"The baton passes to my son Alessandro, who will become chairman," he told Italian newspaper the Corriere della Sera in an interview. "After a run that has lasted 47 years, I will resign Tuesday from my duties in the company founded with my brothers and sister."
Alessandro Benetton, 48, currently serves as vice chairman.
Since its establishment, the clothing group has grown to 6,000 stores in 120 countries and produces more than 150 million items for its three brands -- United Colors of Benetton, Sisley and Playlife -- each year.
Though Europe's economic woes and higher cotton prices hit the company's bottom line last year, Luciano Benetton expressed confidence in his son to keep the brands on track.
"The challenge is always the same: do, imagine, innovate. That's what an entrepreneur must always do," the 77-year-old said.
Luciano Benetton, Benetton, United Colors of Benetton, Corriere della Sera, Alessandro