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United Colors of Benetton: From Sweaters to Success: An Examination of the Triumphs and

Controversies of a Multinational Clothing Company


Author(s): Mark J. Barela
Source: Journal of International Marketing, Vol. 11, No. 4 (2003), pp. 113-128
Published by: American Marketing Association
Stable URL: http://www.jstor.org/stable/25048955
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Executive
Insights:
Sweaters to Success:
United Colors of Benetton?From
An Examination
of the Triumphs and Controversies
of a Multinational
Clothing Company
as a leader

Often

regarded
United
dustry,

marketing
lenge of effectively
and religious
borders.
Changes

demands

have required

manufacturer
tive
in the
issue-themed
have

paigns

retail

and

growing

continues

the Italian company

to redevelop

its

to remain

in order

processes
market.
Renowned

competi
social
using
for
cam
its brand, Benetton's
ethical
and
concerns,
legal

to promote
in increasing

pictures
resulted

ABSTRACT

in
marketing
to face
the chal
across
clothes
cultural,
racial,
in market
trends and consumer

in the multinational

of Benetton

Colors

and world courts have now been asked to define further the line
artistic

between
cusses

The

and exploitation.
expression
action
taken against Benetton

the legal

ers that claim that the explicit advertisements


sales. The author reviews
different
fewer
Benetton's
with
respect
campaigns
unique

politics

dis

author

own
by its

retail

have resulted in

consumer

to
responses
in global
to changes

and more frequent acts of terrorism. The author offers


as

suggestions
can better

to how

reach

Benetton's

unique

strategies

advertising

market.

the modern

Shortly after the end of World War II, Luciano Benetton, a


young man at the time, left school after his father's death to
support his family by producing colorful wool sweaters for
people who were tired of wearing dull colors [Warsaw Busi
ness Journal 2002). Within eight years, Benetton built a fac
tory that had sold more than 20,000 sweaters to fashionable
The

shops.

new

to France,

Italy

headquarters

soon

company

and

Germany,

in Treviso,

from

in

the world

largest
family-owned
success
has been and
of
Benetton's
Much
2002).
(Ivey
ues to be credited
to several
First are Benetton's
factors.
vative

postponing
cisions

about

garment dyeing
colors

is the network

large network
is the network
Third
tories.
in which

distributes
which
The

Benetton,

its products

is responsible
does
company

censing

reflect

market

for manufacturing.
organization
that supply
of subcontractors

process

for as long as possible

can better

agreements

not
with

contin
inno
involve

which

techniques,

operation-management

so that de

trends.
This

Second
includes

Benetton's

for distribution,
organization
a franchisor,
as
sells
acting

through

is

Colors of Benetton

businesses

regional

agents,

fac
a
and

each of

a certain
area.
for developing
market
own the stores but rather arranges
li
agents

that

then

J. Barela

later, with

Decades

Belgium.

Italy, United

the

among

its market

expanded

Mark

sell Benetton

prod

Submitted
Accepted

February 2003
June 2003

? Journal of International
Marketing
Vol. 11, No. 4, 2003, pp. 113-128
ISSN 1069-031X

113
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ucts (Camuffo, Pietro, and Vinelli 2001). By combining fash


a product mix
ion with industry, Benetton has developed
success
in
that has achieved great
Europe and Asia and has
become aworthy competitor in North and South America. As
a company that is attempting
to reform the distribution
process and develop each market segment individually
by
retail
selling
also requires

to investors

licenses
an

unique

equally

pete in the highly


light of Benetton's

around

has

introduced

created

peace,

that

photographs
sex organs
dia.

feature

continue

Benetton

as

such

reality,
and AIDS

lives;

Toscani's

controversial,
as human
images
suffering
the attention
of the world

such

to grasp

to marketing

approach

customers
societies

wide-open"

an

with

from

has

approach

of the many
to continent.

been

met

awareness

The

issues

that

This

"eyes
emotions,

extreme

with

the Benetton

and people have both praised and damned


vertisements.

techniques

idea

continent

and
me

its products,

has strayed from traditional marketing

to provide

the

Journal 2002). Although

considered

this unique

By using

plague

are

often

advertisements

Toscani.

quarterly
publication,
aware
and provoked

on themes
focusing
and
humanities,
cultures,

and safe sex [Warsaw Business

to a se

the world

by Oliviero

issues,

and war;

to com

strategy

marketing

in Benetton's
photographs
have
conscience
stirred human

Colors,
ness
of critical

Benetton

saturated clothing industry. In the spot


is its distinctive
worldwide
expansion

which
marketing
approach,
ries of advertising
campaigns
Toscani's

the world,

ad

to por
multiethnic

Toscani

desired

global
in
creation
form
of
the
has
taken
tray
advertisements
that depict
different
cultures,
religions,

and

lifestyles. Among the most highly notorious of Benetton's


campaigns is that which featured pictures of and editorials
U.S.

from
the

row

death

campaign

punishment
policy,
a U.S.
law
cruited
for inmate

prisons
ness,
legal,

and

between

professor
interviews.

have
and
This

ramifications

ethical

advertising

a company
and
tracting,

As

Colors of
A Global
Success

objective
he may

Although
discussion
gone

Toscani

that

and

presented
U.S.
capital
far when
he re

about
too

to solicit
state
journalist
the busi
article discusses
of Benetton's

and their influence on further defining

ments

Unique
Benetton:

inmates.

as an

advertise

the boundaries

exploitation.

is based

on

subcon
outsourcing,
a
com
between
developed
large
relationships
and
and
small
several
distributors,
pany
producers
an
success
Benetton's
for multinational
has become
example
largely

businesses
around the world
(Camuffo, Pietro, and Vinelli
to
maximize
Benetton's
2001).
profit and tominimize
ability
a
in
its
role
foundation and is dis
has
expenses
large
played
relationship, in which
tinctly visible in its licensor-licensee
the retail market is not served directly by the company but by
investors
their

who

stores.

the right to sell Benetton


purchased
is a "pure
In this model,
Benetton

114 Mark
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items
manufac

J. Barela

in

and use of the Benetton


turer," providing
only clothes
to franchisees.
The gap between
the parent
company
return
in the company's
is even more
tailers
visible
which

to request

customers

requires

directly from the individual


sale

2002).

