NUMBER 5 • JUNE 2016

THE RIGHT TO BE MOTHERSInvited by the United Nations to participate in the World Humanitarian Summit in Istanbul, Benetton presented a campaign in support of mothers in crisis situations. Ours was the only Italian company attending.

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MONTMARTRE GOES DENIM. WITH SISLEYThe well-known fabric that made blue jeans famous served as the backdrop to an event that both celebrated the brand’s identity and promoted the rue Montmartre store, in the presence of the most famous French fashion bloggers.

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CHANGE AT THE TOP

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Benetton welcomes Francesco Gori, new non-executive president of the board of directors.

AT BENETTON STUDIOS THE SPRING 2017 COLLECTION TOOK TO THE CATWALK ALONG WITH AN EMOTIONAL INSTALLATION ON WOOL, THE "KNITWEAR THEATRE"

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A WORLD OF COLOURS

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EMOTIONS ARE CRUCIAL ALSO IN-STORE

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Marco Messini tells us about distribution strategies, new openings and future goals as well as how to forge winning relationships with IOS stores.

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A consumer event was held for the "On Canvas" store in the city. Group selfies and colourful popsicles abounded

BENETTON CALLS, PIACENZA ANSWERS

Close encounter with Genking. The fascinating model and face of Japanese television – who became famous in her homeland thanks to social

networks – was the star attraction at the reopening of the Sisley store in Nagoya Parco. This particularly exciting event witnessed the presence of a gay icon who the Japanese often compare to Skin, the famous lead vocalist from the British rock band Skunk Anansie, another of the Sisley brand's celebrity faces.

EASTERN EYESJAPAN

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As Piacenza celebrates, so does Merano. On March 19th a 300 sqm. UCB adult and kids On Canvas store was inaugurated in Corso della Libertà.

One of the main cities of the Emilia Romagna region celebrated the "On Canvas" franchise store with an event that "coloured" its streets. Moreover, thanks to a series of initiatives, on 21 May the public took the spotlight in the central street of Via XX Settembre, a few steps away

from the historic Piazza Cavalli, the heart of life in Piacenza.

Everybody pose and then... let's party!The city was brought to life by the UCB format dedicated to consumers. People took group selfies, which were then shared on official Benetton social networks (the Facebook page first and foremost) under the slogan "Hello Piacenza!".Colourful popsicles, Benetton branded city bags and a wild DJ set took centre stage during the Saturday afternoon party, which enlivened and entertained the city.

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The UCB Spring 2017 collection was presented on 3 May in front of 800 people

One new collection, 800 people and 80 models on the catwalk including adults, children

and toddlers: these are the key numbers of the fashion show for the presentation of the UCB spring 2017 collection, held on 3 May at the Benetton Studios, in the evocative area usually devoted to Formula 1 cars.

An event in three partsThe event was divided into three distinct phases. The protagonist of the first was CEO Marco Airoldi, who kicked things off at the Studios arena. Following this, the guests -

largely commercial partners, agents and buyers from all the countries in which the Benetton brand operates - were accompanied to admire the Knitwear Theatre, an emotional, iconic and colourful installation recreating a big ball of wool that - as it unrolls - crosses the looms and becomes a sweater. Finally, it was the turn of the catwalk, the themes of which continued those of the collection, i.e. the "canvas" - the white canvas and art in general - with video projections evoking the pillars of the new collection (dress up, dress down and dress to move) encapsulated by the headline "Clothes for Humans".

A (colourful) race that never ends. The Color Run, of which Benetton is the main sponsor, is the world's most original non-competitive sporting event. It continues to win the hearts (and legs) of fans: after the first stage in Turin on 30 April, in which 20,000 people participated, it was Bari's turn on 14 May, with 5,000 participants, followed by Trento (13,000) on 21 May. The last of the events in May was on the 28th, in the "Tricolour city", Reggio Emilia (8000 people): the city where the Italian flag - with its three colours green, white and red - was born was an almost obligatory stop for the most colourful race in the world.

