FAST FASHION. BENETTON AND ITS MAIN COMPETITOR INDITEX (ZARA).

Abstract

The aim of the thesis is to get a deeper look in the fashion industry, analyzing the changes that the sector has been through the years. The strategic choices that have been taken from one of the most important companies of the sector (Benetton) in the Italian reality and its main competitor Inditex, analyzing them and trying to understand their competitive advantages. Benetton has been successful thanks to its typical production and distribution structure that made him famous around the world, the same structure that is putting the company in serious difficulties. Benetton is famous for using franchising contract and it is exactly this contract that limited the company, they were not able to get from the stores the selling data and without these data they could not monitor the market and take the right decisions on their products. Inditex has been growing focusing on the final consumer, interacting and having feedbacks from them. Inditex, is a large retailer, has been able to innovate the market offering frequently, to the consumers, trendy products collections in limited quantity with limited price. Doing this they were able to ensure frequent visits and incentives impulse buying. Benetton is trying to adapt the new winning model, adopted from Inditex and other companies operating in the sector, increasing the number of collections during the season and reducing the price as the competition but still keeping the logic management of a typical production company.