It took only a few decades for Luciano Benetton to transform his family's small sweater business into a mighty international player on the retail scene. By developing innovative manufacturing facilities and creating a whole new genre of advertising around its trademark political shock ads, Benetton created a fashion empire that rose to fame in short order and peaked in the Eighties and Nineties.

More recently, however, revenue losses attributed to low-quality products, failed advertising themes, and dissolving distribution deals are forcing the Italian clothier to rethink its marketing strategy in the face of increasing European competition and shifting fashion trends.

To help the company regroup, the clothier named former Fiat executive Silvano Cassano as chief executive, and outlined a $526 million plan aimed at returning Benetton to the growth path, which includes higher-quality goods, a more diversified product assortment covering beauty accessories and homewear, and more megastores.

New strategies come with risks, but with solid market research and a new CEO the Benetton Group is confident that its best days lie ahead.

(January, 2004)