news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

The Spanish fast fashion brand Mango is favored by many office workers because of its elegant style, comfortable wearing, high cost performance, and consumers generally think that the quality is very good. The brand entered China as early as 2002, a few years earlier than its "Spanish compatriot" ZARA, and it can be regarded as the fashion enlightenment of many people. Recently, Mango released its operating data for the first half of this year. The brand's sales increased by 6.3% to 1.543 billion euros, setting a record for the brand's first-half revenue in 40 years. Its revenue growth trend performed well in all categories and channels.

By category, women's clothing grew by 4% to its highest revenue in history, accounting for 79% of total revenue, men's clothing grew by more than 21%, and children's and youth clothing grew by more than 11%. By channel, physical stores achieved double-digit growth, and online channels grew slightly, accounting for nearly 33% of the brand's total revenue. Mango plans to achieve a revenue target of 4 billion euros by 2026 and open more than 500 new stores in the next three years, and it is expected to exceed 2,800 retail points by the end of 2024.

Mango was founded in 1984 and is headquartered in Barcelona, ​​the second largest city in Spain. It is one of the world's leading fashion groups. As early as 2002, the brand entered China, a few years earlier than GAP, H&M, and ZARA, and almost coincided with the time when Uniqlo entered China. In 2013, at its peak, the number of Mango stores in mainland China reached 200. However, just one year later, its stores began to shrink significantly, once reduced to more than 50. In April last year, the brand closed two stores in Beijing Gemdale Plaza and Huiju. So far, according to information on Mango's official website, the brand only has one store left in China, located in Yantai.

According to information on Mango’s official website, the brand has only one store left in China, located in Yantai.

Although there is only one store left, Mango's global supply chain layout is still strong. Its 2022 financial report shows that the brand cooperates with 663 factories in Turkey and 651 factories in China. In addition, Mango has 6 satellite distribution centers located in China, Spain, and the United States.

Compared with other fast fashion brands, Mango got up early but arrived late. GAP, H&M, ZARA and others started to expand rapidly after entering China. According to financial reports, in 2015, ZARA had more than 160 single-brand stores, and the total number of stores in China of Inditex Group, to which ZARA belongs, reached more than 500. By the end of August 2015, Uniqlo had also expanded to 387 stores in China.

According to a previous report by Nandu, ZARA's parent company Inditex Group released its first quarter financial report for fiscal year 2024 last month. In the three months ending April 30, 2024, the group's sales increased by 7.1% to 8.2 billion euros, an increase of 10.6% at a constant exchange rate. Although this growth rate has slowed down from last year's 15%, it still exceeded analysts' expectations, once again proving Inditex's strong competitiveness in the fast fashion market. As of the end of the reporting period, Inditex opened new stores in 28 markets around the world, while the number of global stores decreased by 103 to 5,698. The group's goal is to increase sales by about 5% annually between 2024 and 2026 by expanding its share in the existing 214 global markets, while increasing online sales.Previous report: Zara's parent company's revenue soared in the first quarter, and it plans to expand live streaming to the European and American markets

Mango is not without envy when seeing its friends develop so well, and has thought about catching up. It is reported that in 2019, Mango signed an agreement with Hangzhou Jingzhe Clothing Co., Ltd., hoping to accelerate its expansion in China through cooperation with local companies, and at that time gave a goal of "opening about 16 new stores in the next few years." In 2021, Mango once again adjusted its development strategy in China, announcing the suspension of its offline store expansion plan and investing more resources in online e-commerce platforms. However, from the current situation, Nandu reporters found that Mango's online e-commerce only has Tmall flagship stores and JD flagship stores, and WeChat mini-programs and Xiaohongshu stores have not been launched.

Screenshot of Tmall flagship store.

Screenshot of Xiaohongshu.

Mango's Tmall flagship store has 3.63 million fans, while Uniqlo and ZARA's Tmall flagship stores have more than 28 million and more than 24 million fans, respectively, with a large gap. JD's flagship store has only 108 followers, and the products on sale have only 1-5 reviews, which is almost negligible. Looking at social media, the official account of Mango on Xiaohongshu has less than 2,000 fans, and although the official WeChat public account is still in operation, it has only posted two tweets this year. On the contrary, there are more than 330,000 outfits shared about Mango on Xiaohongshu. Many Xiaohongshu netizens regret that Mango is gradually withdrawing from offline channels, saying that its design and quality are better than other fast fashion brands. On the other hand, for example, ZARA, in addition to offline stores, customers can also make online purchases through the official website, mini-programs, APPs, as well as Tmall and Douyin. Four years after entering Douyin, ZARA tried to sell goods live in the form of a catwalk on Douyin in November last year, and the cumulative number of live broadcasts was close to 1 million, which triggered heated discussions in the industry. ZARA subsequently announced that it would expand this successful experience to the UK, US and European markets later this year.

In recent years, many cost-effective brands have emerged in China, and young people have more choices, leaving less and less space for foreign fast fashion brands. Moreover, Mango has problems such as insufficient product innovation, serious homogeneity, and slow pace of new products, which cannot fully meet the needs of the younger generation for fashion products. At present, Tmall flagship stores have become the main channel for brands to communicate with Chinese consumers. The lack of experience provided by offline stores is also a huge gap between Mango and other fast fashion brands. Of course, other fast fashion brands also have a history of closing stores. For example, ZARA’s three sister brands-Bershka, Pull&Bear and Stradivarus closed their Tmall flagship stores and offline stores around 2021. Old Navy, a fast fashion brand under the GAP Group, failed in China in 2020, and the main brand GAP sold its Chinese business to Baozun E-commerce, a domestic e-commerce agency. Esprit also closed all its stores in Asia, including China, in 2020.

Written by: Nandu reporter Wang Xin