The areas of greatest growth in 2005 were eastern Europe, the Mediterranean - Spain, Greece, and Turkey - and Korea. In Turkey, a joint venture has also been established with the Boyner Group in order to develop production and sales in the country and certain surrounding areas.
Retail distribution, which, as of this year, is being centrally coordinated in Italy, numbered almost 300 shops in the leading international fashion capitals and posted encouraging
economic results.
The evolution of the interior design elements of shops continued in 2005 with the new
Sisley concept, known as Pentagram, which is a better fit for the glam image and for brand
positioning. The previous year also saw the debut of the Twins concept for UCB, which
expresses the themes of the various collections very effectively.
Commercial policies were also launched in 2005 aimed both at broadening the product offering to include “nice price” articles while favoring an increase in customer traffic in the points of sale and at the same time at supporting an increase in margins for our partners so that they can invest to keep the sales network fresh and up to date. The results achieved will enable us to continue confidently along this path in 2006.
In the area of co-branding, Benetton and Mattel have begun a global partnership through
December 31, 2006, for the creation of a girlswear line called “Barbie loves Benetton”,
which has been well received throughout the world.
With regard to licensing, of particular note is the agreement with Zorlu Holding, one of
the largest Turkish groups, for Sisley Casa products, as well as the exclusive agreement with the French firm Selective Beauty for the development and global distribution of
United Colors of Benetton perfumes, colognes, and fragrances.
“The new Benetton Giyim Sanayi, a joint venture between Benetton and Boyner Group, manages all commercial activities
of the brands United Colors of Benetton, Sisley, Playlife, and Killer Loop. According to the development plan, sales should
increase by 50 percent over the next five years, thereby significantly strengthening our presence in Turkey. Benetton has
grown here like no other international brand. With entrance into the European Union, our domestic market is certain to
grow, as will our business in the Eurasia zone, which shows strong potential for sales development. Today in Turkey, there
are already more than 100 shops in 50 cities displaying the Benetton logo.”
Zeynep Selgur, general manager of Benetton Giyim Sanayi
“Barbie and Benetton have joined forces to create one of 2005’s most exciting developments in the world of fashion, delighting
and surprising customers throughout the world by combining Benetton’s brilliant abilities in the clothing industry and its strength
in distribution with the world’s most famous fashion doll. Being successful in business today means having the courage to run risks
and to support innovative, creative ideas. That’s the difference between a good brand and an exceptional one. The Benetton-
Barbie relationship shows that innovative thinking, imaginative leadership, and the courage to run with an idea can lead to exciting
results. Mattel is enthusiastic about this partnership and is looking forward to future innovations with Benetton. ‘Barbie loves
Benetton’ is a splendid partnership and a sign for these two world-famous brands that will stand the test of time.”
Richard Dickson, senior vice president of worldwide marketing, media and entertainment for Mattel