CHILD FRIENDLYPonzano Children is the childhood center founded by the Group and based on an innovative pedagogical method. And this year we celebrate together its 10th anniversary.

IDENTITY

A BRAND THAT GIVES JOYA few months after joining the company, Teri Naccarato told us her vision of the Benetton universe: «Our products make people feel good, it’s our identity. And we must hold tight to it».

VOICES

EVERYONE IS TALKING ABOUT IT

ABOUT

In this section, which debuts in this number, we discover UCB and Sisley in the fashion pages of newspapers and magazines around the world.

BENETTON’S OWN LA LA LAND IN MADRID

STORE

In UCB’s store on the Gran Vía people sing and dance to the rhythm of the Hollywood hit La La Land. But Barcelona isn’t being outdone…

BENETTON GROUP MET WITH INDIRECT CHANNEL PARTNERS TO TALK ABOUT FUTURE OPPORTUNITIES. MOVING TOWARDS AN INCREASINGLY “2.0” FRANCHISING MODEL.

FRANCHISING

MEETING THE CHALLENGE

BRAND

NUMBER 13 • APRIL 2017

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S urrounded by theaters and cinemas that host musicals and many other kinds of shows, the Benetton Callao

store – situated in Madrid's central Gran Vía – is the ideal place for partying with some good music. It was no coincidence, then, that the new On Canvas store, which reopened on February 10 after extensive renovations, was used as the location for “The Music Show”, held on March 25 to celebrate this prestigious opening.

Hollywood, MadridDifferent colored lights, a red carpet and a red colored gazebo at the entrance welcomed the participants, who were catapulted into a musical atmosphere typical of Hollywood movie premieres. And it was one of these movies – the multiple Oscar-winning La La Land – that served as the inspiration for a real musical performance that involved the whole store. The choreographed dancers whirled around the ground floor and along the large stairs that lead to the first floor, attracting the attention

of people passing by on the street outside. The show also reached outside the store: several hostesses welcomed customers at the entrance, greeting them with a colorful bouquet of balloons and providing information about the activities – including initiatives dedicated to children, like a fun dance class and face painting – taking place inside. As you would expect from the best cinemas, a cart distributing popcorn (Benetton branded, of course) made the rounds, further livening up the atmosphere.

New Opening on La RamblaIn keeping with Spain's biggest rivalry, Barcelona could certainly not be outdone by the capital. On the same day as customers partied at the Madrid Callao shop, the newly opened Benetton store located at 121 Rambla Catalunya was the centre of a consumer event featuring a light show accompanied by a dj set and activities for children. With its 735 square meters, the store is located in a strategic position in the city’s fashion district, visited every day by locals and tourists alike.

STORE

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The new On Canvas store opened in Madrid was the star of “The Music Show”, a musical event dedicated to over 3000 customers. In the meantime, another party was underway also in Barcelona...

SPANISH “FIESTA”

STORE

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The UCB store in Rambla Catalunya (Barcelona)

STORE

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“ The eyes are the window to the soul" was a firm belief of Greek philosopher Plato. An

intuition that psychology would only confirm many centuries later: our eyes, in fact, reveal much about who we are and what we feel at any given moment. Inspired by Plato's maxim, students in CEDIM (Centro de Estudios Superiores de Diseño de Monterrey), a university course specializing in art and design based

in the Mexican city, tried to answer the question "What emotion do your eyes express?". The response was the creation of eye-shaped sculptures, now displayed in Monterrey’s new Benetton store. With a surface area of 280 square meters, the On Canvas store, which recently opened in Fashion Drive Mall, offers consumers all the brand's new collections for men, women and children.

THE EYES SEE, THE HEART “HEARS”The brand's expansion continues in Mexico. A new collaboration with university students in Monterrey, who have created eye-shaped sculptures for the new Benetton store, is launched

The language of the eyesThe large shopping center, located in the New Leon region’s dynamic capital, hosted forty works by over forty students who used different colors, materials, techniques and ideas.The exhibition, supervised by the contemporary art curator Karen Huber, began on March 23 with an inauguration cocktail party and ends April 6.