(Ivey

refunds

and

retailer that made


Benetton's

Similarly,

focus

name
re

and
policy,

exchanges

the original

on

an

creating

integrated relationship between the parent company and its


licensees is further reflected in its efforts to speak personally
consumer

to each

using pictures

Benetton's

the world,
intimate

the

through

of social

that are familiar

issues

advertisements

connection

with

all

appear

consumers,
or culture,

ethnic

language,
background,
a medium
that transcends
national
distribution

Benetton

method,

advertisements.

company

company's

family

the
family,
communication

to develop
teams,
macy

management

Because

supports).

of the Benetton

by members

their various

by organizing
or

To better

"families."

classes,
that is achieved

the

increasing
constructed

to understand

company
trolled by seven
mercial
director,

number

attempt

into

departments
unique

the

of independent
of 83 agents,

inti

marketing

the benefits
between

relationship

a network

intimate

understand

Benetton's

through

the close,
internal
through
its
and
retailers.
pany
serve

a sense

sector (an effort the

can more
sustain
the
company
easily
U.S.
network
that many
companies

plan, it first is worthwhile

To

through
its
does

to incorporate

strongly

is largely managed

of their

regardless

strives

an

to establish

by speaking
As
boundaries.

of familiarity and family in each business


Benetton

By

throughout

gained

the

com

the
retailers,
are con
which

area managers
com
who
report to Benetton's
on
in turn offers
who
guidance
product
stores
to
and the location
of new
merchandising,

selection,
owners
store
lowed

and

(Pinson

and

and

labor

ensures

that

Tibrewala

Benetton's

are

policies

fol

resources

1996).

By focusing
talent on product
and dis
company
design,
production,
Benetton
took advantage
of economies
of scale and
tribution,
even
economic
maintained
worldwide
strong growth,
during
manu
structure
recessions.
This
has helped
lower Benetton's
and

facturing

costs

and

thereby

has

reduced

company

risk (by shifting potential market failure to suppliers) and has


provided unparalleled production flexibility. By placing this
on its retailers,
a
Benetton
has become
large responsibility
to de
true "parent"
in that it expects
store
each
company,
to of
Benetton
its
market
continues
while
successfully
velop
fer marketing

of publicity
tablished

sorship
creased

United

by

experimenting

and diversifying

nonclothing

As Benetton
targeted

support

began

its products

with

new

methods

by purchasing

es

companies.

to grow, it developed

new market

For

new products

and

Benetton's

spon
segments.
example,
1 race car, which
has since been
sold, in
In addition,
the
worldwide
company's
visibility.

of a Formula
the

Colors

of Benetton

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All use subject to JSTOR Terms and Conditions

of companies
such as Playlife, Killer Loop,
acquisition
Rollerblade, Prince, and N?rdica helped Benetton achieve its
goal of being more than just a clothing company. Although the
Benetton clothing line accounted for the majority
(74%) of
revenue,

into new

expansion

markets

has

redefine

helped

image (Camuffo, Pietro, and Vinelli

company's

Benetton's

Although

itwas

ties for growth,

the

2001).

diversification

provided new opportuni

soon

that for Benetton

apparent

to remain

competitive among its giant competitors, including Gap (United


States) and Zara (Spain), the manufacture-only model that saw
Benetton sign up more than 7000 franchisees worldwide
(Ivey
2002) needed some changes, including creation of a distinctive
marketing

to meet

campaign

the needs

of modern

markets.

new movement
toward warehouse
industry's
as Wal-Mart,
consumer
such
expectations
now
demand
that stores
and consumers

the
Following
retailers,
style
have
changed,

be

since has moved away


big, bright, and friendly. Benetton
from its traditional boutique stores and toward establishing
(Ivey 2002). The company also decided to
larger megastores
reduce its international product customization by differenti
ating only 5% to 10% of the styles offered in each collection
(Camuffo, Pietro, and Vinelli 2001). In 2000, eliminating spe
cific labels targeted toward babies, children, and expectant
Benetton

mothers,

streamlined

and

its brands

ments under the United Colors of Benetton


(Camuffo,

and

Pietro,

Vinelli

2001).

abled the company to focus more


core competencies by specializing
tion

all

without

its gar

and Sisley brands


en

streamlining

efficiently on developing
in the design and produc

a need
and it further
created
products,
to promote
Benetton
the remaining

of fewer

vertisements

effectively

The

sold

detrimentally

for ad
items

the drastic

disclosing

in product
the prod
For example,
before
changes
offerings.
a wide
va
a Benetton
uct changes,
have
shown
catalog might
a
after the product
cuts,
riety of items, whereas
catalog might
a
a re
cause
sense
of
or,
worse,
appear
empty
unfamiliarity,
focus on consumer
and
company's
To maintain
its strong customer
perception
diversity.
product
to
outsource
Benetton
of superior
continued
only
quality,
of production
and trusted
labor-intensive
any strate
phases
sult

gic

to the

contradictory

activities

and

that

operations

required

heavy

investment

to in-house departments (Camuffo, Pietro, and Vinelli 2001).