THE RACE CONTINUESTHE COLOR RUN 2016

Leaving from Milan to "conquer" Europe. After the first stage of the new UCB Fall-Winter 2016-17 collection press presentation, in a private apartment in Torre Solaria in Milan, the collection kicked off the road show that is taking it to several European capitals. As had been done in Italy, for the international presentations the charming atmosphere of an apartment was recreated to express the concept of "Clothes for Humans" and its three segments, dress up (elegant), dress down (informal) and dress to move (sportswear). This formula worked well and was appreciated by the media in Monaco, Paris, Lisbon, Madrid and Athens.

ABROAD AS AT HOME

THE ROAD SHOW PRESENTING THE UCB F/W 2016-17 COLLECTION CONTINUED IN EUROPE

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THE FUTURE TAKES TO THE CATWALK

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opportunity to give the garments a closer look, and provide visibility to the Spring-Summer 2016 clothing collection.

The Sisley identity was celebrated in the heart of the Ville Lumière in an event that involved 23 fashion bloggers. The protagonist: denim, the historic fabric used to make jeans

T he Rue Montmartre store (dedicated to women), an artist and some prestigious guests: these are the

ingredients of a special event that brought some additional flair to Paris in May. Objective: to promote the new store and, in general, Sisley’s DNA.The event took place on Thursday, May 12th, and marked - in some ways - a return to the brand's roots. The central element was, in fact, denim: the cotton canvas with which the brand started its adventure in Paris in 1968.

A made-to-measure collectionThanks to the presence of Elijam – a prominent name of the Family Drugstore creative factory – the denim garments ( jackets, jeans and mini-skirts) were customised with studs, crystals, sequins and ad-hoc prints, and subsequently donated to the fashion bloggers who shared

PARIS IN BLUE. OR RATHER, IN DENIM

Its name is Spring Attitude, and for seven years now it has been one of the events that draws the capital's attention. It is the International Festival of

Electronic Music and Contemporary Culture, and from this year onwards Sisley will be its official partner.And it's not just lip service: on Sunday, May 22 the store at Via del Corso 48 hosted a special aperitivo to celebrate the festival's finale. The event was livened up by the participation of some of the festival's DJs, who transformed the shop into a very special dancefloor. And the public was not long in coming.

In Rome, the brand is an official partner of the electronic music festival. In the spotlight: the store in Via del Corso, transformed for an evening into a dancefloor

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SISLEY: MUSIC AND FASHION

their impressions on their social channels, thus increasing interest around Sisley. For them, the day was also an

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Face to face with the Chief Distribution & Sales Officer of UCB, who comments (with satisfaction) on the good results of the last few months and warns: «No resting on our laurels»

«Why did I join Benetton? It was a gut feeling». A confession that you would not expect from a manager

like Marco Messini, always used to focusing on business results. Yet, in his own words, the decision to accept the position as Chief Distribution & Sales Officer - in January 2015 - was largely an emotional one: «I couldn’t not want to be part of such a "historic" and famous brand». We met with him to talk about franchising, On Canvas, and much more.

Marco, you boast a lot of experience in the clothing and footwear sector: VF Corporation, Timberland, Diadora, Champion... How is Benetton different? «From a business model point of view, Benetton operates in a very dynamic sector, which changes at a dizzying pace, and therefore our response must be quicker. I was

In this regard, Benetton has always taken great care of the shopping experience. Can you also guarantee it in the sales points that are not directly controlled?«It’s possible thanks to the exchange I referred to earlier. Keep in mind that Benetton is a unicum on the market: while almost all companies base their business on indirect multi-brand stores, about 70% of our revenue comes from indirect mono-brand stores. For this reason its very important to forge a closer relationship from the point of view of the shopping experience and of the formats. Consumers do not know who the actual owner of the store that they are shopping in is, but they still want to try an experience that maybe was born online but is finalized in-store; after all, we are in the multi-channel era...»

Your mention of formats allows me to ask you for an appraisal

EACH SUCCESS MARKS A NEW BEGINNING

MARCO MESSINI

lucky enough to work for well-known brands with strong identities, but nowhere else, except perhaps at Timberland, did I find the passion and the sense of belonging that I found here, two values that it is to also transfer to our external stakeholders and to which the company must commit itself a great deal».

