Dual Supply Chain

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Introduction

Benetton is an Italian brand created in 1965 by Benetton family. Its core business is clothing and fashion wears. The Benetton group is composed by four brands specialized in different segments:

• United Colors of Benetton: which is a global brand well known all around the world present in different sectors like eyes wear, perfumes, accessories and every day wear.

• Undercolor of Benetton: which is an extension of the united color of Benetton .this brand is specialized in undergarments.

• Sisley is another brand of Benetton group to answer to fashion wear request. Sisley makes a special attention on design, fabrics and new ships.

• Play life this brand is specialized leisure wear.
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It however had a few drawbacks. It required the network partners to place most of the orders around eight months in advance. At that time, most of the stores did not have much idea about the upcoming fashion trends.

The feedback from the customer also was not incorporated.

Problems of Benetton on the 1990’s

During the 1990’s, the fashion market had changed. Offering good quality products and presenting a “cool” brand image was not enough to maintain a leading position on the fashion industry. Indeed, other competitors like ZARA and H&M had appeared. These companies introduce a new concept which is the “fast fashion”. Each brands offered the opportunity for customers to discover an average of 12 collections per year. In order to guarantee a good “rotation” of their stocks, they created specific Supply Chain systems. After that, the price of clothes was affordable to seduce the most potential customers possible. Finally, for these low prices, these brands offer trendy product. Design began having a strategic importance. For instance, ZARA had approximately one hundred designers to create ZARA products.

Comparatively, Benetton had an old Supply Chain management. In fact, the company only produced two collections per year. Their clothes had a too classic way: Bright colored Clothes .Price of Benetton’s clothes was high, compared to H&M and ZARA products.

The other big issue of the company is their way to commercialize heir
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