Perhaps the biggest change Benetton has decided to pursue
success
its global
stores
(Ivey 2002).

in maintaining

rectly
operated
tion strategy
relies
to
closer
consumers;
tion

of traditional

continuing
additional
world.

is its movement

into

di

new
Benetton's
competi
the
company
parent
becoming
largely
this involves
the dissolu
specifically,
on

investor-owned

To achieve

channels.

retail

growth and profitability, Benetton has established


stores in prime retail locations throughout the

Because

the expense

involved

in such

a project

Mark

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is no

J. Barela

it was unlikely

less than extreme,


would

ton decided
move

from

deviation

sharp
role and

licensor

investors

that individual

the necessary

so Benet

capital,

to enter the retail store business

marked

tional
out

to provide

be willing

(Ivey 2002). This

the

tradi

company's

required
significant
changes
through
to its consumer
As
including
marketing.
to
internal
infrastructure
the
began
change,
to coordinate
brand needed
the transformations

the

company,
Benetton's
entire
well-known
into

its advertising

of the company
The
and

properly

could

practicality
ton's ability

photographer

as his media,

style. Toscani

clothing

advertising

into

from

recognition

to use print and

decision
advertising
because
ad
television

Benetton

budgets,

Ad Campaigns

cost retailers up to 62% of

have

historically

Controversial

hired Oliviero

chose

less-than-ordinary
In addition,
company.

vertisements
their

earned

had

shirts

Toscani's

an
company
sought
the rules of traditional

1993, p. 52). Benetton


who

of art

and
color,
style,
Luciano
Benet
out

signifiers,"
who
respected

his edgy photography


poster
for a

integration

the

(DiMateo

marketing
Toscani,

a meshing

of

expressed.
Maintaining
to transform
"sweaters
into messages,

jeans
an advertiser

not

cam

multiethnic

worldwide,

be

into

and

signs,
artist,

distinctive

component

the others.

a forum in which

strategy required

Benetton's

that each

complemented

of a proposed

achievement

paign

to ensure

campaigns

to pro

refused

initially

mote itself on television; it later agreed to do so only on spe


cific networks outside of Italy, such as MTV (United States),
which

often

posters

placed

no

showed
on

more

a street

horns in the background

(DiMateo

strategy

was

what

basic

often

he

of Benetton

of car engines

the noise

with

At the heart of Toscani's

a series

than

and

1993).
and marketing

advertising

to as a "communications

referred

strategy" based on the diversity-focused


slogan integrated
into the United Colors of Benetton campaigns. With this
of unification,

theme
into

"news,"

teo

1993).
the
world,

kets
peal

costs,

high

Benetton's

Toscani

share

humans

Benetton,
wide
social

were

clothes

company
Toscani's

to bring
attempted
a
advertisement
single

many

clothing
issues.

Although many people

United

to current

advertising
events
(Di Ma
sold around
the
to specific
reduce

To

the world's

mar

that would
ap
by using
The
and
races,
cultures,
lifestyles.
religions,
to reach people's
to invoke
of con
discussion
souls,
to the awareness
all societies
and to bring
topics,

together
to many

was
goal
troversial
that

paying
Because

to transform

chose

attention

to tailor campaigns
incurred
expenses
enormous.
markets
would
have
been

national
these

Toscani
close

used
ability

Colors

concerns

similar
can

company,

considered

offer

support

that

even

to world

it awkward that a clothing


issues

humanitarian

and

to present

devastating

of Benetton

117

to
and

itself,
promote
events
in
critical

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as

such

ways,

unprecedented

an

photographing

organized

or the death of an AIDS patient, succeeded in


their beliefs
capturing people's attention and challenging
and ethical values (Rich 1998). Because Toscani's approach
crime murder

to arousing

consciousness

public

it is difficult

views,

to determine

the

that

brand.

contentious

Benetton
purchasing
the unique
advertisements
However
obscure
equality.
sive

20

have

consumers

deterred

others

have

them
praised
of racial

that

messages
promote
the world's
view
is of the

when

Toscani

times

re

mixed

Some

have

images
but
products,

from

advertisements,
sales were
pany's

received

how his photographs

the Benetton

affected

retrospectively
have
stated

has

left Benetton,
than they were

greater

exclu

the

com

when

he

arrived (Lyman 2001).


As

The World's
Toscani's

Response

Advertisements

to

Toscani

responses
even
ments
tailers
and

to present

continued
varied

consumers'
campaigns,
to
The
advertise
country.
country
re
Benetton's
of
among
feelings
hostility
the advertisements
sales
had decreased

created

that believed
that

"Mr. Benetton

claimed

and Tibrewala

spired

him

values
by

(Diaz

to reach consumers

attempted
that are often

disregarded
about
discussion

stimulating

included

campaigns

newborn
woman

scenes

such

a white

breast-feeding

advertisements

extreme

issues.
death

These

indiscreetness.

