THE GROUP AT A GLANCE
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- Melina Melton
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1 THE GROUP AT A GLANCE The BasicNet Grup perates in the causal and sprtswear leisurewear, ftwear and accessries sectr principally thrugh the brands Kappa, Rbe di Kappa, K-Way, Superga, Jesus Jeans, Lanzera and Sabelt and has the exclusive glbal distributin license fr all Brik brand prducts. Grup activities invlve driving brand enhancement and prduct distributin thrugh a glbal netwrk f licensees. This business netwrk is defined as the Netwrk. And frm which the name BasicNet derives. The Netwrk f licensees encmpasses all key markets wrldwide. BasicNet S.p.A. is the parent cmpany f the Grup with headquarters in Turin - listed n the Italian Stck Exchange. STRENGTHS The strengths f the Grup are funded n the strategic pririties since its inceptin and which encmpass: 1. Brand psitining 2. The Business System 3. Web integratin 1. Brand psitining The Basic Grup brands frm part f the infrmal and casual clthing sectr, which has experienced significant grwth since the 1960 s and cntinues t develp with the liberalisatin f clthing trends. is a practical sprtswear brand, serving active and fast-paced individuals, wh in their sprting activity require highly-functinal clthing, while displaying a yuthful, clurful and riginal lk. The Kappa cllectins include als ftwear and accessries fr sprt, designed t ensure peak perfrmance. The Kappa brand spnsrs majr clubs glbally acrss a wide range f sprts, in additin t many natinal sprting federatins, particularly in Italy. is the brand fr thse wh in their free-time and infrmal prfessinal activity seek t wear mdern, high-quality sprtswear at accessible prices. The brand serves energetic, mdern individuals, pen t an ever-changing wrld. is the leisure ftwear and accessries brand, designed fr thse seeking cmfrt, while demanding a fashinable, clurful and stylish lk and high quality. The Superga cllectins serve the needs f a wide crss-sectin f custmers, within every age categry.
2 exceptinal waterprf clthing: classic, mdern, high-technlgical and functinal cntent and in a wide range f clurs. In additin t the riginal jackets with heat-sealing zips, strable in their puch and prduced with waterprf and wind-prtecting warm and breathable materials, the cllectins include als fashin-riented clthing and accessries which are identically practical and functinal. is the jeans brand, created in 1971 by the yuthful Maurizi Vitale and Olivier Tscani. is the ftball clthing and ftwear brand. The brand was acquired by the Basic Grup primarily as an perating platfrm fr the intrductin f the Lanzera brand int the United States. is the high-end leisure, sprt and frmal ccasin ftwear brand, emerging frm the racing and autmbile wrld. The brand is psitined in the fashin segment. Since Octber 2011, the Basic Grup has held 50% f the fashin categries (clthing and ftwear) f the brand and is als a glbal licensee. is the Italian brand f cutting-edge technical prducts fr cycling, skiing and running: glasses, helmets, masks, accessries, underwear and clthes fr amateurs and prfessinals. Brik 's missin is t use the brand's explsive energy t create icnic design prducts fr athletes and sprts enthusiasts requiring cmprmise-free perfrmance and safety. 2. The Business System The BasicNet Grup has develped arund a netwrk business mdel, targeting licensees as the ideal partner fr the develpment, distributin and surcing f its prducts glbally, chsing partners which act nt nly as a prduct supplier, but as an integrated supplier f services, i.e. a business develpment partner. Innvative, flexible and mdular, the Business System f BasicNet has enabled the Grup t grw quickly, althugh maintaining a lean and agile structure: a large enterprise centered arund many businesses n a fully web-based netwrk integrated IT platfrm designed t maximise infrmatin flws thrugh real time sharing. The Business System was drawn up and structured t develp bth internal lines (new licensees and new markets) and external lines (new brands develped r acquired and new business lines).