Are you referring in particular to the network of indirect sales points?«Of course, the indirect channel is worth about 75% of our business, and for this reason it is essential to cultivate a continuous relationship with our partners. For us, the franchise is not just a contract but a relationship based on real exchange: we deliver knowledge, and in return we receive information about the market and consumer behaviour of a particular area. A perfect combination that fosters a winning model».

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of the On Canvas project, two years after the first flagship store in Milan.«My appraisal can only be very positive: 125 sales points were opened - more than half of those by partners, confirming what I said before - registering an overall growth of 20% in the performance of this line of shops. The concept is constantly changing: in recent months, we have actually worked to fit it even in smaller shops, for example those dedicated solely to the Kids line, and to the corners for department stores, making it even more attractive and functional. All new franchising stores will implement the new concept but, if I had a magic wand, I would instantly turn all our 5000 stores into On Canvas».

Is there an opening that you are most proud of? Perhaps because it was unexpected or particularly significant...«In recent months we have opened in prestigious international locations like Paris, Prague, Venice and many others, but I like to cite the case of Capri because it is a virtuous example: it was a semi-abandoned shop, left closed for several months, despite the amazing location. Thanks to our intervention it has radically changed direction, and now the Capri store is one of our greatest points of pride. This is a successful example that both the company and its partners should always aim for. Of the upcoming openings, on the other hand, I want to mention the one in September in Madrid, in an excellent location of the strategic Gran Vía».

What is the key to being successful in countries that are so different from each other in terms of culture and traditions?«I am convinced that the identity of the brand and the values associated with it are fundamental: colour, knitwear, social commitment and the coexistence of diversity - all universal values for us. This of course does not mean that we should not take into account the differences between cultures, especially when

we move away from the multicultural metropolis to the suburbs. But there is a way to adapt products and distribution strategies without losing our identity».

In 2014 the new Benetton Group development plan began. Today we are about halfway through. What can you tell us about the results achieved?«With what we have put into motion the last year and a half, I can only say that I am very satisfied. The plan is making good time, concentrating on the development of the core business and particularly on the UCB brand. The company closed 2015 without debt, the accounts are positive, we have created a business model platform which in recent months has stabilised itself. But it is not the time to rest on our laurels with these results, we cannot afford it, there are still many things to do. In this sense the end of 2016 and 2017 should be the time when

Francesco Gori is the new non-executive chairman of the Benetton Group Board of Directors. He was appointed on May 9, during the general shareholder's meeting called to approve the 2015 budget and to approve new board members. Born in 1952, Francesco Gori earned a degree in Economics from the University of Florence (his hometown). After working experiences during his studies, in 1978 Gori began his professional career in Pirelli, where he was in charge of the motorcycle tyre unit. He held various positions in the company, in Italy and abroad, and he was appointed Managing Director in 2001 and CEO in 2006. He left the group in 2012 of his own accord and since 2013 he has been acting as an industrial advisor to major companies, including international ones. This experience brings him to Benetton Group, where he holds the position of non-executive chairman to be involved in the Group's important reorganisation.

FRANCESCO GORI JOINS BENETTON GROUP

we recapture double-digit growth rates, especially in terms of store revenues».

How?«It's premature to talk about it, but I can say that the industrial programme provides a significant economic investment within three years intended mostly for the expansion and renewal of the commercial network. Furthermore there will be huge innovations in the digital sector, a sector which can bring enormous benefits also to the network of shops, both direct and indirect ones, but we'll talk more about this at a later stage...»

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As many as 15 foreign countries were represented by HR managers, training

managers and colleagues involved in training activities, all with a unique mission: "Elevating people for Increasing Results".Five days dedicated to the development of training packages to be implemented at an international level, with the aim of giving our business a concrete benefit: accelerating growth and raising the skills of our stores' staff.Growing UP, Performing UP, In Store UP: these programmes will serve as a basis for a roll out in all countries of training courses that will allow for a comprehensive evaluation of potential, performance and training initiatives. "Growth" is the watchword.