If there is an ideal place for shopping, it's definitely the airport. Today travelers have another reason to do so inside Malpensa, where a new

Benetton store opened in Terminal 1 on March 7. Over an area of 120 square meters, the store offers customers an assortment dedicated to women and men, as well as bags and gift items.This latest opening is a continuation of Benetton's Travel Retail model, which in recent months has seen the curtains raised on three new airport locations: one in Milan Linate, the other two in Rome Fiumicino, including a 350 square meter store situated in a superb location at the Roman airport's new Terminal 3 for visitors coming from "non-Schengen" areas.

A new, 120-square meters store carrying women’s and men’s apparel as well as bags and gifts opened inside the Milan airport in March

BENETTON OPENS ALSO IN MALPENSA

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BRAND

HOME

Learning from the Future, held on March 6 and 7, was an event dedicated to Franchising 2.0, the new UCB model devoted to indirect channel

Two years on from the startup of the Franchising model, the company wanted to offer its partners an

occasion to meet and exchange ideas on future opportunities in terms of Franchising expansion and its competitive advantages. Learning from the Future was established to provide an opportunity to gain insights into the challenges of the future, stimulating our partners to understand market trends and customer profiles as well as to help them learn how to successfully match our product with the customer experience, so that – together with the shops themselves – they can make the difference. We spoke of this (and a lot more) on March 6 and 7 at the Benetton International Franchising Meeting, which was held at the headquarters in Castrette. Over 350 people attended, both Benetton franchisees and potential new partners from all over the world.

Discussion LabsThe goal of the “two days” dedicated

FRANCHISING: FUTURE AND OPPORTUNITIES

to indirect channel distribution – the backbone of Benetton's business – was to sum up the evolution of the Franchising model, which calls for greater integration between the company and its partners, and offers robust support for the franchisee, who is furnished with tools that favor business growth. In addition, there were exchanges on best practices with the parent company, and on the application of the retail model adopted at directly operated stores. It is an ambitious project being rolled out to all the main European markets and is already showing positive performance. This event confirms the Group's will to put its stores – and the resources dedicated to sales and partners – front and center of its growth strategies. During the event, our partners were engaged and stimulated by four labs: Sales, led by Marco Messini and Christian Prazzoli; Product, coordinated by Teri Naccarato; Communication & Marketing, organized by Gianluca Pastore; and People Strategy, led

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by Beppe Cavattoni and Gabriella Valentinotti.

A special soirée for our guests at the Monaco & Grand Canal As is often the case with work events, there was also time for leisure and a special “event within the event". On the evening of March 6 guests were treated to an exclusive visit to the “Teatro Ridotto” of Venice's Monaco & Grand Canal. For the occasion, the theater hosted iconic installations inspired by Benetton’s colors and knits, realized by the Visual Merchandising team. It was a strong signal that paid homage to our product.

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BRAND

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There are many ways to break away from the pack. For example, going beyond social conventions, diving head first

into a new project, or subverting the natural order of things while searching for new paths. It can be an attitude in one's work, but also a way of life (which may also be reflected – why not? – in clothing). This spring, “breaking ranks” is also one of the main trends of the Benetton collection. In Milan, on March 28, at the Contraste restaurant of renowned chef Matias Perdomo (who has already “loaned” his face to the Benetton 2013 campaign), the fashion influencers attending the special social dinner spoke precisely of this concept.

A DINNER OUTSIDE THE BOX

Free to create"Rompere le righe” (literally “breaking the lines”, the Italian translation for “breaking ranks”) is the trend that best describes the latest spring collection pieces: designed from the basic element of the stripe – embracing all of its possible manifestations, including the most unexpected – these pieces grant customers total mix and match freedom. In addition to being displayed inside the restaurant, where they were showcased during the social dinner, the garments were also sent as gifts along with invitations to the participants.

A lively chat with friendsThe evening, in fact, seemed more

PALERMO GETS A DENIM MAKEOVERSISLEY - LETTRES DE NIMES

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like an informal dinner among friends than a formal gathering of communications professionals. Each of the journalists, fashion influencers and food bloggers attending, was asked to tell what it meant to “break the lines” in either their professional or personal lives. The outcome was a potpourri of tales, ideas, projects, and suggestions that perfectly reflected the maverick spirit of the new UCB collection. Blogger Alessandra Airò led the evening, encouraging dialogue between the many diners, while chef Perdomo's dishes – he expressed what "rompere le righe" means to him through an ad hoc 8-course menu – contributed to the "gourmet" tone of the initiative.

