Brands

United Colors of Benetton. Important steps were taken during the year for a rational reduction in collection complexity (-20%) of the United Colors of Benetton fashion brand, and of the Group's other major brands, generating a more focused assortment and the definition of order guides by type of store and purchaser clusters, in turn helping improve the appeal and attraction of stores.

This process will be taken forward in 2009 with a redefinition of store layout in order to reinterprete the use of internal spaces with a twin objective: to optimize the composition of orders for the company and to improve the shopping experience for the end customer.

This year's collections were well received by the Fashion world, with industry journalists showing their appreciation of the UCB advertising campaigns and products in over 14,000 articles about the brand.

The United Colors of Benetton Adult brand benefited in 2008 from the important changes adopted and confirmed its positive trend (+4%) thanks to an improvement in mix and the strategy of focusing on product categories as drivers of growth. The brand improved its performance in Europe, Asia and Latin America. New openings in selected international locations, including Genoa, Barcelona and Doha (Qatar) met with a good reception.

The UCB collections offered countless themes and proposals, amongst which of particular note was "African Mood", a line proposed in the first half of 2008, with a range of exotic, tribal style accessories and necklaces, reflecting the influence of the "Africa Works" advertising campaign, presented in February in Dakar with the participation of the Senegalese singer Yossou N'Dour.

Benetton Man grew by over 12% in 2008, with a total of 30 dedicated stores opened in the year; this brand accounted for 22% of adult collection sales against a medium-term objective of 20%.

The underwear segment performed strongly (+13%): Undercolors continued to expand with new openings, some of which designed to be large enough to accommodate the brand's entire range, such as in Palermo.

UCB Childrenhas consolidated its diversification by age band, also thanks to its new System concept, presented in Milan in a temporary store in the city center, the first to preview the Fall/Winter 2008 collections. This test has also confirmed the merits and effectiveness of the customer order guide, which included for example the colored overcoat, one of the temporary store's bestsellers, which sold out in the first few weeks of opening. Around 100 new children's stores were opened in Italy and abroad, includingBenetton Baby stores for the newborn to 5 years category, which now number a total of 35.

Lastly, the accessories sector continued to develop with the addition of high-end fashion products to the range of extras for men and women.

Sisley. The glamour-rich Sisley brand, performed well in 2008 (+5%) thanks to its 1,000 stores worldwide, with a significant presence and good performance in Italy and Mediterranean Europe.

The structure of the collection focused on the latest trends, with a heavy emphasis on fashion throughout the range. The "Limited Edition" collection in quality fabrics and threads, with sartorial attention to detail and the use of edgy, stylish accessories, has continued to inspire consumer interest.

The brand completed its range with the launch of the Sisley Underwear collection - men's and women's underwear and accessories offering an elegant, sensual style, with a heavy emphasis on fashion - further enriched by the beachwear line introduced for Spring/Summer 2009. The new collection, presented in the Fall in the prestigious setting of the Hotel Bulgari in Milan, is receiving excellent reviews from the specialized press and is widely available in the Sisley store network.

The Sisley Young line, inspired by the mood and trends of the adult fashion world adapted for fashion-conscious youngsters, has successfully developed the business opportunities offered by young consumers attracted by sophisticated, out-of-the-ordinary products, and has strengthened its position with 20 new openings in Italy and abroad and a double-digit increase in sales (+76%).

The sophisticated, fashion essence of the brand also emerges in its communication campaigns during 2008. Realized by the Swedish photographer Camilla Akrans, whose lens expresses a cultivated idea of fashion, the clothes are once more at the heart of the message. The communication campaigns, assisted by product placement activities, appeared throughout the world in the form of posters, magazine advertising and collection catalogues.

Playlife.Playlife ended 2008 with double-digit sales growth (over 40%) and a significantly stronger commercial network, reconfirming the strategy of expanding its presence particularly in Mediterranean Europe with the opening, amongst others, of important new stores in Spain.

The in-store offer has been specialized, emphasizing different consumer segments and focusing the product message on positive living. Thanks to the new "What a Life!" pay-off, product communication has evolved to represent a world of uncomplicated, cheerful emotions, forming part of a renewed attitude to dressing.

The merit of the new concept, specially developed for small spaces and display in clearly defined areas, has proven easily interpreted by consumers, contributing to brand development and characterization of its identity.

The "What a Life!" project represents the maturity which will provide a creative springboard for concepts, ideas and brands.

By Spring/Summer 2010 Playlife will be presented as a shopping experience, further adding value to the brand, to face a difficult market with confidence and determination.

Playlife is therefore evolving with a customized, almost designer approach, responding to a consumer of all ages, with a very distinct style and character.