for the same.

2.18 Competitor mapping

A Brand should always review its position in the market against its competitors. A buyer has
to be aware of the trends, the themes, the price lines and the promotional activities followed

26
by the other brands. With the growing competition, Benetton believes in maintaining the
quality of the products it sells.

2.18.1 CHALLENGES OF BUYING DEPARTMENT

1. Achievement of sell-through: The main target for the Buying team is to achieve the sell
through percentage for the Gender category as well as the Subcategory. The styles should be
moving and poor performing styles must be eliminated from the collection in future. Return
on Investments should be higher. Sell through percentage should be improved.

2. Franchisee management: It is another big challenge for the department. Every

Franchisee behaves differently. They have to convince them during the selection of styles to
buy those styles which they believe will bring a good business to the company. They have to
suggest the Franchisees about the key styles that they must buy and keep in consideration the
Budgets for different franchisees.

The Buying department is responsible to keep a track on three tasks going on simultaneously:

 The performance of the Current Season collection already on the floor.

 The production of the Next season about to launch in stores.
 The SIX MONTH merchandise planning for the coming season.

3. Competitive and quick: The buying department has to continuously meet the deadlines.
They have to keenly observe the latest trends and capture them to put them in their flash
collection. They have to add newness to the collection. They need to be very quick in
competitor mapping and keep a pace with them. The Range selection has to be done very
carefully by the use of experience about what kind of styles will sell in the market and what
styles will not be accepted.

4. Stock replenishment and stock shuffling: At the time of stock allocation before the
collection is launched in the stores, only 60-70% of the pre-determined budget is utilized as
the initial allocation. The remaining 30-40% of the budget is allocated as per the performance
of the merchandise categories in the stores. This allocation of replenishments has to be done
carefully keeping in mind the remaining stocks at the warehouse and ensuring that the Sell
Through Reports are studied properly.

5. Store handling: There are more than 340 stores all over India and it is not easy to handle
them by a team of 10 people. Store visits to every region are not possible on frequent basis

27
and hence on the basis of daily sales report, the buying team has to analyze the situation of
store virtually. The buying team works in coordination with Zonal Managers to bridge the
gap between Benetton stores and head office.

28
2.18.2 PRODUCT LINE KIDS WEAR

Kids wear
Boys Knit top
Knit bottom
Denim
Woven top
Woven bottom
Jackets
Accessories footwear

Girls Knit top

Knit bottom

Denim

Dungrees/Dresses

Woven bottom

Accessories footwear

29
 CHAPTER 3

COMPETITOR ANALYSIS

3.1 LITERATURE REVIEW

Introduction to Kids wear Industry in India

India is the second largest producer of textiles and garments in the world. The Indian textiles
and apparel industry is expected to grow to a size of US$ 223 billion by 2021, according to a
report by Technopak Advisors. This industry accounts for almost 24% of the world’s spindle
capacity and 8% of global rotor capacity. Abundant availability of raw materials such as
cotton, wool, silk and jute as well as skilled workforce have made the country a sourcing hub.
Scanning through the streets of any town or city, one can see a mind boggling array of kids‟
apparels. Spaghetti tops, Crystal studded denims, Italian cuts, Dungarees, Capris, and
exclusive party wears. Kids fashion is a diminutive version of adult’s wear. They have all the
clothing as like that of adults, and even much more. Children of today are much more
intelligent than their previous generation. They like to have their own choice of clothing. This
metamorphosis of children; becoming independent buyers is enhancing the kids wear market.
Double income, increase in the amount of disposable income, and one or two kids are the
supporting factors to the growth of the kids wear market. Global kids wear market during
2006 was estimated to be around US$ 163.92 billion, which was a small contribution of 3.6%
of the total clothing industry. Kid swear segment of the Asia-Pacific region is 35.1% of the
global market, and is considered by industry analysts as one of the fastest growing segment,
due to increase in child population, supported by many other factors.

3.2 General overview:

The Global Children's and Infant Wear Market is forecasted to grow at a CAGR of 5.94%
during the period 2019-2023.

The overview of literature shows that for the kids-wear apparel market the brand name,
competitors, product design, and colors are the major factor in deciding the new trends and
designing the new range for the company.

