MercoPress. South Atlantic News Agency

Benetton targets South American market

Benetton the Italian fashionable textile retailer has plans to vigorously expand in Latin America in the next two years, since of the 100 million garments the company sells annually only one million are purchased in the region.

"Latin America only represents 1% of our sales, but as the economy stabilizes and begins picking up we could in a few years reach 3 million garments, with Chile as one of the leading countries given its stability", explained Luciano Benetton.

The Benetton family considered the third richest in Italy with 4,6 billion US dollars has a distribution network of 5,000 outlets in 120 different countries (15 of them Chile), most of which work on a franchise system with standard models. In spite of the recession, profits in 2003 reached 120 million Euros.

"In 2003 we managed to sell two million more garments which is encouraging but not enough. I believe the world recovery will come in 2005, so we still have 12/18 months of prudent investment ahead", explained Mr. Benetton, who is also among the main landholders in Argentine Patagonia with some of the largest sheep farms.

Regarding new markets, in Shangai Benetton opened one of the biggest outlets of China and is now targeting India, Eastern Europe, "without forgetting other established markets such as South and Central America".

The Benetton family fortune was started over half a century ago selling home knit woollen garments and has since expanded to other areas such as real estate, publicity and share holdings among which the Chilean telephone system Entel, through Olivetti and Telecom Italia.