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1. History of UCB 2. UCB in India 3. Operations in UCB
3.1 Administration & Security 3.2 Customer Service 3.3 Sales & Collection Management

4. 5. 6. 7. 8.

Schemes & Discounting Inventory Management Merchandising Visual Merchandising Management Conclusion

• • • • • Type: Public (BIT: BEN) Industry: Fashion Founded: 1965 Headquarter: Ponzano Veneto, Italy Key People: Luciano Benetton, Chairman Carlo Benetton, Deputy Chairman Alessandro Benetton, Executive Deputy Chairman Franco Furnò & Biagio Chiarolanza, delegating operative management of company Guiliana Benetton, Director Gilberto Benetton, Director Product: Clothing, Accessories & Footwear Revenue: 2,049 million euro (2009) Employee: 9,511 (2009) Website:

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About Benetton
• • • • • • • • • • Global fashion brand, based in Treviso, Italy Name comes from Benetton family Listed in Milan (BT: BEN), Frankfurt & New York Network of around 6000 stores in 120 countries Stores are managed by independent partners Generate a total turnover of 2 billion euro Core business is clothing lines Casual clothing marketed as “United Colors of Benetton” Fashion oriented “Sisley” division, “Playlife” leisure wear & “Killer loop” Products include womenswear, menswear, childerenswear & undergarments “Under Colors of Benetton” • Expanded into toiletries, perfumes, watches, kitchen accessories & baby products

UCB in India
• • • • • • • • UCB operates under the name Benetton India Private limited Mode of presence in India: 100% subsidiary at present Year of entry: 1991-92 Key business: Apparels & Accessories retail Around 170 stores in India & 45 cities Entered in joint venture 50:50 with DCM Retail network is mixed of owned & franchised stores Manufacturing unit at Gurgaon (Haryana) where almost 50% of garments required for Indian stores are manufactured • The remaining sourcing for the Indian market happens through contract manufacturing from Ludhiana, Delhi, Bengalore, Chennai, Nepal & Benetton International

UCB in India
• The designs are selected from the global collection created by the product design & development team based in Italy • More than 300 direct employees & indirect employees in excess of 5000 • First outlet opened in Delhi nearly 3,500 sq.ft. in size, with collection for men & women • In initial years of operations as a joint venture, UCB faced a few hiccups related to the quality of products & uncoordinated merchandising • Also faced an identity crisis of sorts as it was viewed largely as a T-shirt brand • Today it has put the past behind & has established itself as fashionable wardrobe brand

Operations in UCB
• 3.1 Administration & Security  Critical staff strength is maintained  Authorized personnel opens & closes store  Store Manager on monthly basis draws out a weekly rostering of employees. Such as: a) Schedule is in alignment with the critical staff strength b) Sufficient manpower is available on weekends & peak hours c) Weekly off is allowed to employees  Store opening & closing register is maintained  All systems in the premises are in working condition before the store opens to customer  Merchandise is properly placed in the designated sections

Operations in UCB
• • • • • • • • • Merchandising is displayed as per visual merchandising plan Adequate stocks are available at the shop floor & are appropriately tagged Shelves are optimally stocked as per the planogram SKUs have been placed on the relevant shelves Barcodes have been posted on the products Schemes are appropriately highlighted on the relevant shelves Computers, printers & EDCs are in working condition Adequacy of stationary items at POS counter Store manager conducts opening meeting with FCs  Previous day’s sales figures, conversion rate, walk-in’s, average ticket size, current day’s target, schemes & promotion, challenges for FCs, customer complain, low & best seller & action plan to boost sale, encourage the team, inventory position, any other specific issue….