In chef Perdomo's restaurant, some fashion influencers described how they have “broken ranks”, evoking the concept behind UCB’s collection

After Milan and Florence, Lettres de Nimes – the event dedicated to the "pop" customization of Sisley's denim garments – moved on to the Sicilian capital. The event was held Saturday, March 18 in the city's flagship Sisley store and attracted a large audience thanks to the participation of illustrator Marta Biasi, who has been dubbed "the Queen of the Sidewalk". Biasi is a hand lettering artist who uses colored chalk to draw on sidewalks, where her pop art lasts about a day or so. At the event held inside the Sisley store, Biasi gave a live performance by customizing some garments that had been chosen by customers.

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The new chief of product clearly believes that our brand's purpose is to make people happy, in fact, to bring joy

She joined the company just a few months ago, but Teri Naccarato has already perfectly

adjusted to her role. She strongly reminds us that the brand stands for joy, authenticity and optimism. «This is our identity and has been what differentiates us right from the beginning». While talking, she manages to jot down the five important "non negotiables" of the product strategy: «Color, knits, quality, fair prices and speed to innovation. These are the non negotiable standards of our assortment». Teri is a tsunami of ideas and concepts developed to reset and strengthen the business. Her strategy, she summarizes, is simply stated: to be Benetton again.

To start with, tell us about yourself and about what you did before landing here.«I was born and raised in Canada to an Italian family. My mother is from Rome and my father is from Sicily. Although I studied law, I received my true education in business at home:

from my father who is an architect I learned the importance of rationality and function in design, while from my mother, an established florist, I learned the hard lessons of creativity, business and delivering the bottom line. I spent many nights after school working on the books and on the accounting of the business. Whilst our business grew, I realized that this was my real calling, and so, after completing my degrees, I went down another path into a career in commerce».

The start of a career rich with successful growth and transformation experiences. Can you summarize your most successful experiences?«I must start with my beginnings at Hudson's Bay Company, now known as HBC, because that is where I was exposed to and trained in various elements of retailing, logistics, operations, product development and merchandising. Later on, I was invited to join Victoria's Secret in America in order to launch the new categories

of seamless, swim and accessories. At this crucial time in my career, I spent a lot of time in factories and even spent several months in Brescia to learn circular and seamless knitting. The learning during these years was intense and I was lucky to have had phenomenal teachers and mentors, many of whom are still influential in my life. From there, I spent long periods at Target Corporation, both in USA and in Australia, at Carrefour in France and in Spain, with Cotton On Group growing the Body brand across twelve countries and finally for the last three years at C&A based in Germany as the CMO. C&A, which was established 175 years ago, is Europe's third largest apparel retailer and conducts business in more than 15 countries worldwide including Brazil and China. Last Fall, whilst I was in Milan, I was invited to lunch by Marco Airoldi... and the rest is history. The lure of working with such a great brand and with such a dynamic team is strong, you just don't come across these opportunities everyday. It's a real honor to work here».

LET'S BE BENETTON AGAIN

TERI NACCARATO

VOICES

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purchase, then we'll be successful. For every single style, a designer should ask himself "will this make our customer feel good?". Only if the answer is yes, should the style go into the collection».

In what way can a product make someone feel good?«In so many ways. For customers, products and clothing in particular, fulfill many wants and needs. To some, the sheer texture of a material against the skin feels good, or the great rich color that enhances someone's skin tone and makes them feel more attractive; for others, it feels good to know the product will last a while and withstand normal wear and tear, for yet others,

VOICES

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What expectations did you have?«I have always been fascinated by the Benetton brand. In fact, more than once over the years I tried, rather unsuccessfully, to contact the company in the hopes of being considered for a position. So, you see, in many ways, this was the realization of a dream to be back here in Italy in the homeland of my husband and of my family, to be a part of one of the great transformation efforts in Italy. As you can see, this challenge is much more than a job to me...».

