Interview: Luciano Benetton, Chairman, Benetton Group

INTERVIEW: LUCIANO BENETTON, Chairman, Benetton Group
"We want to remain first in India"

He once stripped to promote his name-and a cause. But, then, if you are Luciano Benetton, anything ordinary would be totally out of character. The fashion world's original shockmaster was the first to use themes, and not his product, to touch the consumer chord across markets. Pushing 65, Benetton hasn't lost any of the spunk that has helped transform his family's once-obscure name into a fashion mantra. Recently in India on a whirlwind second visit, Benetton spared time to chat with BUSINESS TODAY about the brand and its India experience. Excerpts:

Q. Mr Benetton, what brings you to India?

A. The need and the will to know more about India. I can see that it is changing, much like the rest of the world is. And as this process is very rapid, it is important not to ignore any part of it (the change), and be aware of what's happening.

It's been almost 10 years since your last trip to India. What are the changes you see around you?

The first thing is that the way in which business is done is much closer to the way it is done internationally. There were constraints on how you could do business, and fashion itself was a totally new concept. I leave here for Japan, where in the next two days we'll inaugurate two large super-stores, in Tokyo and Kobe. And from what I have seen in India, there's scope for something like that here too.

What has Benetton learnt about the Indian consumer in the last 10 years?

If you look at our target group-the young-it is the same all over the world. What we have learnt in the last 10 years is that the Indian young can be the same as the American or the European. The young tend to buy the same products all over the world- the same music, for instance. I don't want to say they are equal-there's purchasing power. In the West, young college-going students can buy some new clothes every month; may be that's more rare here. But in terms of expression of taste, how they think, they are the same.

When Benetton entered the country, there weren't too many fashion companies around. That's changed now. Do you think you'll be able to handle the competition?

We operate in 120 countries with 6,000 retail outlets. So, we are at the cutting edge in terms of research and development, product development, and spotting trends. We have 200 people scouring the world for new products, ideas, styles, and trends. In the last three years we've invested $500 million in acquiring retail properties in Europe. That's a competitive edge. Not every company has the financial means to compete in such a market. Looking forward, there will be fewer number of competitors-all very strong-and the real battle will be on the retail front: how much you can offer to the customer in terms of product range and quality. We should not lose our first-mover advantage in India. We want to remain first.

What's the Indian agenda for Benetton? Does the company have plans to source products from India?

We wish to expand both our manufacturing facilities and our marketing presence. But right now the Made In Italy brand is very strong. We do source some of our range from India but that's very marginal. However, looking at the quality of our manufacturing here this is not a possibility that can be precluded.

If you were to sum up what Benetton symbolises in one line, what would that be?

To look into the future. To innovate constantly.

Controversy has been a key part of the Benetton brand communication. In retrospect, how much has all that noise helped the brand?

We think it has generated a lot of awareness. As a matter of fact, Benetton is one of the top brands in the world. What we expect from our communication is awareness of the brand and not so much of the product. If I show the product, then I am reaching out only to those who are interested in that particular product. I am missing out on all the others. On the other hand, if my communication is based on subjects of common interest, I reach out to everybody. I took a risk by deciding not to focus on the product. But I am happy that the strategy has worked and made the brand one of the most popular in the world.

What does the Benetton symbol stand for?

It's fashioned after a knot that is made when you are hand-knitting wool.

On the basis of what you've seen, what's your brief to Benetton's India CEO, Natalino Duo?

Natalino Duo: He's been giving me briefs for the last three days...please no more briefing.

Benetton: I think things are going in the right direction in India and, like I mentioned earlier, we have drawn up plans to expand our presence in India.

But does Benetton have any grand goals, like say, being in every closet in India?

(Laughs) We'll have to work day and night for that and probably set up 10 more factories. But the fact remains that we have big plans for India. Our objective is to become more and more important in the (Indian) marketplace.

One last question. What brand of suit are you wearing (Benetton does not make suits)?

It's second hand (laughs). But seriously, I am actually wearing a uniform (a suit) today because I had to meet you people. Usually, I dress better. I wear Benetton (laughs again).

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