Also the trend forecasting plays an important role in the fashion industry as it helps the
design teams for the organizations to be up-to-date with the latest fashion and design the
range accordingly

30
3.3 Children Apparel market:

Growing preference for branded children’s apparel and increasing spending on kid’s apparels
and footwear is driving the demand of children wear market across the globe. In developing
economies, growing influence of foreign culture and the emergence of kids as an independent
buyer group is likely to boost the demand of children’s apparel in upcoming years. Popular
children apparel brands are coming up with new collections that will appeal to kids. For
instance, Gini & Jony have come up with a collection of brightly colored apparel. Their
collection includes clothes in hues such as orange, lilac, pink, plum, and citrus green. This
factor is expected to support the market growth during the forecast period. Additionally,
certain children apparel brands like Weekender have agreement with Walt Disney and
Warner Bros., where the apparel brand can use of some of their famous cartoon characters in
their apparel line. The brand is further planning launch apparels with characters like Mickey
and Minnie Mouse as well as Tom and Jerry in the children's apparel line in upcoming years.

3.4 Indian Kids wear Market:

Indians are increasingly spending more than they ever have on clothes for children.
Increasing access, double-income households, brand consciousness and affordability have
nudged out hand-me-downs and cheaper export-reject options. The indulgence isn’t limited to
birthdays and special occasions, either.

In 2015, the retail value of the kids’ apparel market in India was pegged at Rs. 79,000 crore,
according to industry estimates. ―A large portion of the demand has been driven by Indian
consumers shifting to the organized market,‖

The market for Kids wear is expected to register a retail value compound annual growth rate
of 15% to reach sales of Rs.1.6 trillion by 2020.

The fact that India is one of the youngest nations in the world—29% of its 1.2 billion
population is under 14 years, according to the World Bank—makes it an attractive market for
brands. Market for kids‟ apparel is the fastest growing industry in India. Manufacturers are
coming up with fancy materials targeting kids who are more interested in the upcoming
fashion trends. Children garments are available in various forms and designs. Kids‟ apparel
market is more unorganized than any other segment of apparels. The market is a proposition
of the good, bad and the ugly. A huge volume of kids apparel in India is being dominated by
local and unorganized players. This gives an excellent opportunity for the organized players

31
to lay a strong foundation in this segment. Indian market is now moving towards an
International look in terms of children apparel. Cotton plays a major role in the clothing of
children. Approximately, 86% of the kid’s wear are of cotton. Branded kids apparel market is
in its nascent stage in India with a handful of national and international brands. Industry
analyst estimate that market size of branded kids wears in India including brands like Ruff
Kids, Ruff Baby, Planet Kids, Gini & Jony, ZAPP, Lil Tomatoes, and Weekender Kids is
estimated to be around Rs 1,000 crore. They positively assert that branded market for kids is
growing at 15% per annum. International brands including Barbie, Mothercare, Benetton
Kids, Pepe, Lee Kids, Tommy Hilfiger, and Adams Kids have also entered the Indian market.
(Mordor Intelligence, 2019)

3.5 Characteristics of Kids wear Markets:

The market for Kids wear is classified as follows:

 Infants (0 - 6 months)
 Toddlers (7 months - 2 years)
 Kids (3 - 8 Years)
 Pre-teens (9 - 12 Years)

3.6 KIDS WEAR VS. THE COMPETITORS AND TOP PERFORMING COLOURS

3.6.1 Statement of the problem

 Benetton although a widely recognized and preferred brand in the market today, is
losing out to its competitors such as Zara, H&M, GAP, Mothercare, Tommy Hilfiger,
US Polo & Lee Cooper due to the lack of options and inability to capture season
trends in their range.
 Benetton has always aimed at focusing on its target customer group of youth who
look for trend and comfort at the same time. Due to the entry of foreign players such
as H&M and GAP into the Indian retail market, the brand is facing threats in terms of
retaining its current market share both in the brick and mortar format as well as the e-
commerce platform.
 The intensity of competition also puts a price pressure onto the operating companies
in the industry or could lead to a loss in market share.

32
 3.7 Brands Taken for Competitor Analysis:

Figure 14: Competitor Brands

The Competitive Mapping done by the price point level and option offerings.