Benetton
adverse

retailers

that

accused

in consumers

reaction

inmates,

and a black

images

spurred the creation of activist groups that despised


vertisements'

and

Toscani's

row

cord attached,
infant.

the

by challenging

in retail
as U.S.

its umbilical

baby with

(Pinson

Toscani was criticized

he stated
that the is
products,
advertisements
in
genuinely
consumer
the
audience,
capture

To

2000).

to nobody"

listens

1996, p. 557). Although

to promote
for using
politics
sues he chose
for the Benetton

Toscani

his

from

quickly

the ad

were
the protestors
Among
the company
of "provoking
a con
their
ads, with
through
and Tibrewala
1996, p. 558).

in sales"
(Pinson
sequent
drop
These
from
the world
market
also spurred
responses
negative
to
the establishment
in
of pro-Benetton
groups
Germany

"fight the discredit done to Benetton by disgruntled


(Pinson and Tibrewala 1996, p. 558).
Because

retailers"

the

for acceptable
advertisements
vary
guidelines
were
in
the
Benetton's
world,
throughout
campaigns
praised
some countries
a
in others.
and damned
For example,
photo

graph of a priest and a nun kissing did not produce the ex


treme outcry in the United States as it did in Vatican City. The
cultural
sponses
that what

perceptions
in global

of these
consumer

photographs
markets.
The

in one

is acceptable

society

may

created

diverse

traditional
not

be

re

notion
acceptable

in another is helpful in explaining why campaigns that ex


ceed the limits of traditional advertising are liked by some
people
caused

and

disliked

market

by

others.

controversy,

Even

though

Toscani's

some

attempt

campaigns
to integrate

118 Mark

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J. Barela

art also

into his
concepts
in the art industry,
which

world

ever
spiring
thing
on universal
focus
and
cultures,
able standards,

regarded

p. 8). Benetton's
different
races,

2002,

(Buonaguidi
that
campaigns

lifestyles,
has become

recognition
as "the most
in

his work

seen"

represent
to accept
in direct
opposition
a concept
that
used by companies

often

a common,

to maintain

choose

Benetton

earned

worldwide

exam

For

image.

images of scantily
ple, today formerly culturally unacceptable
dressed models line the walls of airports and billboards in so
countries

conservative

cially

a center

munication

designed

many

aspects
subject matter
he achieves
the way

"explicit
to grab attention

in part

range
advertisements.
opposed
promote
Benetton

its clothes.
further
declaring
sales" but

use

become

have

Much

ability
an

consumers

and

of Toscani's

his ability

of
only
hearts
issues

qualify

disapproval,
its advertise
to "increase
to the
and

of the Benetton

been

faced by many

problems

the

through

extreme
to conjure
human
of creativity
recognized
worldwide.
has

to

suffering

as a "science

icon

success

strongly

speak
states

emotional

1993, p. 54). Because

campaign

to merge

are

images
to consumer

people's
such
because

in
to the

reactions

consumers

to reach

provided
focused
on,

is evidenced

local

the purpose
emphasized
not
that its intent was
also

issues

of human

of

In response

of the heart" (DiMateo


they
keters

and

of advertising;
a
of
representation
through
the photos
should
automatically

advertisements'

this method,
have

which

of national,
regional,
For example,
many

to Benetton's

public
scenes,

of the

perception
cultural
differences,

on

also

advertisements

in consumer

the vast

creativity

his

do not

advertisements

(Rich 1998, p. 175). Using

controversial

variations

ments,
sweater

to develop

a subject;
set
they simply
and confront
consider
people

and make

their own views"

based

The

his message.
about

statements

Toscani's

specifically

com

the

with

news
to accompany
editorials
by including
one of
focus
reflects
This
editorial-advertising
the
It
not
is
of Benetton's
merely
promotions:
on
but also
focus
advertisements
that Toscani's

the pictures.

out

of

the establishment

he continued

goals of Benetton,

advertisements

make

to deal

Iran.

and

Turkey

furthered his projects with

As Toscani
Fabrica,

as

such

emotions,
mar
by

attributed

people

to

into a

be
for his messages
The forum
recognizable
package.
single,
a
came Colors,
that addresses
magazine
publication
quarterly
is a company-sponsored
issues.
Colors
humanitarian
medium
as AIDS,

Universal
Colors
of Benetton

such
worldwide
and discusses
that presents
issues,
use
of dif
of models
Toscani's
and hunger.
poverty,

ferent ethnicities in his photographs further supports his de


in one
faced by citizens
sire to show that the hardships
country
tempts

also

exist

to dissolve

in the

the economic,

riers that exist throughout


United

Colors

lives

of Benetton

of others.
political,

This
and

method

at

religious

bar

the world.

119

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Benetton's

or

universality,

can be

problems
to depict

scenes

an

and

to have

advertisements

Israeli,

appear
environment

an

localized.

common

assertive

The

a type

achieved

in which

of

global
uses

Toscani

imagery
of recognizable
such as a German
"enemies,"
a Greek
a
an
and
and a
and
Turk,
Argentine

audi
Briton, has further captured the attention of worldwide
ences (Pinson and Tibrewala 1996). Benetton's campaigns did
not

include

models

advertisements
the

wearing

rather,

they

the

issues

cent

showed

that people

attractive"

"carefree,

garments;
bright-colored
a sense of
for the
ownership

company's
to invoke

attempted

social problems

that

face around the world. Whether

are of a
or a
re
context,
religious
political
Benetton's
advertisements
reflect
blatantly

reviewed

or historical,

the conflicts in the world. Today, these conflicts might include


the more frequent racial injustices in the United States that
have resulted from the September 11 terrorist attacks and the
a traditional
war.
Because
U.S.-Iraq
layout
same
race
not have
of the
the
likely would

subsequent
used models
on

impact

such
presenting
method
appears

"shocking"

hold

of the problems
who

people
has been

able

to avoid
or two

uniform

Although

of consumers

the world

in its promotions.

