Fast fashion goes global: Benetton’s changing strategy

Abstract

Purpose

To trace the development of the Benetton Group and describe the causes and consequences of the clothing retailer’s transition from a market-driving to a market-driven strategy.

Design/methodology/approach

Presents a history of the company from its beginnings in the 1960s, listing the innovations it adopted to support rapid expansion. Describes the emergence of “fast fashion” retailers such as Zara during the 1990s and explains how and why Benetton subsequently changed its strategy.

Findings

It all started with a yellow jumper. Back in the 1960s, Italian men typically wore dark-colored sweaters under a jacket. So when his friends asked if they could have a brightly colored jumper like the one his sister made for his son, Gilberto Benetton realized that they had a different value proposition from traditional companies – and the start of a business. Soon Benetton had a company producing sweaters for local independent retailers in Italy. Plans for expansion brought further innovations that were new to the clothing market of the time.

Practical implications

Draws attention to the value of first-mover advantage and the need to align competitive strategy with current market conditions.

Social implications

Highlights the value of Benetton’s emphasis on developing long-term relationships based on trust with suppliers and retailers.

Originality/value

Questions the value of a market-driving strategy as the basis for sustaining long-term financial performance.

Citation

(2015), "Fast fashion goes global: Benetton’s changing strategy", Strategic Direction, Vol. 31 No. 11, pp. 17-20. https://doi.org/10.1108/SD-09-2015-0131