Italian clothing giant Benetton has cut prices by 20 per cent this
season thanks to lower production costs from suppliers in India, its Asia-Pacific chief executive said at the weekend.
The company stated Benetton was using Indian suppliers because of customer demand, not cost-cutting. An executive stated in The National: "We will have more collections tuned to Asian markets with Asian patterns and Asian fitting," he said.
Central Marketing Group subsidiary Central Trading imports and
distributes the United Col ours of Benetton brand, known for its
colourful knits and provocative advertisements. The Indian-made products will attract lower tariffs. Wool is normally subject to a 60-per-cent tariff, but Asian fabrics are cheaper. Benetton said this would increase sales by 15 to 20 per cent this year.
From June, Warner Music executive Gerolamo Caccia Dominioni will be the company's new chief executive, ending uncertainty following his predecessor's resignation several months ago over differences in developing internationally, especially in Asia.