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Benetton embarks on three-year brand restructure

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By Stephen Lepitak, -

November 29, 2013 | 2 min read

Benetton Group has revealed plans for a three-year programme to restructure its brands.

The fashion wear company's board of directors have approved the programme, which will aim to make its brands become more competitive within the fraught clothing sector.

Three entities will be created as a result; one focusing on the brands, such as United Colors of Benetton and Sisley, another on manufacturing and another on real estate management, which will be controlled by the holding company Edizione.

The company plans that the resulting structure will allow its brands to "respond to increased effectiveness".

The two main Benetton Group brands will operate within different market sectors, while the company also plans to invest in directly owned key and flagship stores, while also developing new retail concepts. It will also concentrate on developing a strong geographic focus in which it can target key markets.

Alessandro Benetton, chairman of Benetton Group, said: "From the outset, we laid out a strategy for rethinking our business based on discontinuity and renewal, of course without forgetting our rich history.

"Today we see certain early signs that the strategy is starting paying off, even if we are still only at the beginning of the journey and the market environment remains uncertain. Our efforts are focused on recovering profitability by simplifying the business model and focusing on our brands.”

The restructure comes after the business relaunch in 2012, when Luciano Benetton handed over control of the company to his son Alessandro.

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