Operations in UCB
• 3.2 Customer Service  To make the customer feel welcome & comfortable about the store  To ensure that security compliances are met by the customer entering the store  To record the footfall & ascertain conversion in the rate  Every customer should be greeted with a smile  In case the customer asks for the location of a product, to lead & take them to the product rather than pointing him towards right direction  In case customer does not find the merchandise he/she is looking for then FC takes down his/her requirements & call up the customer within 48 hours, to inform the customer about the availability  Customer complaints redressal like, shop-floor complaint, product related complaint, behavioral issues etc…

Operations in UCB
 In case of merchandise return, to provide the customer return facility while ensuring compliances to the exchange policy of the company  To institute controls over receipt & management of customer defectives • 3.3 Sales & Collection Management  Billing process: a) To bill the goods purchased by the customer in a smooth & efficient manner b) To ensure that the items on POS are in working condition or available like, calculator, EDC machine, POS machine, pen, stapler, carry bags, customer feed-back forms, De-taggers to remove security tags etc… c) Mode of payment: Cash, Credit/Debit Card d) Each store is assigned store-code e) Using ETP software

Schemes & Discount
• • • • • Scheme & Discounting policy is decided in HQ Marketing Department handles the responsibility Schemes & Discounts vary in each season Visible at each store To ensure timely activation of promotion & free gifts in order to benefit the customer • Distribution of free gifts through cashiers • Any scheme/discount are informed to the Store Manager minimum 3 days in advance • Responsibility & accountability of execution, tracking & compliance of all promotions lies with the Store Manager

Inventory Management
• Each store has given budget • ASM decides the stock level of particular store, according to the potential of store • Have 3 types of category: a) Key Style: This style is launched once only, is not repeated again b) Flash Style: Loud, jazzy with block prints c) Regular Style: 1) Basic: T-shirts & denims used in uniforms etc… 2) Core Style: Part of basic style, repeated regularly on each season with minor changes in colors & designs • Ware house : Regional Ware house, located in Gurgaon, Bangalore & Kolkatta • For Ahmedabad warehouse at Gurgaon

• Flexible & adaptable merchandising strategy • Merchandise mix varies from location to location to connect with the local taste & preferences • Focus on womenswear & kidswear help to yield better performance • Merchandising done by buyer team of franchisee • Key factors affecting merchandising : budget, fashion, potential

Visual Merchandising
• • • • • • • • • • Silent seller of product To communicate with customers through signage & layout To create a similar store experience for customers across all stores Store planogram is designed by VM team, sales team & external agency (if hired) The products placed in the appropriate pre-assigned shelf as per the store planogram Maximum no. of garments are staked on shelves as per planogram Garments are displayed with use of C-bars, front hangings, Gandolas, tables & mannequincies Hanging display : 1) front hanging , 2) side hanging Layer display Focused light on garments

Visual Merchandising
• Styles are displayed according to layout, maximum 6 units in a pile according to sizes • Styles are displayed through posters of models • Models with black & white skin complexion • Reason behind using the models with black & white complexion is to eliminate the difference between races & give same importance to everyone & treat them equally • Ratio of stock : 40% womenswear, 40% menswear & 20% kidswear • Range of product : Rs. 399 to Rs.7999

Some more information
• • • • • Franchisee for Gujarat & Mumbai : Saffron Life Style Traders Pvt. Ltd. Punch line : IT’S MY TIME Type of store : Flagship Store Area :6800 sq. ft. Staff force:  1000 sq. ft. – 2 FCs + 1 FM  6800 sq. ft. – 8 FCs 2 AM/FM + 1 SM • Stores in Ahmedabad :  1 Flagship Store – C G Road (Family Store)  1 Excluxive Kids Store – Gulmohar Park  1 Exclusive Store – Iscon Mall  1 Exclusive Kids Store – Iscon Mall  1 Factory Outlet – Himalaya Mall

Though the development of its stylish collection is done in Europe, the company’s designers travel around world collecting ideas and putting them together in order to create a collection that is acceptable to all market. Significant care is taken to look into individual markets and introduce style that will suit the requirements of these markets. Uniformity and wide range of collection has made UCB a leading brand in fashion world. UCB has endeavored to give its customers international experience, ambience & fixtures of its retail outlets.