You spoke about your perception as a consumer: in your opinion, is Benetton's brand identity still in step with the times?«Absolutely! The brand United Colors of Benetton is still revered and loved by people all over the world. It stands for the unique spirit of Italy and it is somewhat of a national treasure. There is a lot of goodwill towards the brand and people want it to be successful. To this day, Benetton is associated with joy, color, freshness, irreverence and youthful energy. It's our mission now to return to a product offering that embodies this spirit by injecting it with a fresh approach to color, a new innovative take on our knitwear, a redo of our casual, familiar style. We've got a great brand, but now we must offer great product and engaging shopping experiences that live up to the brand».

It is both a simple and complex matter: how?«The answer is to have our standards again. To draw the line on what is Benetton and what it isn't. If it isn't done well, if it isn't simple but beautifully made, then we shouldn't do it at all. We were always different to the competitor and so now we must return to our unique position. In fact, if we stick to the five non negotiables and we focus on our key product families such as jersey, fleece, maglieria, outerwear and jeans, we will reconnect the casual product to the brand. If we remember, with each and every design that our purpose is to give joy by promising that the customer will feel good about her

On March 3 the Benetton Group Board of Directors, chaired by Francesco Gori, ratified the appointment of James McArthur as a

board member. McArthur has a strong background in fashion, having worked for several years in the fashion, luxury and retail sectors. He has served as chief

executive of several major retail and luxury companies, including Harrods, Balenciaga and Anya Hindmarch. He was also a fundamental part of the launch and development of Stella McCartney and Alexander McQueen within the Gucci Group, for which he served as Executive Vice President from 2000 to 2007. McArthur recently joined the Board of Destsky Mir, a Russian chain that controls approximately 25% of the children's products market in the Russian Federation.

JAMES McARTHUR JOINS THE BOARD

NEW APPOINTMENTS

it feels good to know the product was manufactured fairly and ethically. There are many ways the product makes the customer feel good, and that's how we give joy with products that make our customers feel good. I agree with Lucio Gomiero in the last issue of Knit in which he stated that the product and the store must find a new balance, a new exchange. But, in addition to that, it's even more essential to reconnect the product and the store to the most important person: the customer. If we all focus on giving joy by making our customer feel good in our products and in our stores, we will ourselves be once again the United Colors of Benetton. "Let's be Benetton again", precisely».

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PEOPLE

Performing UP: more colleagues getting involved

Performing UP is finally up to speed. The evaluation and feedback process for 2016 is now complete, and the

company is now preparing to extend

the process to 400 other colleagues. Overall 800 people will therefore become part of Performing UP in 2017. This is an important result, as the program promotes dialogue between

ON PEOPLE'S SIDE

The Benetton People Gallery – a new Intranet page devoted to photos and videos taken during corporate events – is now online.To access the gallery, simply click GALLERY on the home page. Inside you will find photos of the special events organised by our company: Benetton Christmas Balls, the Global Training and Development Town Hall 2016, the childhood happiness workshop "Educare i bambini alla felicità", the My Store training course, and

many more occasions that we have shared over the years. The Gallery is being continuously updated at the end of every month, so you can discover new initiatives, new colleagues, and new moments to remember.

THE BENETTON PEOPLE GALLERY IS HEREOur Intranet has a new section for photos and videos of corporate events

supervisors and staff members and is therefore beneficial for all employees. Cooperation is also increasing between Headquarters and our foreign operations with Performing UP is due to be launched in Korea and Turkey, two countries aiming to implement the process starting from this year. This is a major step towards the internationalisation of the human capital management processes. Among Performing UP’s more distinctive features is a competency model that helps us all to better understand ourselves and a Success Factors tool that is one of the most innovative in the world.

This is the spirit of the All in One HR Community, which last year launched the UP Strategy in all international offices to manage the growth potential of the DOS channel. UP is an integrated platform consisting of many programs for evaluating employees' potential and performance, as well as for individual training, and includes the I Love District Program.Poland is now kicking off I Love District, which is now consolidated for Italy area leaders. Ten District Managers will enter a training program focused on creating awareness of the role and the skill-set required to fulfill it with excellence! The training will be offered broadly – extended to other management layers and offices – and will work in harmony with the UP strategy, speaking a common language of growth: think global, act local.

THINK GLOBAL, ACT LOCAL!