groups

ad campaigns
a certain

Benetton

images
its

achieved

breaking down barriers, and stir

this

by avoiding

often depict Utopian

product,

the world,

the

a result, Benetton
retailer
stereotype

As

face-to-face.

in grasping

and bringing

the all-too-common

ethnic

using

focus of unifying
ring debate

them

confront

one

of using

around

Toscani's

troubles,
essential

widespread
to have been

that
same

standard

au

Toscani's

approach.

of management's
thority to work independently
controlling
eye enabled him to break away from the secure democracy of
establishments

organizational

credible"

(Rich 1998, p. 177). With

need

for management
and what
disregarded
on pure

ity based

to "produce

and

of the

were
productions
a raw vision
of human

traditional

approval,
remained

emotion

in

something

the elimination

was

and

instinct.

The

commonness

is a result of both the similar


achieved through the messages
ities and the disparities
that exist among world cultures,
which together hold amelting pot of different views.
Benetton's

Although

advertisements

have

received

positive

recent
the world,
social
more
to become
sensitive

may
problems
to the unique
the company
require
a more
to develop
of market
characteristics
cultures
and
For example,
advertisements
presentation.
culture-friendly
current
and/or
(i.e., the
addressing
religious
political
disputes
recognition

throughout

conflict between
mosity

ability
historical

the United

in multiple

to broadcast

States and Iraq)may


because

markets

images around

differences

among

countries,

there

are

the world

increasing

coupled with

cultures.

conflicting

such events can lead to a heightened


certain

of the media's

create ani

Because

sense of patriotism

consumers

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All use subject to JSTOR Terms and Conditions

who

in

might

view

Mark

J. Barela

the

as direct

advertisements
cause

cultural

criticism.

market

includes

consumer

Benetton's

In addition,
and
religious

be
eth

nic groups that historically have opposed one another, itmay


be difficult to create a promotion
that remains effective in
each

is an example
of how
approach
an advocate
become
for discussions

Benetton's

segment.

can

company
clothing
creative
about
ethics
marketing
by using
to realize
multinational
companies
begin
ethnicities

for their

on

will
ones

strategies
across
ethnic,

have

focused
and

linguistic,

Benetton
decided
effectiveness,
to
enter
and
the
unfamiliar
campaigns

greater
traditional

to forgo

of different

marketers
into

consumers

the most
reaching
boundaries.
religious

To achieve

modern

promotions,
uniform
traditional

transformed

As more
strategies.
the benefits
of mar

and using models

cross-culturally

keting products

marketing

area of marketing
of
through activism. The foundation
Toscani's campaigns largely involved using photographs that
issues. Many
humanitarian
expressed
people
the advertisements
claimed
that Benetton's

in anguish went

humans

and disgust,
Toscani's

serious

the company
as

work

accusations

viewers

to view

how

The

meanings.
are real;

advertisements

they

issues

are

issues

and are those rooted in the conflicts


about

people,
saw Business

able

astating

and

between
or

the world

created by "stereotypes

appear to be an exploitation

social

many

problems,

people

of dev

who

provide

actu

a link

either consciously
and people who
to accept
the reality
of such issues.

their misfortunes
refuse

unconsciously

rather,
they
can interpret
in Benetton

depicted
that plague

that the advertisements

ally suffer believe

do

actions"
[War
culturally
expected
it is understand
2002, p. 5). Although
a
to promote
of human
used
suffering

company might
health

con

largely on how
advertisements

and

places,

Journal
that photographs

clothing

indecency

by describing

the messages;
so the market

the market

before

place metaphors
the connotative

of

unique.

rests
of Toscani's
strength
campaigns
sumers
his work.
The Benetton
perceive
"tell"

of

firmly responded

The
not

opposed

exploitation

the line of respect and de

beyond

to such

In response

cency.

who

Unpleasant
Colors
of Benetton: Human
to Sell
Suffering
Sweaters?

Is

it improper or unacceptable to show the death of an AIDS pa


tient or the birth of a child? If such acts occur countless times
each day, why has Benetton been ostracized for bringing im
ages

into

of them

swered,

on the mission
and white
death
Rather

has

and
than

continues

of bringing
also

despair:

found
its unique

market?

As

to grow.

these
The

company

color to a world
a way

to enliven

marketing

questions

are an
founded

filled with black


world

images

of

strategy.

me
on paper and follow
strategies
through
their
and Toscani
advertising
approach
with
and instinctive
processes
spontaneous

create

Benetton

chanically,
developments

United

the world

Benetton

Colors

of Benetton

121

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(Rich 1998). The Benetton


to give meaning
tempts
the world.
throughout

spirit appears

and at

genuine

to people,
and societies
cultures,
are
The advertisements
eye-opening;

they speak to the souls, hearts, and minds of humanity. Benet


ton has established itself not only as a competitor in the inter
national

retail

market

and

production
for the human
spirit.

campaigner
sciences
of many
and
people
own
Benetton
their
"internal"
to face

continues
comfort

and
that

edgment

but

Toscani

has

has

the con

raised

others

advertisements.

hardships,

to develop
As the world

enabled

Benetton

as

also

advertisements

offer

an acknowl
to people
in need,
in a
alone but rather are a "picture"

understanding
they are not

book about life and humanity.