3 The functining f the Business System is very simple. The Parent Cmpany BasicNet S.p.A. cntrls the strategic activities: prduct research and develpment; glbal marketing; Infrmatin Technlgy, i.e. the creatin f new sftware fr the nline management f all supply chain prcesses; c-rdinatin f prductin and cmmercial activity infrmatin flws n the licensees Netwrk; strategic finance. Licensees, accrding t regin r gds categry, distribute prducts t retailers, carry ut lcal marketing, reginal lgistics and wrking capital funding. The licensees invlved in BasicNet brand finished prduct management (surcing centres) apply a similar mdel and distribute t cmmercial licensees in their respective areas. As part f the Business System develpment, the Grup has als established a direct custmer sale system, currently develped by the Italian licensee, called plug@sell. The mdel cmprises a web-based integrated sales management system, with a platfrm which simply manages all daily activities at the stre in real time, frm rders t stck management, t accunting and training f staff (pre-pening and nging), thrugh class-based and nline training. As part f the retail prject f BasicRetail S.r.l. (a cmpany entirely held by BasicItalia S.p.A.), the varius brands have been develped arund the three principal retail levels, thrugh which the Grup sells directly t the public in Italy: - (LEVEL I): Brands Stres lcated in city centres, high streets r shpping centres with specific franchising agreements; - (LEVEL II): Brand Outlets lcated in Outlet Villages; - (LEVEL III) Discunt Stres: lcated in ut-f-twn cmmercial r industrial parks. The frmats have been develped in rder t ensure presence n a wide range f market segments. 3. Web Integratin The IT platfrm is ne f the majr strategic investments fr the Grup, with a high degree f fcus in terms f staffing and centrality t Business System develpment. This platfrm was designed and develped in a fully web integrated manner as the perfect cmmunicatin tl between Netwrk elements. The Infrmatin Technlgy department is invlved therefre in the design and rlling ut f the data cllatin and transmissin systems which link the BasicNet Netwrk cmpanies tgether and externally. The business mdel therefre centres n e-prcesses, i.e. cm divisins - each f which with a prductin input and exchanging r negtiating with the ther divisins, exclusively thrugh the nline platfrm.
4 STRUCTURE OF THE GROUP The Basic Grup cmprises Italian and internatinal perating cmpanies within the fllwing sectrs: - license management (Business System); - Prprietary licensee; - Prperty management. The Business System perating segment includes the Parent Cmpany BasicNet, the trademark hlders f the Grup, Basic Trademark S.A., Superga Trademark S.A., Fashin S.r.l., Jesus Jeans S.r.l. the services cmpany BasicNet Asia Ltd. in Hng Kng, Basic Prperties B.V. in the Netherlands and the sub-licensee Basic Prperties America, Inc. in the USA. In additin t the peratins develped directly by BasicNet S.p.A., utlined abve, the activities f the ther cmpanies cncern the granting f the intellectual prperty rights f the BasicNet Grup t licensees, administrating the cntracts and managing the relative revenue streams. The prprietary licensees are BasicItalia S.p.A. and its subsidiary BasicRetail S.r.l.. BasicItalia S.p.A. acts as a licensee fr the usage and develpment f the intellectual prperty rights and f the prducts f all BasicNet brands fr Italy. The cmpany is the licensee and incubatr fr the testing f Grup develpment prjects. The cmpany hlds a number f majr spnsrship and merchandising cntracts, sme f which with internatinal visibility, benefitting als the Grup and the Netwrk. BasicRetail manages Grup brand sales pints within the franchising prject. Prperty management is carried ut by Basic Village S.p.A.. The cmpany wns the frmer Maglifici Calzifici Trinese prductin site. Restructured and preserved in 1998, the facilities huse the BasicNet Grup headquarters and numerus ther Grup and third party activities. At the end f 2016, the adjacent prperty was acquired, which is currently ccupied by third parties at remunerated cnditins. BUSINESS TARGETS The Grup bjective is t extend its glbal leadership psitin thrugh the strength f its brands. The Grup prject centres n: - the cnslidatin and expansin f the brands in areas with a pre-existing presence, supprting the grwth f licensees thrugh the Business System; - extending the territrial cverage f the brands, thrugh finding new qualified licensees - particularly fr mre recently acquired brands; - the develpment f the plug@sell shps, allwing licensees t imprve market presence and t efficiently target end-cnsumers; - the search fr fresh investment and develpment pprtunities n new markets.
5 The fllwing chart sets ut the rganisatinal structure f the BasicNet Grup: NET S.p.A. 50% PROPERTIES BV ITALIA S.p.A. VILLAGE S.p.A. NET ASIA Ltd. JESUS JEANS S.r.l. FASHION S.r.l. RETAIL S.r.l. (*) SUPERGA TRADEMARK S.A. (*) TRADEMARK S.A. PROPERTIES AMERICA, Inc. (*) Having administrative seat in Italy
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