Benetton knits were once one of the most popular picks on the high street. But after announcing losses yesterday, the fashion giant renowned for its kaleidoscopic shades is looking a bit off-colour.
The Italian company's income has shrunk 33 per cent since last year, and its shares have dropped 22 per cent since January.
For decades, the family-run chain's Pantone range of quality knitwear stood out from more monochromatic offerings like a clown at a funeral. In the days before catwalk trends were transmuted and disseminated within nanoseconds, Benetton represented a striking alternative to the mainstream - while firmly establishing itself as part of the retail landscape.
The brand began in 1965 as a small collection of jumpers produced by Luciano Benetton on a knitting machine that he sold his bicycle to pay for. After a warm reception, the business grew and he was joined at the helm by his three younger siblings.
"In the 1960s, Benetton really connected with the time," said Jodie Ball, fashion editor at the Worth Global Style Network. "It was all about colour and poppy brights, which was a good, solid foundation for the brand. And in the 80s again, with their provocative campaigns and shocking imagery, Benetton really nailed it."
Its public face was every bit as colourful as its clothes: groundbreaking and daring socio-political adverts were shot by esteemed photographer Oliviero Toscani, grabbing not only headlines but people's attention, too. A line-up of exotic tribespeople, a viscerally new-born baby, a group of children who represented every ethnicity under the sun.
"Benetton cleverly employed some brilliant creatives who gave the brand an identity," said fashion commentator Caryn Franklin, who worked for street style bible i-D at the time. "The portraits with their bright make-up, mohicans, every skin tone - they gave it an individuality."
Added to this was a magazine, Colors - an adjunct to the clothing line, practically independent of it and painfully hip - to which Toscani contributed and which was edited by the legendary graphic designer Tibor Kalman. Published in seven languages, it pushed a wider message with artistic and political content that reached far beyond its corporate origins.
It was a type of social networking, before the term had been invented. "That shocking reportage gave what was bland knitwear an identity," said Franklin. "Whereas what you have now is just bland knitwear."
After riding the zeitgeist for social responsibility, Benetton's juices began to run dry. Products that had always been sensible, staid, preppy and even Sloaney, but which had been invigorated by the creative energies surrounding them, began to look tired as the rest of the high street caught up.
Clothing with a conscience was entirely at odds with the Primark-led "fashion fashion" rush for cheap, disposable and on-trend pieces. "They lost touch with younger consumers," said Jodie Ball, "and all that they had achieved felt out of focus. They struggled to find a place in the fast-fashion market, and they couldn't do a U-turn on everything the brand had stood for. They missed a lot of opportunities."
The success of stores such as Uniqlo and American Apparel are proof that the Benetton model was not initially beyond resuscitation. The Japanese chain has much the same USP as Benetton initially did, offering good quality and range at reasonable prices. But it has also pushed new technologies, fabric innovation and digital elements that have updated the genre, while American Apparel has targeted a specific "hipster" demographic. For a long time, Benetton has felt too broad in comparison, targeting everybody and nobody, losing its place at fashion's forefront.
These are trying times for all retailers, and players ignore the importance of brand identity at their peril. The profusion of trumped-up anniversaries and collaborations all over the high street is proof enough of how everybody has to work harder to remain relevant. But Benetton, which once set the agenda, seems to have singularly failed to recognise this.
"Colour has been such a big message and a huge trend for the past two seasons," added Ball. "Given Benetton's 60s pop heritage, they could definitely have tapped into that to raise their brand profile. Fashion is cyclical, but in the backlash to fast fashion, Benetton could push their green credentials."
Benetton still enjoys good sales in Asia - which may shore up yesterday's bad news - but the industry is ruthless at the best of times and nobody, even the amiable Benetton, can exist on goodwill alone.
IMAGE PROBLEM FOR SHOCK ADS
Italian retailer Benetton hopes to shock the world again - and revive its fortunes - with a new advertising campaign, unveiled in Paris yesterday.
The fashion brand, which in its heyday used posters including a photograph of a man dying of Aids and a priest and a nun hugging, is trying to recapture its successful past while bringing the brand into the digital age.
The new campaign shots, titled Unhate, show world leaders kissing each other.
Images include the Pope and the Sheikh of the al-Azhar mosque, Angela Merkel and Nicolas Sarkozy, and Barack Obama and Hugo Chavez. All are fakes, produced by digital manipulation.
The images have already been banned by the Sunday Times, the International Herald Tribune and the Guardian.
The campaign immediately sparked controversy: Benetton pulled the photos showing the Pope after the Vatican issued a stern condemnation, expressing "the firmest protest for this absolutely unacceptable use of the image of the Holy Father".
The company said it was "sorry that the use of the image had so hurt the sensibilities of the faithful".
With a nod to the importance of social media to the success of a campaign, 50 per cent of Unhate will be digital and Benetton has set up a "kiss wall" on Facebook.
The total cost of the campaign is €10 million ($17.6 million).
- INDEPENDENT, AFP