As

Unethical
Colors of
Benetton: A Marketing
Strategy
Faces Legal
Challenges

Toscani's

tension
from

advertisements

to result

continued

in increased

to face
Benetton
consumers,
among
began
its retailers
and others who were
concerned
issue

ethical

of using

human

to sell

suffering

retaliation
the

about

re

The

clothes.

buttals include a civil suit filed by Missouri Attorney General


to Toscani's "We on
Jeremiah W. (Jay)Nixon. In opposition
Row"

Nixon
campaign,
investigation
against
"opened
of glori
the Italian
Benetton,
accusing
apparel manufacturer
... and
officials
murders
prison
misleading
fying convicted
a request
true
to
nature
interview
Missouri
the
of
regarding
on death
of Attorneys
row"
Association
inmates
(National
row inmates
to death
in order
General
2000). To gain access
Death

to obtain
writer

Toscani
from
them,
interview
submitted

editorials

Ken

Shulman
that

prisons,
stating
in a "photo
used

inmate

essay"

and

pictures
that "[n]o

and

that no

representation
row
in the death

ing appeared
serted
that

legitimate
capital

are

articles

piece

(Davis
punishment"
the communication

develop
consumers

by

that presented

focusing
the world

determine whether

forms

separately
protected
the U.S. Constitution

right of individual
however,
standard

on

court

designed

social
with

udicially

exploit

to re
and

concept
concerns.
To

himself

to define

further

the

al

two dis
and marketing,
journalism
ones
are
of media,
often
but
that
constitutions.
For example,
by national
of
the
freedom
press and the
guarantees

citizens

to voice

opinions
are held
often

from courts that find that the companies


rights

rather

illegally misrepresented

and public
companies
private
citizens
and
than individual
to express

but

a new

unfamiliar

needed

as

to spark debate on

was

issues

cloth

Benetton

effort
2001, p. 9). Toscani's
Benetton
channel
between

courts

Toscani

to prison
the
officials,
fine
line
between
ready
tinguishable

issue

of journalism

no

Because

of Colors,
an advertisement

"not

be

be gen

the photographer
journalistic news

occurred.

false

would

would

profits

erated" (Davis 2001, p. 9). In justification,


and journalist claimed that their work was

freelance
to the U.S.

requests
interviews

and

and

the

themselves
others

or

when
provide

their

respectfully;
to a different

receive

their

advertisements

prej
in

consumers

with

122 Mark

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All use subject to JSTOR Terms and Conditions

criticism

have exceeded
false

J. Barela

In Benetton's

formation.

can

defendants

convince

the

not part of an advertising


ism"

p.
doctrines
legal

foreign

specific
and

and duties

obligations
As

its retailers.

a result

the company's

paigns,
ferent

some

that exist between

Benetton
cam

multinational
are

subject
such
permit

that may

to many

dif

expression

it.

modern

circumstances,

indeed journal

of many
application
to determine
the country

of Benetton's

and others that may prohibit


In some

the
was

an

advertisements

systems,

legal

strategy, that itwas

9). In addition,
must
be used

2001,

(Davis

... is whether
"[a] key issue
court
that [the] campaign

case,

law has

in trans

succeeded

forming journalistic moral obligations into legal principles,


including the idea that journalists have a legal "right to do"
versus doing the "right" thing. Many media
lawyers have
stated that by "embracing a concept of social responsibility,
invite incursion of law into
the news media may unwittingly
what

were

formerly

tions"

to be

considered
at

in nearly

every

country

content

the

of

ques

has faced

its advertise

its retailers
legal challenges
re
caused
the
advertisements
by
from

As a global company, Benetton's


exist

Benetton

(Kirtley 2000, p. 628). Although

aimed
opposition
directly
it has also received
ments,
that believe
the controversy
in lost sales.
sulted

ethical

purely

legal and ethical problems

where

the company

re

supplies

tail stores. As I discussed previously, the legal action sought


in the United States was based on intentional misrepresenta
tion. In 1997, a decision by the German High Court addressed
concerns of Benetton retailers that believed that the shock
method
profits.

used

in the advertisements

Although

retailers provided Benetton with


the

decisions,

vertising

unfairly
between

the arrangements
retailers

caused

decreased

Benetton

and

its

the authority tomake all ad


argued

that

there were

"pro

tectable interests" [schutzw?rdig Interessen) that Benetton


should have considered in exercising its discretion (Schmertz
and Meier 1997). Both the district court and the state supreme
court denied the retailer's claims (Schmertz and Meier 1997).
On appeal, the German High Court issued a decision in sup
port of the lower court rulings, denying damages to the retail
ers (Schmertz and Meier 1997). In its reasoning, the High
Court

stated

that

special
as a manufacturer,

Benetton,

and that Benetton was


effects

resulting

that

existed
between
relationship
and the independent
retail stores

required to take responsibility

the advertisements

presented

for the

to retailers

the High Court held


(Schmertz and Meier 1997). Although
Benetton to a certain level of liability, it also believed that
Benetton "could not be denied the right to pursue new and
econ
because
"[a] free market
strategies,"
advertising
some discretion
allow
such as Benetton
omy must
companies

unusual

inmaking

risky decisions"