Tools: The secondary source included the online research of what the brands are offering
online and at what price.

1. Primary Research Market Scan: This involves studying the offerings of the competitor
brands. An observation matrix would be prepared which would include the information on
brands offering in terms of options and price points. The data was collected through store
visits of competitor brands.

The different trends offered by brand were made a note of along with their price points and
number of options available. This was done for the brands like Zara, H&M, GAP,
Mothercare, Tommy Hilfiger and US Polo. In the following study certain points are to be
noted:

 The study has been conducted by determining the number of options kept on shelf (in
a store) by a particular brand.
 Options refer to the number of color ways in a particular style. For example, in a
particular style of Denim is offered in a store in 4 colors then the number of options
are taken to be 4.

33
2. Secondary Research Desk research: The aim was to analyze the competitors of
Benetton on Shoppers Stop and Jabong, Myntra (for the brands like US Polo kids and
Tommy Hilfiger kids) and online websites of different brands (which included Zara, H&M
and mother care) and study the merchandise, price range, trends and options offered by these
brands.

3.8 The Competitive mapping for girls and Colour Analysis- Knit Tops:

Entry-Price Point
Benetton offering 39
GAP offering 9
Zara offering 78
Mother care 10
H&M offering 57
US.Polo kids 9
Tommy Kids 14

The No of offering is high in the Brand ZARA, followed by HM and Benetton.

Mid-Price Point
Benetton offering 45
GAP offering 14
Zara offering 10
Mother care 15
H&M offering 35
US.polo kids 2
Tommy Kids 11

In the Mid- Price Point UCB is the Leading brand to Offer more no of options and Followed
by the H&M

Exit Price Point

Benetton offering 37
GAP offering 2
Zara offering 29
Mother care 2
H&M offering 14
US.polo kids 2
Tommy Kids 1

34
Option Offering Were High in the UCB and followed by the H&M

Reference Slide Picture:

Figure 15: Reference Slide for Competition Mapping

Findings:

 SS’19- Benetton offered 39 options of knit tops, Since the leading competitors like
Zara, H&M 78,57 respectively.
 SS’20- Benetton offers 39 options at the entry price point and the styles are
commercial with no sleeve variations.
 The No of Style Variations is also less when compared to H&M, Gap.

35
COL ORDER NET SOLD SALES TOP/BOTTOM
NAME OPS QTY RECD QTY CONTRIBUTION STR COLOUR
3- TOP
Blue 19 18360 17161 6319 14% 37% COLOUR
Fuchsia 8- TOP
Pink 1 1565 1654 823 2% 50% COLOUR
4- TOP
Green 9 8025 8041 3528 8% 44% COLOUR
10- TOP
Grey 2 2325 2255 1106 3% 49% COLOUR
2-BOTTOM
Multi 1 448 463 174 1% 38% COLOUR
7- TOP
Navy 3 3805 3704 1507 4% 41% COLOUR
9- TOP
Orange 7 5797 5248 1901 4% 36% COLOUR
2- TOP
Pink 19 25252 23997 10254 23% 43% COLOUR
1-BOTTOM
Purple 8 6609 5823 1268 3% 22% COLOUR
6- TOP
Red 7 8040 7727 2603 5% 34% COLOUR
1 -TOP
White 23 24558 23523 11095 25% 47% COLOUR
5-TOP
Yellow 9 10413 10280 4652 10% 45% COLOUR

According to the Sales contribution and the Ideal STR (41%) of the Knit top category the top
Performing 3- colours are white, pink, blue followed by Green, Yellow, Red. The option
count in purple and multi-colour are one each in SS’20 since it is the bottom selling colours
in girls Knit category.

36
3.9 The Competitive mapping for girls- Woven Tops

Girls 18 LFL Growth rate

70%
60% 56%

50%
40%
30%
20%
6% 7%
10% 4% 4%
0%
-10%
-20%
-30% -25%

Figure 16: Graph Depicting growth rate of all categories in girls

 Primary Source Data: The Previous year(SS’19) LFL Rate- De growth- 25%
 SS’20 the Woven tops are dropped for the girl’s category.