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PEOPLE

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BENETTON EXPERIENCE FOR YOUNG KNITWEAR DESIGNERS

Benetton is strengthening its ties with the Creative Knitwear Master, the only higher education course in the world dedicated to knitwear, organised by the Accademia Costume & Moda (Fashion and Costume Academy) in Rome, in collaboration with Modateca Deanna.

On March 15, the twenty students from the course visited the Castrette Studios and the Seamless Knitwear area as part of

STUDENTS FROM THE CREATIVE KNITWEAR MASTER VISIT CASTRETTE

BOB IS COMINGIntroducing Benetton on Boarding, also known as BOB, a project dedicated to all our new colleagues, and anyone who wants to learn more about our company. But BOB is more than just a project. “He's” a tutor, a mentor that will guide new recruits and others through the process of getting better acquainted with our company and its past, present and future. You will be able to get to know BOB in just a few weeks time.

BENETTON ON BOARDING

a dedicated Benetton Experience. During the visit – which was based around the theme of Benetton's innovation in the world of knitwear – the students were able to see our company's advances and expertise for themselves.

Among the visiting students was Gabriela Braga, a promising young figure in the world of knitwear who, on March 14, presented her Capsule Collection to our Creative Management. Gabriela's talent has

won her the chance to see her collection brought to life, with the support of our Technical Product Management.

At only 25 years old, Gabriela has already created her own line of apparel in Brazil, her country of origin, and will be at Benetton from April to oversee all stages of the project. Gabriela's work will be presented in June at Pitti Immagine in Florence.

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IDENTITY

Ten years represent an important milestone, a moment to stop and review progress, goals that have

been reached and programs for the future. And ten are the birthday candles on the cake for the Ponzano Children Childhood Centre.

Cutting edge childhood educationThe structure, dedicated to children from 9 months to 6 years old, was founded by the Benetton Group, which committed to build an educational service that was focused on relationships, research and wellness of the child and the community. The center is characterized by its use of cutting pedagogical and architectural solutions. The latter were entrusted to the Spanish architect Alberto Campo Baeza, who created a container that is original in structural, functional and livable terms. Ponzano Children uses the famous "Reggio Emilia Approach", which is based on the participation of families, collaborative work, the importance of the educational environment, the in-house kitchen and the figure of the atelierista, a teacher with artistic competence.

A meeting place for the young and oldDuring its first ten years, Ponzano Children organized many activities and so far in 2017 there have been several opportunities for bringing people together, starting with the big party held on March 18 to celebrate the center’s important milestone. More than 800 people celebrated with the work group composed of teachers, atelieristas, cooks and auxiliary staff, with fun entertainment provided by the company "La tana dei tarli" and delicious breakfast foods prepared by the students of the M. Alberini Hotelier Institute in Lancenigo di Villorba. The event was made even more special with the presence of many children who have attended Ponzano Children over the past

years and who helped create the identity of the center, accepting the invitation to return to places that characterized their childhood and that still hold a special meaning for them. Some Indonesian female students and architects also visited the nursery school. The celebration was attended by the authorities, including Monia Bianchin, the mayor of Ponzano. The M. Alberini Hotelier Institute also participated, with all the students from the 3F class. The next event – addressed to adults and whose focus will be on healthy eating – will be held on Tuesday April 11 and feature the presentation "The beauty of fruits and vegetables," by Beppo Tonon, a famous "virtuoso" capable of transforming vegetables and fruits into beautiful artistic compositions.

HAPPY BIRTHDAYPONZANO CHILDREN!

Play Ponzano Children Early Childhood Centre working group

The Childhood Centre is celebrating its tenth birthday with a series of events dedicated to families

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IDENTITY

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THE FUTURE OF ARCHIVES IS DIGITAL

Once a year the Italian Association of Corporate Archivists [Gruppo Italiano Archivisti d'Impresa, GIAI] meets for a seminar to discuss the developments

in one field – the promotion of archives – that in the past few years has become ever more relevant to numerous companies. This year the venue chosen for the event, held March 8, was the Ansaldo Foundation in Genoa. Among the