Furthermore,

United

Colors

because

it was

(Schmertz and Meier


reasonable

to believe

1997, p. iii).
that Benet

of Benetton
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ton's

economic

in selling

interest

the same

was

its products

as

those of its retailers, the court considered this in evaluating


Benetton's business decisions and ultimately held the retail
ers at fault for leaving such decisions exclusively to the par
ent company (Schmertz and Meier 1997).
is an example

case

This

of a court's

to question
in general
is
choices.
The

unwillingness
a
of
which
company,
practices
advertising
in
considered
the most
business
capable
making
the

court

refused

nomic

which
interests,
may
a basic
to preserve

omy,

to define

further

the

have

retailers'

restrained
of

component

eco

protectable
Benetton's

auton

markets

capital

(Schmertz and Meier 1997). Although other courts have held


that similar kinds of shock advertising are anticompetitive,
the German High Court does not contradict such decisions be
cause

some

cases

have

that

proved

shock

tually lead to increased sales (Schmertz and Meier


the

time

tion

and

it seems

being,
success

that Benetton's

ac

may

advertising

1997). For

worldwide

recogni
its unique
adver
of national
the consolidation
tisements;
however,
markets,
re
communication
and legal systems may
cultures,
channels,
more
consumer
to
Benetton's
advertisements
become
quire
have

to avoid increased legal and ethical scrutiny.

sensitive

As globalization
consumer

markets

the globe, businesses


to remain
competitive.
of advertising,
such as those

its competitors,
and they are
to
and
worldwide
troversy
challenge

tising and the media.

on misfortune
and

loved,

by Benet

one product

con
to stir market
likely
laws that govern
adver

to increase brand

intended

Campaigns

focusing
hated,

by
the most

used

of

expand
need
for

The

in distinguishing

essential

from

come

must

around

become

awareness

the development

markets

foreign
methods

ton, will

to influence

continues

into new
unique

it to continue

enabled

and

be
may
despair
of this revolu

controversial

tion. As courts further define the ethical obligations and legal


limitations of the international media, Benetton may find it
self

amid

consumer

for using
illustrations
of pain
outrage
awareness
to
to
and/or
sell
clothes.
support
suffering
to
in the meantime,
the company
continue
However,
may
and

reap the financial and publicity


As

A New Strategy

ops

owned
ing,

of expansion
and redevel
phase
to support
the changing
and wants
needs

begins
its product
mix

of its customers,

it will

strategies.
in each
focus

reiterates

company.
The

industries

from its distinctive


a

of

maintaining

family
of operations,
advertis
including
at the foundation
of the
and mission
Benetton

took

a truly global yet classic

seems
company
and continued

distinguishing

greatly

area

the beginning,

gained on providing
kets.

benefit

Benetton's

the values

From

of its campaigns.

its new

Benetton

business

benefits

to have
to develop

taken

risks;

style to its mar


traits

the best

innovative

the United Colors of Benetton

methods

of

its
of

label.

124 Mark

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All use subject to JSTOR Terms and Conditions

it bar

J. Barela

to a retailer
transformation
from a producer
repre
a basic
to
its development
network
from
organization
one that is more
diverse.
The company's
of quick
integration
are
sure
to
times and enhanced
benefit
response
capabilities

Benetton's
sents

future
mental

Because

growth.

components
remain
among

will

to isolate
funda
ability
his
societies,
campaigns
consumer
in
adver
exceptional

of Toscani's
of cultures

the most

and

tising. Finally, by continuously


adapting products and cam
to
the
Benetton
will remain a symbol
paigns
changing world,
of success

among

has played

a significant

tional
As

worldwide

one

companies,

clothing

role in the globalization

that

of multina

businesses.

a brand

tional

is recognized

that

locations,
Benetton

ments,
clothing

has

and distribution

production

and
methods,
remained
competitive

Benetton's

industry.

"the people

into an international

name

Benetton
consumers,

distributors,

Although

the company

a clothing

culture

unique

and

operations

and

retailers,

has benefited

col

and by using

to capture
market
intimate
relationships

methods
advertising
to establish
continues

and Future
for

clothes

it develop

with

business

Benetton:

advertise
unique
in the worldwide

producing

has helped

orful style. By redeveloping


innovative

on

focus

of the world"

multina

products,

communication

channels,

line

for its trendy

distinctive

share,
among

the Benetton

family.

new

from developing

to production,
and advertising,
there
distribution,
approaches
a great deal of
remains
it
before
reaches
progression
maturity.
Benetton's

to revolutionize
the retail
attempt
by
industry
new
has
the
way
troducing
operational
procedures
paved
to streamline
other multinational
every
companies
nearly

successfully
however,
changing

to redesign
its strategies.
require Benetton
eventually
to the company's
in changes
evidenced
been
already
and
sales
Benetton
tribution
realized
has
processes,

As

may
has

in market

changes

retailers

move

one

shift

roof.

comfortable

it to remain

require

from

away

larger megastores
stores
toward
that have

Consumers
and

offer

demand
superior

into

additional,
to maintain
pany
were
Benetton

might

its image
to remain

and

companies

retail locations

prime

anchor

United

the

Colors

such

throughout

company's

of Benetton

establish

such

specifics.
is necessary

of superior
smaller

and
of the
un

quality
shopping

and

In addi

quality.

itmust

in

come to be viewed

easily

medium-quality
will

it can provide
markets
upper-class

in which

For

everything
stores
be large

that

service

dis
that

current.

boutiques
a result

was

tion, as Benetton has already planned,


in markets

small

toward

private
world
market's
der

demands

Benetton's

example,

as

and marketing.
Thus
sales,
far, Benetton
to promote
used
issues
its brand;
social
in communication
markets
and advances

of production,

pect
has

in
for

itself

Expansion
for the com
and

style.
centers,

as a foreign competitor
as

Gap.

