Luciano Benetton1.1 History1935: Birth of Luciano Benetton1955: Opening of his first laboratory with his sister Giuliana. The idea is based on the use of 'younger' colors and clothing. The brand is called 'Très Jolie'. 1963: Arrival of his brother Gilberto to take care of the finances. 1960s: - Discovery of the process of dyeing sweaters after making them and the brand takes off - Rapid construction of a factory. petite1964: Success of the store opened by Piero Marchiorello.1965: Opening of the second store in Cortina d'Ampezzo, the Benetton system takes shape.1969: 500 sales points in Italy, first store in Paris1983: Aldo Palmeri takes over the transformation of the until then a family-run company 1986: Entry onto the Milan Stock Exchange and then onto five other financial markets. 1989: Various equity investments and new types of products 1.2 Benetton's position in 1994 In 1994 the textile market represented 250 billion dollars in the EU and employs 2.5 million people. Germany, France and Italy are the major producers and the market is very fragmented. The Benetton group is the European leader in clothing with a turnover of 1.74 billion dollars and a net profit of 131 million dollars, 12.7% in Europe and 36% outside the EU. The Benetton group manages three main brands: - United Colors of Benetton: 60.8% of turnover - 012 United Colors of Benetton: 18.5% of turnover - Sisley: 11.8% of turnover Including all derivative products, consolidated turnover of Benetton worldwide was $6.2 billion in 1994.1.3 Success and Competition Benetton's success appears to lie in its initial positioning (colorful clothes that anyone can wear) and its operation (which we will develop later). It can therefore boast of being the only decidedly international brand. However, even if there are no competitors of its size, the company faces strong national brands in each country (Kookaï in France, Gap in the US) that have a strong desire for innovation. expansion.2. The production system The system implemented by the Benetton family is truly surprising. They actually use more than 500 subcontractors! They represent 70% of the production process and almost 30% of all costs. These subcontractors are often small companies and work exclusively with Benetton, which allows the group to reduce its costs and have enviable flexibility and flexibility..