An entire day was dedicated to Product Training with the challenging goal of building a training package for our stores, focused on the Fall-Winter 2016 collection. The Product Lab was organised together with John Mollanger, who spent the entire day with the participants to transform the vision "Clothes for Humans" into a sales language for shop staff around the world. The day closed with the Dress UP themed party.Our Human Resources Director, Beppe Cavattoni, was quite satisfied and thanked the top executives - Michel Lhoste, Matteo Ortolina and John Mollanger - who participated in the initiative, as well as all the country managers who supported the event, the country representatives for their valuable contributions, and finally Gabriella

ALL IN ONE: THE GLOBAL HR COMMUNITY MEETING

Valentinotti and the Training & Development team for having consolidated the global drive of the HR ALL IN ONE community.

Retail training and shop staff development are the main themes of the Training and Development Global Town Hall at Benetton’s headquarters

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RELATIONSHIPS AS A FACTOR OF SUCCESS... WITH SISLEY PARTNERS

Performing efficiently through our shop staff is our greatest challenge, and for this reason ten Sisley FOS channel partners participated in a training course on May 5 and 6. "Relationships as a success factor" focused on empowering one’s managerial style.This was the first training activity dedicated to our partners, with the aim of supporting them in improving their ability to communicate and manage relationships with employees, strengthen leadership and delegation, and develop a managerial model that motivates and empowers employees. The course was created in collaboration with the Luiss Business School and focused on the importance of relationships, as well as on tools and methods to manage people in stores. Specifically, it focused on basic "soft" skills and on motivating employees. The training course was divided into four main topics: effective communication, relationship management, leadership and motivation, and delegation and feedback. Partners who participated were very satisfied, saying the courses marked an important change of course for the company.

THE FIRST TRAINING COURSE DEDICATED TO SISLEY'S FRANCHISE OPERATING STORE (FOS) PARTNERS

MYJOB MODULE COMPLETED, NOW ECONOMICS AND KPIS

The "Who is a Planner" training course, whose first module ended in May, received significant attention from - and

was given positive marks by - all those who participated. The program, designed and organised with H2O and the Luiss Business School and with the support of some in-house colleagues, is a training novelty in 2016 dedicated to all the planners of the franchise channel. The objective is to help planners do their best in a newly-defined and strategically important activity: ensure a proper shop range.During the first module, carried out in three different editions, the focus was on awareness of the role and instruments available for performing work as well as possible. The first meetings dedicated to the second module have already begun, during which analysis of economics and KPIs will be dealt with in detail. The last two modules will be dedicated to soft skills, assortment monitoring and replenishment and will be delivered between September and November.

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SARAH ANAM WINS CORPORATE SUPER CHEF INDIA

On May 7, the very young but very talented Sarah Anam, of Benetton India's Production Department, was officially crowned the winner of the Corporate Super Chef India contest.More than 2,000 workers from more than 30 corporations based in the country took part in the first culinary competition devoted to big businesses. Sarah had to overcome four trials to win her title. After the intra-corporate round, in which seven Benetton teams battled it out, the semi-final was held between 150 participants from different companies. The test saw competitors create their own choice of a drink and a dish, and the judges awarded marks for innovation, the use of ingredients and presentation. After another elimination round, the five finalists competed on board a food truck, and the judges unanimously voted Sarah Corporate Super Chef.

OUR COLLEAGUE IS THE STAR OF THE INDIAN CULINARY CHALLENGE

BENETTON AWARDED FOR POSITIVITYBENETTON RECEIVES THE POSITIVE BUSINESS AWARD IN THE SUSTAINABILITY CATEGORY

The Positive Business Sustainability Award is an important recognition of our commitment to, and efforts in, treating social responsibility as a positive value and a fundamental part of our mission in the management of human capital.The award recognizes the value of the initiatives we have undertaken during the past year in the area ofSustainability and People Strategy, and in particular for the "Welcome Back Mom" programme, which supports women returning from maternity leave and which to date has involved 22 mothers. These initiatives also included a series of seminars on the theme of "Educating children to Happiness", in which about 600 of our colleagues participated, together with their respective partners.The Positive Business Award was initiated by the Business School Scuola di Palo Alto with the aim of recognizing, selecting and - above all - rewarding those people and organizations that transform positivity into a resource and a powerful stimulus for growth and development to meet the challenges of the business world.

