The Benetton Group Annual Report 1996

Sales of core products, by business category
1995 1996
Clothing 2,259,385 2,191,326
Fabrics and yarns 193,059 226,621
Footwear 98,533 82,353
Accessories 158,887 149,105
Cosmetics 14,508 17,013
Total 2,724,372 2,666,418
Notwithstanding a rise in volume by about 4%, as discussed earlier, sales of clothing were adversely
influenced by the appreciation of the Lira against the principal export currencies.
Core product sales, by brand
1995 1996
Benetton 1,657,136 1,548,463
012, Zerotondo and 999 502,379 565,934
Sisley 321,555 308,709
Other sales 243,302 243,312
Total 2,724,372 2,666,418
26. PRODUCTION COSTS
Purchasing costs
This caption consists of the following:
1995 1996
Raw materials and finished goods 859,981 729,512
Other materials 30,025 29,383
Sundry purchases - advertising 2,212 3,295
Other purchases 34,261 29,921
(Discounts and rebates) (1,743) (1,674)
Total 924,736 790,437
Services received
This caption consists of the following:
1995 1996
Subcontracted work 572,893 590,555
Transport and distribution 56,969 46,797
Commission expense 114,994 132,629
Advertising and promotion 116,538 97,516
Other services 156,362 167,885
Total 1,017,756 1,035,382
The drop in advertising and promotion costs is due, in particular, to the discontinuance of advertising in
the cosmetics sector beginning in 1996.
Other services mainly include power costs, maintenance costs, consultancy and other fees, insurance
premiums and personnel travel expenses.