Munich Personal RePEc Archive

Da Impresa Radicata nel Territorio a Rete Globale. La Ristrutturazione del Gruppo Benetton

Tattara, Giuseppe and Crestanello, Paolo (2008): Da Impresa Radicata nel Territorio a Rete Globale. La Ristrutturazione del Gruppo Benetton. Published in: Economia e società regionale , Vol. 103, No. 3 (1. November 2008): pp. 58-84.

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Abstract

This paper investigates the strategy changes of the Benetton Group who have been facing severe intense competition in the international fashion market since the mid nine-ties. New competitors, in particular the European brands Zara, Mango and H&M, have challenged the Benetton position in the Italian and European clothing market, pushing the Group from Ponzano towards adopting politics of cost reduction through globalisation of its suppliers. Benetton has always been considered a vertically integrated producer which controls (in different ways) the whole value chain from textile raw materials to consumer sales. Until 2000, Benetton produced its goods in its own factories and through a vast network of national sub-contractors mainly specialising in the sewing phase. Today, Benetton has drastically changed its strategy, almost completely abandoning Italy with a chain of value organised around a dual supply chain: fast productions are delegated to closer locations (Eastern Europe and Northern Africa) while locations further afield are commissioned for more standardised products and accessories (Asia). This article also discusses the impact these choices of productive de-localisation abroad have made on the Treviso apparel district, where Benetton's traditional subcontractors have been drastically curtailed. Benetton restructuring marks the transition to a new net-work of competences between agents.

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