3.10 The Competitive mapping for girls- Party wear trousers and Denim trousers:

GIRLS DENIMS
DENIMS DENIMS DENIMS
32
27
24

10

8
8

7
5

5
5
4
3
3
2

1
1

BENETTON GAP ZARA MOTHER CARE H&M U.S. POLO TOMMY

Figure 17: Depicting Denims Option count in different Price points

37
In terms of option offering in the denims category, Benetton always goes for the LFL styles
and higher STR styles

Net Received Net Sold Qty

DENIM 31777 12779

Overall Net Receive and no of net Sold Quantity of girls Denims

NET SOL SALES

COL ORDE REC D CONTRIBUTIO TOP/BOTTO
NAME OPS R QTY D QTY N STR M COLOUR
Dark 1 -TOP
Wash 3 2907 2771 1197 24% 43% COLOUR
Medium 3- TOP
Wash 4 3028 2899 1092 21% 38% COLOUR
4- TOP
Grey 0 1676 1581 603 12% 38% COLOUR
Light 2- TOP
Wash 1 1068 1084 566 10% 52% COLOUR
5-TOP
Black 1 1478 1436 593 9% 41% COLOUR
6- TOP
Blue 1 1486 1402 536 8% 38% COLOUR
7- TOP
Pink 1 860 846 363 7% 43% COLOUR
8- TOP
White 1 986 905 368 6% 41% COLOUR
BOTTOM
Green 1 416 400 154 3% 39% COLOUR

The Ideal STR for Girls Denims – 46%, In the colour Analysis the Top-3 Performed colours
are given more no of option preference in SS’20.

38
 3.11 The Competitive mapping for girls- Knit bottoms:

KNIT BOTTOM
KNIT BOTTOMS KNIT BOTTOMS KNIT BOTTOMS KNIT BOTTOMS

32
24

21
13
11

9
8

6
5

5
4
3

3
2

2
1

1
1

1
BENETTON GAP ZARA MOTHER H&M U.S. POLO TOMMY
CARE

Figure 18: Depicting option counts in knit bottoms

In terms of option offering Benetton don’t have many options in knit bottoms as compared to
H&M, GAP and Zara, Because of the sale value and Quantity is not enough profitable at
SS’18.

Net Received Net Sold Qty

KNIT BOTTOM 47867 19409

ORDER NET SOLD SALES TOP/BOTTOM

COL NAME OPS QTY RECD QTY CONTRIBUTION STR COLOUR
1 -TOP
Blue 6 7899 7632 3217 34% 42% COLOUR
2- TOP
White 2 3347 3371 1697 17% 50% COLOUR
3- TOP
Grey 2 1840 1758 863 13% 49% COLOUR
4- TOP
Navy 1 2265 2203 959 12% 44% COLOUR
Pink 3 4029 3850 1379 11% 36% 5-TOP COLOUR
6- TOP
Green 2 1870 1768 665 6% 38% COLOUR
2-BOTTOM
Red 1 2027 1979 705 5% 36% COLOUR
1-BOTTOM
Silver 1 437 407 95 1% 23% COLOUR
Multi 3 320 0 0 0% 0%

39
Ideal STR of the Category is 42%

The Top- 2 performing colours are Blue and white and followed grey, navy Since the SS’20
knit bottoms has 20 options

3.12 The Competitive mapping for girls- Woven bottoms:

Shorts, Trousers, Skirts category

WO VE N B O T TO MS
Shorts Shorts Skirts Skirts Trousers Trousers
9

8
7

7
7

6
5
5

5
4

4
4
3

3
3
2

2
2
2

2
1

1
1

1
1
1

BENETTON GAP ZARA MOTHER H&M U.S. POLO TOMMY

CARE

Figure 19: Depicting option count in woven bottoms for all the Brands

Net
Received Net Sold Qty
WOVEN
BOTTOM 39583 17582

Benetton girls woven bottom don’t have options counts for the SS’19, For the SS’20 they
have 57 options of woven bottom category (Excluding woven dresses)