Store

the world's

appearance

among

openings

If
it

to
in

larger cities
the

trend

125

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Past,

Present,

brands.

setting

combination
company's

Because

mainstream

unique

the

sale

cient

methods

treme

changes
loss.
identity

campaigns

exposure,
the

associated

closely

as a result,
to promote

clothes;
to continue

should

it is im
social

on

effi
company
maintaining
ex
of production
and distribution;
however,
in
in the company's
overall
result
image might
the past

changes

focus

decade,

Benetton

in its production

it has maintained

but

processes,

company's

During

enced many

to

company

as

such

in

changes

its consumer

media

modern

that likely has become

of the

for the
portant
awareness.
The

its clothes,
the
require

Internet,
to
the
brand.
computers
promote
to promotion
to be a
continues
approach

different method
with

as the
the ex

and

telephones,

Benetton's

to promote

may
To maximize

its approach.
use
should

wireless

unique

has refrained from entering

historically

advertising
channels

communication
change
Benetton

Benetton's

strategy,

trends.

Benetton

Although

this

of colors and styles will be recognized


own and will not easily be confused with

retail

panding

of

has

experi

and distribution

its effective

controversial

yet

customers
Because
have
little or no in
process.
advertising
use
a retailer's
continued
teraction
with
processes,
logistical
in
and
themes
the
advertise
of recognizable
colors,
images,
ments
tween

use

Benetton's

has

the globe

of provocative
in both
resulted

advertising
success
and

also

Developments
have
nology

methods

around
The

troubles.

same

a sense
to promote
and di
of unity
attempt
cause
criticism.
of controversy
and
have been
the
in transportation,
and tech
communication,
into
societies
homogeneous
races.
and
cultures,
languages,
new
to these changes
has offered

formerly

changed

that

multiple
comprise
effort to appeal
in traditional
marketing
developments
must
to achieve
its ultimate
continue
Benetton's

purpose:
It can achieve

promotion
this through

do

so

mean

become

that Benetton's

of

the

around

is to achieve

aware
by remaining
to evolve with
the advertisements

it must

it

however,

resources
to use marketing
If
the
company's
goal
campaign.

require
changes
does not necessarily

paigns will

of clothes.

methods;

attempt

in each

uniformity,

sales

and

the company
a conscious
world

be

relationship

that

campaigns
versity

ones

a long-term
to support
and the brand.

is essential
the consumer

that market
them.

social-issue

obsolete but rather that the way

This
cam

they are

in current
must
the changes
consider
politics,
presented
consumer
that tra
Toscani
has proved
and
laws,
perceptions.
means
are
not
the
ditional
of promotion
methods
only
by
a brand
can
innova
and
which
creativity
gain recognition;
of a brand,
in continuing
the development
tion are essential

but it is crucial
world

markets

to align each campaign with


to achieve

the most

effective

the changes
results.

MarkJ.

This content downloaded from 190.144.171.70 on Mon, 03 Aug 2015 19:42:51 UTC
All use subject to JSTOR Terms and Conditions

Barela

in

In

move

Benetton's

addition,

away

a distribution

from

method based purely on licensors and licensees has proved


the company's flexibility in adapting to changes. The contin
success
key to Benetton's
while
with
experimenting
more
efficient.
Benetton
process

ued

secure

is to maintain
new

dures

ways
and Toscani

to make
have

proce
the sales

taught

the

industry the importance of change and the need to maintain


the fundamental objectives of the company, in this case the
at each
of a "family"
tionalization
of Benetton's

creation

through the establishment

step of operations.
brand
has
proved

interna

The

successful

of such relationships.

Benetton's
method
of reaching
unorthodox
Finally,
although
consumers
has resulted
in success
for the company,
there are
a
in which
extreme
situations
tactics may
such
devastate

business. As a company, Benetton's

history

is filled with

the

introduction

of unique
and adver
ideas,
clothes,
"foreign"
a
has become
tisements.
Because
of this, the brand
familiar,
consumers
use
to
that
such obscure
pro
image
global
permit
a new

For

cedures.
campaigns,
Benetton

is an

as the home

ing

Italian

to world

culture

and

it has probably

fashion,

consumers

from

scrutiny
fashion

to use
that attempts
similar
be
In
different.
because
addition,
may
in a country
often
company,
regarded

company

the results

who

have

come

received

to trust

less

Italian

the

it for setting
and develop
trends
as at
A U.S.
company
perceived

respect

the

clothing
industry.
and leaders might
races,
cultures,
traditions,
foreign
tacking
as racist or
mix
Benetton's
be viewed
of
unique
derogatory.
new
a
it create
has helped
and refinement
fashion,
style,
to be one of few competitors.
Out
in which
it appears
niche

side of the clothing


from

industry, organizations

that might benefit

Benetton's

be
might
For exam

social
acknowledgment
approach
deal with
the issues
that directly
presented.
a national
choose
hunger
organization
might
ple,
in
of
advertisements
malnourished
children
tographs
those

funds
less

for

its cause.

them.

exploitative
Whatever

seems

that

it received

the
from

Buonaguidi,
Review,

The

because
the

advertisements

did

company
clothing
concerns
are of Benetton's

company
around

Dave
(2002),
22 (June), 8.

has

also

earned

pho
to raise

be viewed

might

to use

not

as

sponsor
critics,

the positive

it

support

the world.
"This Book Will

Inspire

You,"

Creative

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J. Barela

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