ITALIAN ASSOCIATION OF CORPORATE ARCHIVISTS

Much progress has been made since ancient times, when

wool flakes were torn straight from the sheep's coat. Today, in most cases, the production chain follows rigorous procedures, in compliance with animal welfare principles and with particular attention to recycling and yarn quality. If this is possible, it is also thanks to groups like the International Wool Textile Organisation (IWTO), which, since 1930, has gathered the main representatives of the international textile industry, facilitated industry strategies and guaranteed production and sustainability standards. Benetton joined its ranks on March 30.Ours is a noteworthy addition to the IWTO: we are the first European

HEART OF WOOLON MARCH 30 BENETTON GROUP FORMALLY JOINED THE INTERNATIONAL WOOL TEXTILE ORGANISATION (IWTO), WHICH UNITES THE MAIN PLAYERS OF THE INDUSTRY TO GUARANTEE QUALITY AND ENVIRONMENTAL STANDARDS

fashion company to join as an associate member. Thanks to this decision, our dialogue with industry players will intensify, and Benetton Group will assume an even more

central role in the debate on key issues regarding wool production, with a particular regard to sustainability.

Social commitment in its DNAIWTO membership was ratified

March 30, in Ponzano, and was signed officially by CEO Marco Airoldi. «This is a further demonstration of the ethical approach of Benetton Group, a company for whom social

commitment, care for the environment, a well-monitored supply chain and transparency for the consumer are the core values of a model of responsibility that goes beyond its own commercial objectives», Airoldi said. Piercarlo Zedda, IWTO vice-chairman, was also at the ceremony, and he

described the Treviso company's participation in the organisation as "an honour". Benetton will make its IWTO debut at the next annual conference, taking place May 3-5 in Harrogate, in the UK.

SUSTAINABILITY

speakers at the conference, titled “Archive Project: Transforming an Idea into Reality”, were archivists from the Benetton Group, who presented digitalization projects

for works on paper and supporting videos created within the company.GIAI is a professional association that was founded in 2014 to bring together those who work to safeguard and study corporate documents in order to create a network to share experiences.

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PERISCOPE

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THE SECRET OF OUR SUCCESSA talk with two store

managers: fromTurkey to Poland,

the voice ofour colleagues

How long have youbeen workingfor Benetton?

Tell us what you seeout of your store now

Which is your favouriteitem of clothing?

And the best sellerin this period?

What is your secretwhen you talkto a customer?

What would you liketo tell to your colleague

in this page?

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PAULINA PARCZEWSKA Store manager - Poznan

DERYA TOSUN Store manager - Istanbul

1 We are at Palladium mall, also called "the living sphere". From here I can see a lively atmosphere full of colors that announces spring.

2 I have been working with Benetton for ten years, two of them as a franchisee. This is my second store and it is like a home to me: I feel that the company always listens to my ideas.

3 In this season, I prefer our products with color blocks, especially pink, purple and orange. Our best sellers are our basic polo T-shirts and our flowered blouses.

4 I always try to understand the needs of our customers by asking the right questions, listening carefully, making eye contact and creating an atmosphere of trust.

5 As Benetton Turkey, I hope to meet you one day and experience together the joy of working for the same brand!

1 I see multigenerational families, stylish ladies and extravagant teenagers. The store is located in the largest shopping mall in Poznan. Our customers are very varied.

2 I have worked here six colorful years, starting as a sales assistant. It's thanks to all the amazing people I have met that I have my current position.

3 My favorite is the TV-31100 sweater, the right mix of innovation and history. And what’s most important, it’s perfect for a summer walk. We all need a bit of freshness, that's why customers choose shirts in lively colors or with flower prints.

4 Smile and be honest. With a friendly, optimistic attitude you’re not only selling, you’re building amazing relationships.

5 Working as a team and being part of a team gives us the power to achieve more. This is the secret to success.

I WANT TO BE FREE

A simple and easy-to-wear sweater to be worn alone or over a T-shirt or shirt, playing with contrasts. Available in various colors, it’s a must have of the season.

CLOTHES

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Everything coincides, today like yesterday: the basic color, the kimono sleeve, the fisherman’s rib stitch, the horizontal ribs pattern.

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ABOUT

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Top model Helena Christensen wears a Benetton T-shirt on the cover of the March issue of Marie Claire Likes.

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Have a look at the best UCB and Sisley fashion editorials:page 1 page 2