Spain'S Fashion Brand MANGO'S Ambition In China: From 2.7% To 4%

With international luxury

In 1984, the Spanish fashion brand MANGO opened its first store in Barcelona's Grand Avenue.

At that time, the founders may not be able to imagine that after more than 20 years of development, today's MANGO has more than 1500 stores in 100 countries.

The MANGO brand will be held in Beijing for the first time.

Mr. DavidSancho, vice president of MANGO international expansion department, said: "on the occasion of the rapid growth of MANGO in the Chinese market, the number of retail outlets and shops has chosen this fashion capital of Beijing to hold this grand event.

Chinese brands of international brands

In 1992, MANGO opened two shops in Portugal and began to move to the world. Currently, it has more than 2100 shops in 105 countries and has become one of Spain's most famous international fashion brands.

In 2002, MANGO came to China.

The new European style, rapid product replacement and high end positioning made MANGO quickly occupy the relatively blank mainland market at the speed of at least 6 stores a year in the second tier cities.

"From 2004 to 2005, the brilliance of MANGO in China has made many Chinese local schools a model of learning.

However, for MANGO, 2006 became a turning point in its operation in China.

This year, ZARA, also from Spain, opened its first branch store in Nanjing West Road, Shanghai.

In 2007, the Swedish brand H&M was also stationed in Huaihailu Road, Shanghai, which triggered a panic buying rush on the day of its opening.

The concept of fast fashion response and big price parity has been widely used in the media.

C&A and next, which will enter the Chinese market later, will make the fast fashion market in mainland China more competitive.

When asked by the author how to deal with the impact of her rival, DavidSancho said: "compared with ZARA and H&M's direct flagship store concept, MANGO's channel structure is relatively flexible. There are hundreds of thousands of square meters of Direct stores, there are more than 100 square meters of community stores, and more outlets are convenient for consumers to purchase."

MANGUO brand image benefits from the image of the people's shop, and always assumes that consumers create the most comfortable shopping atmosphere.

Consumers can also get more help and advice in MANGO stores for how to dress.

This kind of shop service is our advantage for our competitors. "

In the past two years, in addition to the more open shopping environment and brighter terminal image, MANGO's stores in China have also been strengthened by consumers' more concerned products.

Although MANGO's design team has not changed much over the years, after years of running in, MANGO's distribution manager in China has been able to more accurately grasp the domestic fashion trends and consumer preferences. The return and inventory rates of selected garments are decreasing year by year, and of course popularity and praise are higher.

In addition, according to DavidSancho, the concept of MANGO has always been derived from its unique design, excellent workmanship and unified and consistent brand image.

The group has analyzed, adapted and applied the brand's daily wear demand of the modern urban women in all the countries in the world, which is one of the keys to our business success and international reputation.

When it comes to the impact of the rapid development of China's local fast moving brands on the marketing of MANGO in China, DavidSancho has repeatedly emphasized the internationalization of MANGO and the frontier concepts of Spanish fashion.

Symbiotic channel concept of common prosperity

In order to get a better and better development in the mainland and the whole Asian market, MANGO has also made corresponding changes in recent years.

In August 2008, MANGO opened the first direct store in the mainland of China at the shopping center in Sanlitun, Beijing. After that, it opened two outlets at the end of 2008 and the 353 Music Plaza of Nanjing East Road in Pudong, Shanghai in March 2009.

Among them, 353 square store is the flagship store in Shanghai. It is also the fiftieth branch of MANGO in the mainland of China, with an area of 710 square meters.

If you count the franchisee opened by Wanda Plaza in Wujiaochang, Shanghai in May 2009, in less than a year, MANGO has launched 4 new stores in Beijing and Shanghai, and the area is more than 400 square meters. The shops are located in the mature commercial circle of their cities, and have adopted a more bright and bright decoration style. The exhibition area is more open, the commodity category is more abundant, and the display and matching of the display window is also significantly enhanced.

When someone in the industry predicted that MANGO would gradually implement the strategy of starting a large store direct operation, the number of franchising teams was also increasing with the planned opening of flagship stores in the next two years.

"Before 2008, we adopted the franchise system management in China. With the increase of the consumption power of the Chinese market, the group began to invest more energy and financial resources in China.

To this end, we opened a flagship store in Beijing in 2008.

However, MANGO is not going to completely change the franchise model that we are best at. Apart from the Spanish market, the number of MANGO stores and outlets in the world will remain at 70% and 30%, while in China, it will remain in the half and co ownership development.

DavidSancho explains.

According to Song Yun, general manager of MANGO Greater China, "MANGO's channel strategy in China is to set up a direct store in a second tier city and operate in a three or four tier city by franchisees.

The purpose of doing so is due to the complexity of the Chinese market.

But for franchised stores, we will conduct unified management, training and services to ensure the quality of the brand.

According to MANGO reports, in the 2010 fiscal year, the Chinese market accounted for 2.7% of the MANGO global market turnover, and this year, the Group expects to expand the proportion of Chinese market turnover in the global market to 4%.

"So far, we have opened 150 retail outlets in 43 important commercial cities across the country, and we expect to achieve 200 in the near future.

The expansion of terminal numbers will further expand the brand's influence and market share in China.

DavidSancho describes the ambition of China from Spanish fashion.

Optimistic about 3 years and 50 million of the market

The author: now that there are more and more fast fashion brands entering China, what advantages do MANGO have compared with them?

DavidSancho: compared with other brands, MANGO regards China as the most worthwhile investment market in the world. Our idea is that shops can expand to your nearest living area and have MANGO shops.

We are more flexible in the expansion of stores than other brands. We can have flagship stores in such a large shopping mall such as Oriental Plaza, or 100-200 square meters of small shops in department stores.

In product design, we still have more confidence in our design. This is also our strong point. We also have a good grasp of popular elements.

In terms of store operation, we can also provide services that are suitable for local customers. We continue to have the global service concept, which is more humane than self-service.

Author: what do you think of Chinese consumers?

David Sancho: now the most powerful purchasing power in the world is in China, so it can explain why so many world-famous luxury goods and fast food products are developing vigorously in China, and the shops are developing very fast. Many brands are putting their energy into the Chinese market.

MANGO's Chinese customers are more fashionable, professional and urbanized women, who will expand rapidly in the next three to five years.

In terms of consumption level, the Chinese middle class consumers will increase to fifty million people in the past three years. I believe this market will be very large.

The author: on the one hand, D&G and other brands withdraw from the Chinese market, while MANGO and other fast fashion brands are constantly expanding. Do you think this illustrates the problems in the Chinese market?

David Sancho: the prerequisite for entering the Chinese market is to be well prepared. The 2002-2008 year is the franchise system. 2008-2010 years have made enough preparations. I think many brands have been withdrawn from China because they can not keep up with the operation of the three or four tier cities. Now we mainly use one second tier and 22 cities as direct battalions. The three or four tier cities are franchisees. They have very rich experience in brand agency. This is why MANGO is doing well as an international brand.