40
MATERIAL COL ORDER NET SOLD SALES TOP/BOTTOM
GROUP NAME OPS QUANTITY RECD QTY CONTRIBUTION STR COLOUR
1 -TOP
Girls-Shorts Blue 3 3404 3355 1808 37% 54% COLOUR
BOTTOM
Girls-Shorts Green 1 729 708 287 5% 41% COLOUR
2- TOP
Girls-Shorts Pink 2 2767 2749 1212 21% 44% COLOUR
4- TOP
Girls-Shorts White 2 2376 2228 747 16% 34% COLOUR
3- TOP
Girls-Shorts Yellow 3 2781 2786 1154 21% 41% COLOUR
Girls-Shorts
Total 11 12057 11826 5208 100% 44%

MATERIAL COL ORDER NET SOLD SALES TOP/BOTTOM

GROUP NAME OPS QUANTITY RECD QTY CONTRIBUTION STR COLOUR
1 -TOP
Girls-Skirts Blue 2 1375 1392 657 54% 47% COLOUR
2-BOTTOM
Girls-Skirts Green 1 345 314 101 9% 32% COLOUR
1-BOTTOM
Girls-Skirts Purple 1 222 205 48 4% 23% COLOUR
2- TOP
Girls-Skirts White 1 1017 969 407 33% 42% COLOUR
Girls-Skirts
Total 5 2959 2880 1213 100% 42%

MATERIAL COL ORDER NET SOLD SALES TOP/BOTTOM

GROUP NAME OPS QUANTITY RECD QTY CONTRIBUTION STR COLOUR
Girls- 1 -TOP
Trousers Blue 1 1504 1469 968 34% 66% COLOUR
Girls- 3- TOP
Trousers Multi 1 901 906 692 18% 76% COLOUR
Girls- 2- TOP
Trousers Purple 2 1710 1623 805 25% 50% COLOUR
Girls- 4- TOP
Trousers White 1 1349 1335 596 15% 45% COLOUR
Girls- BOTTOM
Trousers Yellow 1 616 625 245 8% 39% COLOUR
Girls-
Trousers
Total 6 6080 5958 3306 100% 55%

41
 3.13 The Competitive mapping for girls- Dresses:

DRE S S E S
Dresses Dresses Dresses

23
19
17

17
17
15

15

15
8
5

5
3

3
2
1

1
BENETTON GAP ZARA MOTHER H&M U.S. POLO TOMMY
CARE

Figure 20: Depicting Option Count in Dresses

Dresses Category of Benetton has very less no of options

TOP/BOTTOM
MATERIAL COL ORDER NET SOLD SALES COLOUR
GROUP NAME OPS QUANTITY RECD QTY CONTRIBUTION STR
Girls-Dress Black 1 524 497 229 2% 46% 7- TOP COLOUR
Girls-Dress Blue 9 11326 11090 5426 37% 49% 1 -TOP COLOUR
BOTTOM
Girls-Dress Multi 1 294 280 107 1% 38% COLOUR
Girls-Dress Pink 9 9375 8856 4096 32% 46% 2- TOP COLOUR
Girls-Dress Purple 3 1509 1550 759 6% 49% 5-TOP COLOUR
Girls-Dress White 4 4185 4067 1310 10% 32% 3- TOP COLOUR
Girls-Dress White 1 1372 1346 759 7% 56% 4- TOP COLOUR
Girls-Dress Yellow 2 1877 1869 939 5% 50% 6- TOP COLOUR
Girls-Dress
Total 30 30462 29555 13625 100% 46%

The Top sold colours are blue followed by pink followed by white. In SS’20- 9 Pink Dresses
& 12 Blue Dresses followed by 4 White party wear.

42
 3.14 The Competitive mapping for girls- Dungarees, Jumpsuits:

DUNGARE E S / JUMPS UIT

Benetton GAP ZARA Mother Care H&M U.S. Polo Tommy

4
3
3

3
2

2
1

1
1

1
1
1

1
1
EPP MPP EXPP EPP MPP EXPP
JUM PSUITS DUNGAREES

Figure 21: Depicting Option count in Dungarees/Jumpsuits

The Jumpsuits and Dungarees are the minimum no of option offering in the market in that
UCB offering and sales are good in the contribution for the category.

