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- From: DowJones@andrew.cmu.edu
- Subject: Benetton's First Cuban Boutique Lures Foreigners Only
- Date: Tue, 26 Jan 1993 06:01:53 -0500
- Lines: 72
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- By Jose de Cordoba and Lisa Bannon
-
- Benetton Group SpA, the Italian fashion company, opened the first of
- almost a dozen planned boutiques in Cuba, stepping immediately into a
- controversy, The Wall Street Journal reported.
-
- Cuban-American groups expressed anger that the Benetton shops will
- cater to tourists. Owned by the Cuban government, they will sell goods
- only for dollars and thus be off-limits to most Cubans.
-
- The first hard-cash shop, which opened Friday, is in a Havana hotel.
- Laura Pollini, a company spokeswoman in Treviso, Italy, said Benetton
- hopes to open, under license, a total of 10 United Colors of Benetton
- boutiques by year end. The stores, to be located in tourist areas, will
- sell Italian-produced merchandise.
-
- Because it is a criminal offense in Cuba to possess foreign currency,
- most Cubans won't be able to shop in the Benetton stores. In fact, they
- will be risking prison if they even show up with dollars to do so.
-
- "We operate in 108 countries and don't intend to discriminate against
- Cuba," said Luciano Benetton, the company's managing director, who met
- with Fidel Castro in Havana on Friday. "We also have plans to open a
- shop in North Korea next spring," Benetton said in a statement released
- in New York by his firm's unit there.
-
- Benetton's announcement angered Cuban exiles in the U.S. About 50 young
- Cuban-Americans picketed a Benetton store at a Miami mall, saying they
- would burn their Benetton clothes. "It's an outrage," said Frank Calson
- of Freedom House, a New York-based human rights and policy organization.
- "At a time when there's great suffering in Cuba, it's a terrible thing
- for a company to open up stores where Cubans aren't allowed."
-
- Joe Garcia, a spokesman for the Cuban American National Foundation,
- a powerful Miami lobbying group, said additional protests are planned
- in Los Angeles and New York as well as in Spain and Venezuela, where
- the foundation has chapters.
-
- Benetton's New York spokesman said such actions would be "regrettable."
- Noting that the company was heavily involved in the former Soviet bloc
- before its collapse, he said Benetton believes in the potential of business
- to bring change to Cuba.
-
- "I would say that Benetton's entrance into Cuba is long-term and not
- short-term," the spokesman said. "The current condition that the store
- only accepts hard currency is only the present, and not what we have
- in mind for the future."
-
- Benetton has provoked debate many times before, mostly because of its
- advertisements that sometimes focus at least as much on racial and religious
- issues, AIDS and other world problems as on clothes.
-
- For the present, the main market for the Cuban outlets will be foreign
- tourists. The hope is that they can help stave off economic collapse
- caused by Cuba's loss of Soviet subsidies and markets. Cuban officials
- say the island was visited by 424,000 foreign tourists in 1991 and more
- than 500,000 in 1992, mostly from Europe and Canada. Some analysts question
- those numbers, however, saying that one Havana-based European hotelier
- said the number of tourists in the first half of 1992 fell 60% from a
- year earlier.
-
- Because of Washington's three-decade-long economic embargo, U.S. tourists
- aren't officially allowed to visit Cuba, although they can get there
- via Canada or Mexico.
-
- Benetton is also considering opening a factory to produce shoes and
- T-shirts in Cuba through a joint venture with a state agency. "The discussions
- are still very preliminary, and the factory stage of the deal would likely
- happen far in the future," Pollini said.
- 6 01 AM
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