Benetton's Diversifications

In 1969, the Benettons opened their first boutique in Paris. The shop in Paris also did very well with its popular styles, availability of a wide range of colors and affordable prices. Following the success of the Benetton outlets, the Benetton family bought the Villa Minelli⁴ in 1969, which became the company's head-office in the mid-1980s. In 1972, Benetton engaged Eldorado, a publicity agency in Paris, to boost its popularity further. In 1974, Benetton bought the exclusive rights to use the name of a popular brand 'Sisley', a French clothing brand which had been launched in Paris in 1968. However, Benetton set up the brand as an exclusive line with its own team of creative and sales staff only in 1985. Sisley was aimed at the more fashion-conscious and trendy segments.

To manage the increased number of clothing labels it had introduced as well as its overseas operations the Benetton family set up Benetton International Holding headquartered in Luxembourg, in 1985. By this time, Benetton had different labels for various age groups, all of which were sold under the brand, United Colors of Benetton. The labels were '0-12' with pullovers, trousers and shirts for children; 'Merceria' with pullovers, and shirts mainly for women; 'My Market' with pullovers and shirts, 'Benetton' with pullovers, trousers and shirts, and 'Tomato' with pullovers, trousers and shirts for juniors. In 1985, they bought the Toleman's Formula One team. The Benetton family took an important step forward for the company when they took it public in 1986...