COL ORDER NET SOLD SALES TOP/BOTTOM

NAME OPS QTY RECD QTY CONTRIBUTION STR COLOUR
Green 2 1086 1040 333 23% 32% 3- TOP COLOUR
Pink 1 566 563 310 22% 55% 2- TOP COLOUR
Yellow 1 1575 1502 778 55% 52% 1 -TOP COLOUR
4 3227 3105 1421 100% 46%

LIMITATIONS:

This study has attempted to divulge into some of the important issues. However, it is
admitted that there are some limitations in the conduct of this study which are as follows:

1. The geographic scope was limited to the city of New Delhi, so the results are very
specific to the particular region. The trends and characters exhibited by the research
may not represent the general trend.
2. The possibility of errors being introduced into the data by ignorance or selective
perception calls for cautious interpretations.
3. Most of the data represented in the study was collected manually and thus is subjected
to errors.

43
4. Data collected through online websites of brands and Jabong, Myntra and Nnnow is
subjected to change because of addition and subtraction of merchandise due to stock
replenishment or stock-out.

44
 CHAPTER 4
LEARNING
Internship at United Colors of Benetton have been a great learning experience as it gave me
hands on exposure of working in an organizational set-up. Interning at the Buying
Department provided me with the know-how and functioning of the department. I gained
knowledge of how buying at UCB happens thus helping me in co-relating the classroom
learning with the practical functioning of the buying department. This internship taught me
a number of other things like organizational behavior, time management and conducting
oneself at an organization. While interning with UCB I got an opportunity to gain
knowledge about the following:
 Buying process flow at UCB as I was a part of SS’20 buying.
 Presenting the SS’20 range to the franchisers.
 Various problems faced by the Buyer in the buying process and methods to overcome
them.
 How in-store competition mapping is done as I was given the task of Competition
mapping for Delhi/Gurgaon location and online websites like Ajio, Nnnow, myntra,
Jabong.
 Got an insight about how the sales staff is educated to increase the sales.
 Sell through analysis report and analyzing which styles are moving and which are not
(Especially with colour).
 Various tasks performed by the buyer apart from the core buying activity.

4.1 Findings from Knit Tops Category:

1. In the entry price point (399-599) UCB is offering tees with text/minimal graphic
prints while other brands like Zara and H&M has also incorporated embroidery and
glitter prints in their styles along with hem variations as high low hems. While brands
like tommy, gap, mother care and US polo remain basic with minimal graphic print
and text prints.

2. UCB offers variety of styles and options including embroidery, AOPs, bead appliques
in its Mid-price point i.e. 799, while other brands like Zara and H&M keep their
options limited with more experimental styles by using reversible sequins, use of lace
and other appliques. Even brands like gap, us polo, mother care and tommy have used

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 the reversible sequin techniques along with the usage of other appliques, embroidery
and motifs like pom-pom and more.

3. UCB is offering front knotted tees in its 799 range which can be also seen in Zara’s
Mid-price point range i.e. 890, while US polo is offering the same at a price point of
899.

4. In UCB’s exit price point i.e. 999-1399, its offering more experimental styles like
cold shoulder tees with sequins. It also includes all over embroidery, frill on sleeves,
lace tank top, different kinds of appliques like laser cut outs, while GAP remains basic
with chest text print, Zara and tommy with reversible sequins, H&M with sports tee
and other design variations using pearl motifs, US polo with polo tops in different
styles and mother care with embroidery and sequins. (Zara official site, 2019) (H&M
official website, 2019) (Nnnow website, 2019)

4.2 Findings from Dresses Category:

1. For the entry price band, Zara and H&M are offering reversible sequin dresses and
UCB is offering Sequin applique and pleated dresses.

2. UCB is offering tulle dresses but other brands are offering sequins with tiered tulle
dresses in the mid-price band.

3. All over embroidered dresses are offered by Zara and H&M but other brands are
offering schiffli dresses which UCB is also offering.

Suggestion- UCB can offer schiffli fabric options with some of the techniques like
smoking, crochet and embellishments

4.3 Findings from Trousers/Woven bottom Category:

1. Glitter print trousers are available in H&M as well as GAP in their party wear
collection, UCB is offering metallic stud embellished trousers which is similar but
prints are more acceptable.

2. Zara is also offering schiffli and Corduroy fabrics in trousers and H&M is offering
reversible sequin patches in bottom wear as well.

