UNITED COLOURS OF BENETTON AND PRIMARK

United Colours of Benetton and Primark

United Colors of Benetton and Primark

Introduction

Background

The apparel complex includes the total production and flow of goods from the origin of the fiber to the final consumer of the finished end-use product. The ultimate consumer is the person who will place the garment in use. The retail operations are the immediate channel members and major customers to the apparel industry. The UK apparel retail industry recovered from marginal decline in 2009 to post fairly strong growth in 2010. Growth is expected to continue through to 2016 at a fairly steady rate. The UK apparel retail industry had total revenue of $54,495 million in 2011, representing a compound annual growth rate (CAGR) of 2.1% between 2007 and 2011. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 3.4% for the five-year period 2011 - 2016, which is expected to drive the industry to a value of $64,379.6 million by the end of 2016 (ryerson.ca).

The clothing industries of industrialized countries suffer today effects of the globalization of markets. Historically, the industry has tended to be highly protected by quotas and tariffs. Exchanges between countries are often heavily influenced by the opportunities and barriers to entry arising from trade policy. Retailers control a growing share of market are adopting more and more of their own design team to develop all or part of their exclusive collections sold under private labels, which they gives control over the development and branding of products. Retailers control access to consumer end, this strategy reduces the market share available to manufacturers. In return, manufacturers are increasingly developing their own retail distribution network. While the lack of technology threatens competitiveness of enterprises, their adoption requires them to new ways of working and generates new needs expertise. In order to increase their effectiveness in a highly competitive environment, networks of distribution will seek to better manage their supply chain, which will require close partnership and information sharing between retailers and strategic suppliers and between suppliers and subcontractors. The use of information technology in the supply chain, from production and distribution will be increased, which will result in the need to integrate new expertise and ways of doing business within (Athlone 2007, p. 1).

Benetton Group is engaged in manufacturing and marketing of textiles and apparels. The company offers its products under the brand names: United Colors of Benetton Adult and Kids, Sisley, Playlife, Undercolors, Sisley Young and Killer Loop. The company operates in Europe, Asia and North America. It is headquartered in Treviso, Italy and employs around 7,808 people. Benetton Group is an Italy based company that designs, manufactures and markets fashion apparel in wool, cotton, and woven fabrics. It also offers leisurewear apparel. The company operates in Europe, Asia and North America. The company operates its business through two segments: apparel and textile. The apparel segment of the Benetton Group is represented by the brands of United Colors of Benetton Adult and Kids, Undercolors of Benetton, Sisley, ...