Controversial, offensive and bizarre are a few of the words used to describe the Benetton empire. Pauline Springett looks at the family behind the name
LUCIANO BENETTON, 61-year-old president and co-founder of the eponymous Italian business empire, would almost pass as a traditional tycoon.
The tweed suit is of perhaps a little better than average cut. But it is the unruly mass of curly white hair and the green tie emblazoned with sheep jumping hurdles that suggest Benetton may not be an ordinary mogul.
The sheep are a witty reference to the flock of multi-coloured sheep that helped open the world’s largest-ever Benetton store last week at London’s Oxford Circus. Still, the fact that he is wearing clothes at all is perhaps an advance. He was once photographed nude for an advertising campaign, and more recently he and his family were pictured wearing straitjackets.
About 40 years ago, Luciano’s sister Giuliana presented him with a multi-coloured jumper she had made herself. The pullover attracted much admiration, the siblings started a small business selling their sister’s woolies and the seeds of an empire were sown.
The holding company, Edizione Holding spa, controls four main arms: manufacturing, which encompasses the fashion group; property; food retailing and motorway restaurants; and a miscellaneous collection of businesses, including a bank.
Benetton is a family concern. Luciano is the president, brother Gilberto is vice- president, Carlo is the production director of Benetton worldwide and Giuliana is the creative force. Numerous Benetton children now work in various parts of the empire, including Alessandro, Luciano’s son, who is tipped to take over one day.
If Luciano has his way, that day will be a long way off. Talk of the succession is, he says, premature. “I don’t know what retirement would be.” Perhaps, he adds, he would be forced to work less if he was paralysed in his bed.
Away from work he professes to prefer the quiet life. “I like places that are not too crowded.”
The family nature of the business is very important to him, despite expansion having necessitated employing non-family in important jobs. Benetton sticks to family and close friends for key posts. “We would hardly ever welcome outsiders.”
The group is 72% owned by the Benetton family, with the rest split almost equally between Italian and American institutional investors. Luciano Benetton is dismissive of the concerns of external investors. “As a rule we don’t intervene on share prices. I can say that the share price is often ruled by mood. There is no reason for us to take action.”
However, he stresses that this year’s profits are on course to be higher than 1995 when the group made 220-billion lire ($135- million) after recovering from a sharp fall in demand the year before. The company will be debt-free by the year end, he insists.
The Benetton name has gained worldwide recognition thanks to the often controversial, some would say offensive, advertising campaigns featuring images such as a black woman breastfeeding a white baby and a man dying of Aids.
Luciano Benetton is unapologetic. “I agree with the overall approach. These images are part of life and part of entertainment.” He adds that different images shock different cultures. “We do not do this deliberately.” Is there anything he would draw the line at depicting? “I wouldn’t claim our product is better than other people’s.”
Equally bizarre is Benetton’s plunge into the world of Formula One motor racing. But the team won last season’s championship with a drivers’ and constructors’ double. “It’s proved we are well-organised and successful in something that is not our core business. It enhances our image.”
But not all publicity is good. Next March, Luciano Benetton is due to stand trial on charges that he was a party to the fraudulent bankruptcy of the Fiorucci clothing company. He insists on his innocence, saying that he parted company with Fiorucci a year-and-a-half before it went bust. “We never ran this company,” he said.
His lawyers are on the case. Which leaves him free to concentrate on redefining Benetton – they are moving from boutiques to larger stores.
“I have the feeling of never having reached my goal. There is always room for improvement and growth.”