Benetton Franchise Management Problems
Posted: Sat Apr 19, 2025 9:34 am
Another significant problem concerns the management of franchising . The contracts offered to franchisees were often too rigid, with obligations to restock even in the absence of concrete demand. This approach, combined with decisions imposed from above and the perception of the affiliates as “ATMs” rather than partners, has eroded the relationship of trust and generated widespread dissatisfaction.
In essence, poor management of the franchise network rich people data contributed to a progressive loss of franchisees , further damaging the brand image.
The Challenge of Fast Fashion
Meanwhile, the rise of giants like Zara, H&M and Primark has drastically changed the rules of the game. These brands have introduced frequent collections at competitive prices , supported by unbeatable production speed. Benetton, positioned in a mid-market segment, has not been able to adapt to this new dynamic and has found itself at a disadvantage in the face of the winning fast fashion model.
In essence, poor management of the franchise network rich people data contributed to a progressive loss of franchisees , further damaging the brand image.
The Challenge of Fast Fashion
Meanwhile, the rise of giants like Zara, H&M and Primark has drastically changed the rules of the game. These brands have introduced frequent collections at competitive prices , supported by unbeatable production speed. Benetton, positioned in a mid-market segment, has not been able to adapt to this new dynamic and has found itself at a disadvantage in the face of the winning fast fashion model.