In a highly depressed economic environment, constant currency revenues fell by just 3% in 2009.
The decrease in turnover on mature markets was limited to 5% on a constant currency basis. In particular, the Group generally defended its performance in
Italy
, where revenues contracted by just 4% and which continued to be its principal market accounting for 48% of revenues. This is a good result, achieved thanks to the excellent level of collaboration with the Group's agents and customers, by following a strategy that focuses on large stores in the major cities, and a wide presence in other cities and secondary towns (over 2,500 stores) giving deep market knowledge. The rest of continental Europe performed in line with the general sector trend. Markets in the Iberian peninsula slowed, after being more severely hit than others by the economic and financial crisis. In Asia, excellent results were achieved on the Korean market with strong double-digit growth.
2009 revenues from third parties by geographical area (%)
The Group's emerging markets reported 14.8% constant currency growth.
Amongst these,
India
performed particularly well with an increase of 48% driven by the opening of new, strategically located stores and corners. This strong performance confirms the Benetton Group's position as the country's top international brand and has increased the Indian market's share of the Group's turnover from 1.7% to 2.4%. It should be noted that these results were achieved with the UCB brand, thus leaving interesting, as yet unexploited potential for the Group's other brands.
The policy in the Chinese market has seen efforts concentrated in strategic cities in order to optimize the Group's presence. The Group is completing its refocus on
Shanghai
,
Beijing
and surrounding areas with the selective closure of less profitable stores and the opening of new ones in areas of greater interest with higher growth potential; the initial results are favorable. A different buying policy was adopted in the direct stores during the year, using different depths and mixes.
The results in
Mexico
were gratifying. The policy of concentrating openings in the major cities and more important commercial centers, thanks to the strategic agreements with Sears and Axo for developing the United Colors of Benetton brand in this country, has doubled revenues on 2008 and increased the number of points of sale by almost 50%. The comparative results of direct stores and corners were positive.
In Russia, the impact of the economic crisis and the overall reduction in consumption were countered by the introduction of new product segments (Sisley Young) and targeted actions in the network's favor. One of these was the formation of a new local trading company: the Group is now closer to its customers, with a more efficient, faster service, in this market which still retains its growth potential.
Despite contraction in the local economy, Turkey saw the Group raise its market share thanks to enlargement and repositioning of its principal stores and the opening in October of an innovative flagship store in Istanbul. Designed by Piero Lissoni, it occupies an entire building on the prestigious Bagdad Street and offers the complete United Colors of Benetton collections for women, men and children. This new store joins Turkey's already strong commercial network and is the first in a series of futuristic stores designed by famous architects and architectural firms and by young creatives, due to be built as part of the Opening Soon… project. Local production, which accounted for around 60% of sales, helped counter the effect of a weak Turkish lira. This is an important competitive advantage in the current economic environment.