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ON THE SIDE OF MOTHERS, TO MAKE THE WORLD A BETTER PLACEBENETTON IS THE ONLY ITALIAN COMPANY PRESENT AT THE FIRST INTERNATIONAL HUMANITARIAN SUMMIT IN ISTANBUL, WITH A CAMPAIGN TO SUPPORT MATERNITY IN EMERGENCY SITUATIONS

The image is so powerful it speaks for itself: a child born in a context of total destruction. This is the

new campaign commissioned by UNFPA (the United Nations Population Fund), in collaboration with Benetton Group, to support the right to health and maternity of women in the most dangerous places on the planet. Safe Birth Even Here - the title of the campaign - was presented in Istanbul on the occasion of the International Humanitarian Summit that has mobilised governments and institutions around the world. And Benetton was there.

From Istanbul to the whole worldDesired by the Secretary General of the United Nations, Ban Ki-moon, the summit was held in Istanbul on Monday May 23rd and Tuesday May 24th, with the aim of reinforcing the commitment of the international community to respond to humanitarian emergencies that recent events have brought dramatically to light. The focus is on the protection of the women and children affected. Hence the theme of the campaign - designed by Fabrica with their

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usual efficacy - which will also support a fundraiser to provide the health facilities needed in refugee camps, war-zones and places hit by natural disasters.

A call to social commitmentBut Benetton's role is not limited to the Safe Birth Even Here campaign. At the summit, Professor Chiara Mio, as chairman of the company's Sustainability Committee, also took part in the launch of the "Youth

in Humanitarian Action" pact, of which Benetton is a signatory. Our group was also selected – the only one in Italy – as one of the ten representatives from the private sector who had the honour (and the responsibility) to announce their commitments in front of the leaders attending the summit's plenary meeting. A recognition that fills us with pride and also serves as an incentive to work harder for social causes.

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enthusiastically agreed to loan her the garment, and the exhibition was so successful that it traveled from the English capital to the United States, where it remained in the capital of country music, Nashville, until last September.

The tour continues...Earlier this year the Victoria & Albert Museum requested to extend its loan: new stops have been planned for the exhibition, the first of which opened its doors on 26 May in Montreal. The sweater - displayed in the "Knitwear" section alongside brands of absolute excellence such as Missoni, Krizia and Laura Biagiotti - is an excellent tool for promoting Benetton's design and technology prowess to fans all over the world.

From Italy to Montreal, via London with stops in Minneapolis, Portland and Nashville along the way. We're not talking about the tour of a popular musician, but rather a women's sweater. And not

just any sweater: one of the historic garments of the United Colors of Benetton collection, which over the past two years has left the Benetton Archives behind to take part in a very "trendy tour" organised by the Victoria & Albert Museum in London.

On both sides of the AtlanticIn fact, the V&A curator Sonnet Stanfill's first request dates back to 2013, when she asked if she could display the UCB sweater with the exhibition "The Glamour of Italian Fashion", in the section dedicated to the eighties (the garment dates back to 1986). Benetton

During Milan's Design Week in April, anyone strolling around Piazza del Duomo could not

help but notice the tens of shop-windows of the UCB flagship store decorated by Fabrica to celebrate the thousandth issue of the magazine Domus. At the close of Design Week, celebrations shifted to the Milan Triennale, which is hosting an exhibition, A Tribute to Domus 1,000, which sees the creativity of Benetton at the forefront.

Equilibrium on showThe exhibition, running May 12 - June

DOMUS, 1,000 ISSUES AND GOING STRONG

5, is in the Impluvium Room and features the participation of some of the leading brands in international design, from Agape to Citroën, Kartell to Fontana Arte, all the way to Smeg. These companies have agreed to donate an object from their collection, and to "dress it up" with Rose Quartz and Serenity, the Pantone® colours for 2016. These hues inspire balance, order and serenity. All these objects, prepared masterfully by Fabrica artists, have composed a three-dimensional

gallery that narrates colour and experimentation. This is a visually stunning installation, an open book on the history of design.

FABRICA CELEBRATES THE THOUSANDTH EDITION OF THE HISTORICAL MAGAZINE WITH AN EXHIBITION IN MILAN TRIENNALE

A sweater from Benetton's historical archives is "on tour" in museums around the world. Exhibition in Montreal inaugurated on May 26th

THE V&A MUSEUM TAKES UCB ON TOUR