Demand has broken away from traditional benchmarks and is changing ever more rapidly with customers of every age, who are less and less brand "loyal" in their purchasing decisions and have to be won over every time by a perpetually new, creative and appealing quality product at the right price. This is the picture emerging globally from a 2009 in which even the textile and apparel sector was impacted by the crisis. The Group had already understood the first warnings of this general confusion and responded with an overall redefinition of its product strategy. The collections are now leaner, simpler and more straightforward: this process was already started in 2008, but in 2009 the number of items for each collection was reduced by about another 7%.
The reduction in collection complexity, combined with upstream simplification in the production chain, has resulted in a general trend towards stores that offer more uniform, more focused products. This process will continue with the emergence of stores that are ever more accessible and user-friendly, while permitting optimal assortment management.
The first effects of these actions have already been seen. In a difficult context of global crisis, the United Colors of Benetton (UCB) Adult fashion brand basically confirmed its performance, with a slight reduction of 1.5%. The important Italian market was among those that held up well, while emerging countries continued to record robust growth. The results in India and Mexico were particularly positive, while the crisis affected results in Germany and Spain . These results reflect the outcome of a process of product relaunch and store redesign with a strong focus on factors such as furnishings, product display, frequency of new window displays and the construction of focal points within stores for attracting consumer attention. The Group was particularly active in supporting agents and retailers in spreading the operational techniques and formats throughout the network. The UCB Adult network now has a whole series of larger strategically-sited stores facilitating more effective product presentation.
The theme of simplicity and practicality was once again the underlying concept of collections. The 2009 UCB Woman's collection offered a sober style for customers seeking immediate, understated elegance; this sobriety was reflected in the choice of colors (blue, grey, black) and typically English type of fabrics. UCB Man offered a style midway between classic and casual, that focused on detail and high quality for practical, comfortable clothing. Benetton Man accounted for 21% of adult collection winter sales in 2009.
Even in the difficult 2009 UCB Children improved its performance by 1.4% and celebrated forty years of business with a major event in Rome . Sales of UCB Children have almost doubled in the past ten years, with the brand exceeding 30% of the Group's turnover in 2009. Thanks to this constant growth the brand is no longer perceived as an extension of UCB Adult, but rather as a specialized brand which has satisfied customer demands and won their loyalty. Year after year, the focus has been on segmenting the offer, knowing that children have different demands according to their age group, and on designing the collections in a consistent fashion. The "next frontier" is the world of pre-teens: the new Tween line proposes a neat, simple product for the demands of everyday use. A product that represents a real opportunity to grow in those markets, like North Europe, where these values are particularly appreciated. The dedicated network has also continued to develop, with more than 100 new children's stores opened during the year. Children's stores throughout the world have now been designed to create a warm, refined atmosphere, which is divided by style and product into System Baby (from newborn to 5 years) and System Kid (from to 12 years).
The offer for children is completed by the Sisley Young line, which enjoyed double-digit growth in 2009; this development was also reflected in the large number of dedicated stores that were opened in the year. The line managed once again to successfully catch the attention of young consumers with a refined product, offering a wide range of options.
After the weak performance of Sisley in 2009, the Group has taken steps to reposition the brand, with decidedly positive feedback from the sales network which, together with the first signs of a favorable customer reception, confirm the expectation for improved results by the next collections.
Fall/Winter 2009 focused on a casual, urban, sporty look, with the emphasis on wearability and soft, fluffy, warm fabrics: tweed, carded wool, wool fabrics, padded felt and fulled wool.
Playlife is a laboratory of new styles and brands which are flexible and embrace total interpretative freedom, offering romantic, sporty and relaxed chic styles for both men and women. This applies both to him and her, as both are given the opportunity to use their fantasy and creativity to develop an increasingly more personal style. The strengthening of the commercial network in recent years, particularly in Mediterranean Europe, has helped to sustain turnover.
2009 sales of core products by brand (%)