Is Benetton irrelevant? Wasn’t that long ago they were making headlines with their controversial ads and trend setting clothing. Today their once target market now says they are really for “an older generation.” But that older generation doesn’t seem to care either.
Their customers moved to H&M, Zara and others simply because Benetton no longer provided what they wanted. Benetton appears to have stopped paying attention to their customers. Some say that is because they have too many franchises and partners and are too far removed from the customer. Baloney. They just stopped paying attention, and the results are as expected, at least to me.
In the last 10 years their sales are up only 2% while their competitors sales are booming. Their market cap is off about 80%. They have changed top management four times in ten years, without changing results. They are focusing on operating expenses and trying to cut them by negotiating better sourcing contracts. Not bad, but not the root cause problem.
If you forget to think like your customer, they will find someone who does.