Suggestion- UCB can offer different applique and embellishments in the trousers.
(H&M official website, 2019) (Zara official site, 2019)

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 CHAPTER 5
CONCLUSION

The fashion retail market has been growing at an astronomical pace in India, especially in the
recent few years. An attempt has been made to thoroughly understand the way in which the
company takes up the Buying function in order to meet the customer demands. A study of the
buying process at Benetton was done preceded by a study of the competitors through field
study-visits to the Malls and markets in Delhi and Gurgaon as well as by studying the past
three years’ sales data of the Spring Summer Season. This gave an insight into where
Benetton stands compared to its competitors and what can be done to further improve their
position in the minds of prospective customers and the Indian market.

As it can be seen from the project that the most important factors affecting the apparel
purchase are colour, style & design and fabric, right type of strategies can help improving the
same. Specifically, for Kids wear category the most important factor is comfort and ease of
the garment. It is important to focus on all the parameters considering product, pricing and
improving awareness to survive in this competitive market. From the report and Competitor
and Colour analysis it can be seen that there is requirement of increase in the better Styles
and Colours and more styles in some of the sub-categories to become a market leader. The
aim of the project is not to change the positioning of the brand but to understand the
competitor’s offerings and expectations across kids wear category. This project also aimed at
understanding the past sales data to develop an extensive merchandise assortment plan for the
next Summer Season option offerings. This would take a few seasons as initial effort is to
increase the awareness for the new try of sustainable concept in pirates of pacific, then the
brand can gear upon the sales by increasing options, introducing new concepts, etc. They
have to do some positive experiments in terms of product and promotions and options
offerings in consumer preferring colour(most of the customer) the state or a right move to go
for the new experimentation in kids range/line.

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 CHAPTER 6

Bibliography

Reuters . (2018, October 23). Retrieved August 12, 2019, from Reuters.com:
https://www.reuters.com/article/us-italy-benetton/benetton-founder-who-took-family-
business-beyond-sweaters-dies-at-77
Benetton Official site. (2019, August 02). Retrieved August 14, 2019, from
benettongroup.com: http://www.benettongroup.com/work-with-us/group-overview/
H&M official website. (2019, july 02). Retrieved july 14, 2019, from www2.hm.com:
https://www2.hm.com/en_in/kids.html
Mordor Intelligence. (2019, August 09). Retrieved August 12, 2019, from
Mordorintelligence.com: https://www.mordorintelligence.com/industry-
reports/childrenswear-market
Nnnow website. (2019, July 04). Retrieved July 10, 2019, from Nnnow.com:
https://www.nnnow.com/
Range Book SS'20. (2019, July 24). Benetton India. Gurgaon, Haryana, India: Benetton.
Zara official site. (2019, July 08). Retrieved July 12, 2019, from Zara.com/in:
https://www.zara.com/in/en/kids-l1.html

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 ANNEXURES

Annexure - 1

Buying team hierarchy:

Mrs. Harita Kaul

(Head of buying department)

Ms. Ashima puri Ms.Sakshi Mahajan Ms. Shipra katan Mr. Varun Sharma
(Sr. Manager Kids (Sr. Manager Men’s (Sr. Manager Womens (Sr. Manager Retail
wear) wear) wear) Planning)

Ms.Parul Nagpal Mr.Pranav kotagri Ms.Avantika Gupta

(Deputy Manager (Deputy Manager
(Deputy Manager Womens wear)
Kids wear) Men's wear)
Figure 22: Management Hierarchy Of Buying Department

Annexure - 2

Buying Department – Benetton India

Benetton
(364 PAN
India)

Company- Franchiesees
owned (21) (343)

Flagship Non Flagship Master

Total Stores
Stores Stores Franchiesees

Figure 23: Store Classification of Benetton

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Annexure 3:

Organizational Structure:

Buying( Ms. Haritha Kaul)

Marketing

VM

Commercial Head MBO's

HR Head (Mr.Vivek
Business Development
Mukherjee)

IT Head (Mr.Arjun) Sales operations

Production Head Retail

(Sundeep Chug)
CEO

Institutional Business Head

Finance

Product Head

Supply Chain

Internal Audit

Figure 24: Organizational Hierarchy of Benetton

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