economy, world culture and individual lives.

internationally, and distribute worldwide at the click of a button.

global capitalist economy, with massive fashion consumption in wealthy countries, dependant largely on cheap labour in poorer countries.

Globalisation in Retail 

Yr 1 Wk 2 Lecture

2. Individualism / 

Collectivism

3. Masculinity

4. Uncertainty avoidance

5. Long term orientation

6. Indulgence / Restraint 

Society →  long term orientation / short term normative.

Long term orientation also defined as pragmatism.

·      Failed to localise and understand fashion taste in other countries.  

·      Sizing was wrong 

·      Didn't research shopping habits of international consumers  

·      Didn't understand local labour laws – didn't realise stores don’t open on Sunday in Germany 

·      Timing of merchandise launch was wrong – Europe shops earlier for AW  product

·      Legal constraints of moving goods in and out of countries.  

·      Majority of international  stores unprofitable due to high labour costs.

·      Stores felt cluttered 

·      Perception of cheap clothing

·      Supply chain issues and complicated range strategies

·      Failed to develop local supply chains 

·      Speed to market slowed 

·      Management team distracted

·      Didn't research or listen to the customer! 

·      Fell behind the competition – Zara – H&M  

·      4 billion sales at its peak

·      Opened 200 stores globally 2005-2015 

·      Canada China Brazil first international markets

·      Expanded to 40 countries.  

·      But not successful internationally 

·      Sept 19 – filed for bankruptcy with 785 stores 

·      Owned by Benetton family – 67% stake through Edizione Srl (holding company)

·      Based in Treviso, Italy

·      Total turnover of € 2.33 billion

·       150 million garments sold every year, 6949 employees, 6000 stores, 120 countries (2012)

·      Brands – 012 (kidswear) Playlife (extincted) , Sisley & United Colors of Benetton

·      Others- Cosmetics, Perfumes, Toiletries, Merchandise, Watches

·      Product Innovation: unique global products, same design, same apparel sold through similar store formats across globe

·      Process Innovation; delayed dyeing, garment dyeing, postponement strategy to reduce lead times and costs

·      Organizational Innovation; Divisional structure, Unique Agents model for managing retail franchise, Dual Supply Chain structure.' Quas'i Franchising system for retailers (License approach instead of Franchise – resulting lesser legal complications, quicker operations and better control)