Benetton's 'Dual Supply Chain' System
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Case Details:
Case Code : OPER065
Case Length : 19 Pages
Period : 1998-2006
Organization : Benetton SpA
Pub Date : 2008
Teaching Note :Not Available Countries : Italy
Industry : Apparel Retailing
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Benetton Moves to Fast Fashion Contd...
Apart from Benetton's regular twice-yearly new collections, Benetton began to
bring in several new collections at different times of the year to meet the
changing fashion trends. The time required to restock the stores was reduced and
new collections were brought in every four weeks. Commenting on the importance
of an efficient supply chain management for Benetton, The Wall Street Journal
wrote, "Replenishing its racks with new clothes as often as once a week is
helping the Benetton brand get its groove back after years in the retail
doldrums. Its success underscores how logistics can be as important as style in
the increasingly cutthroat business of mass-market apparel."
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Background Note
At the end of the Second World War, in Ponzano Veneto, a small town 30
kilometers north of Venice, Italy, Luciano Benetton (Luciano) left school,
after the death of his father, to work in a clothing store.
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Soon, he started a small business with his brothers Carlo and Gilberto, and
sister Giuliani, and started producing sweaters, in several bright colors.
The bright sweaters immediately attracted the attention of consumers, who
were bored of outfits in plain colors.
Initially, he sold these sweaters
door-to-door. In 1956, the Benettons launched their own line of sweaters
under the label Trés Jolie.
They started Benetton Group as a partnership in
March 1965. In the same year, they opened their first store called 'My
Market' which sold several collections including the newly introduced
Benetton label... |
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