Mango’s Spring/Summer 2006 collection is now hitting the travel retail channel |
SPAIN. Fast-growing Spanish fashion chain Mango is setting its sights on the travel retail market following the recent opening of its first two free-standing airport stores, at Madrid Barajas and Mexico City.
The company’s overall strategy is to be “present in every city in the world” and now it aims to bring its brand of high-street women’s fashion to the travel retail channel.
Racking up sales of more than US$1.3 billion in 2005, Mango is highly respected in the fashion industry for its super-fast stock turnaround. Thanks to its proprietary logistics system, it is capable of distributing 30,000 garments an hour to its international chain of 868 stores. This chain is growing just as rapidly – the company opened an impressive 118 new stores during 2005, a combination of free-standing shops, outlets in shopping centres and shop-in-shop/corners.
Mango’s biggest markets in Europe are France, Germany and the UK, and Italy is said to have performed very well last season. European markets are becoming very strong as the brand gains more recognition, while elsewhere in the world the Middle East, Asia and Eastern Europe are gaining ground.
New international markets Mango entered during 2005 were as diverse as Egypt, Armenia, Albania, Panama, Colombia, Bosnia-Herzegovina, Finland and Canada. This year, the company is set on entering the US domestic market – the glittering prize for fashion retailers. China is also set for rapid expansion. Other new markets for 2006 will include Syria, La Réunion, Mauritius, Monaco and Uzbekistan. The forecast number of openings for this year is approximately 100 stores.
Travel retail plans
Talking to The Moodie Report about the company’s new push into travel retail territory, Nina Lundgren, Business Development Manager International Expansion Travel Retail, believes the channel offers great potential.
Said Lundgren: “As the profile of the international traveller is in constant change, we have great faith in the growth potential for high street fashion in the travel retail industry. We are used to accepting the challenges of expansion in new countries and channels, and we are ready to evaluate the future possibilities for Mango in travel retail.”
Mango’s first two airport stores have traded at Madrid Barajas since the beginning of February 2006 and Mexico City since December 2005. They are both free-standing and each occupies more than 140sq m, which the firm considers a good size. Lundgren added: “However, as we are in an initial stage of expansion, we are open to evaluating the possibilities that may arise. We would like to be flexible in our approach to developing the concept within the travel retail channel.”
The fashion collections
Mango specialises in retailing up-to-the-minute fashion clothing and accessories targeted at the “urban, professional and independent woman who enjoys fashion”. The brand offers complete collections that are presented in two seasons: Spring/Summer and Autumn/Winter. These collections cut across three main lines, which are dubbed the “pillars” of the brand:
SUIT/EVENING
This line brings together the most elegant, updated and sophisticated silhouettes of the collection. The Suit line is intended to dress the woman for her professional activities, while Evening garments are reserved for special occasions.
CASUAL/SPORT
This line is described the “funkiest, sexiest and most playful”. The Casual designs are practical and comfortable, while the Sport line adds an informal and youthful touch.
MNG JEANS
The MNG Jeans collection includes a complete collection of denim and also matching tops.
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Mango’s first two airport stores have traded at Madrid Barajas (pictured) since the beginning of February 2006 and Mexico City since December 2005 |
Accessories and new watch collection
Like many fashion houses, Mango is paying more attention to accessories. The firm is expanding its designs into footwear, bags, swimwear, lingerie (launched in Autumn/Winter 2005), jewellery and “all types of accessories to complement the garments in the collection”. In addition, there are three fragrance lines, and the firm is looking at launching more items.
In November 2005, the new retail concept “Mango Touch” opened its doors in Madrid, a speciality store that showcases the accessory range.
Accessories have become an important part of the company’s collection and currently represent 20% of total sales, said Lundgren.
This is why Mango will launch a new range of watches in 2006, developed in co-operation with the Swatch Group. The first to receive the watch collections will be stores in the UK, France, Germany, Italy, Portugal and Spain. In a second phase, starting in 2007, the brand expects to expand to Hong Kong, Singapore, Japan, Mexico, Austria, Belgium, the Netherlands, Greece, Switzerland, Andorra and Middle East.
Mango has also recently launched a limited-edition apparel line made with fine fabrics and materials such as cashmere and silk. The Exclusive Edition range is available at key stores worldwide.
A major innovation is the firm’s policy of introducing new models adapting to the local needs of different markets.
Key Mango facts and financials
– Founded in 1984; international expansion began in 1992.
– At the end of the 2005 financial year, the Mango group was represented in 81 countries with 868 stores. The forecast number of openings for 2006 is approximately 100 stores.
– Turnover for the Mango store chain in 2005 totalled €1.144 billion, up +8.4% on 2004 (figure represents retail sales minus VAT for Mango owned stores and franchises). Turnover of the Mango/MNG Consolidated Group was €881 million (retail sales excluding VAT of company stores, plus wholesale sales to franchises), representing an increase of +5.9% compared to the previous year. 75% of turnover corresponded to foreign markets, and the remaining 25% to the domestic market.
– The forecast turnover for 2006 is €1.2 billion for the Mango chain and €925 million for the consolidated group, representing a +5% increase on 2005.
– Mango employed a total of 5,566 staff at the end of 2004, around 1,400 of whom work in the headquarters at Palau-solità de Plegamans, Barcelona, Spain.
– Design, distribution and retail are 100% in-house activities. Production is outsourced.
– Mango’s hi-tech logistics system is claimed to set the standard in the European textile sector. Its goal is to ensure that each point of sale across five continents has the stock levels it needs at all times.
For details, contact Nina Lundgren, Business Development Manager International Expansion Travel Retail, Punto Fa, S.L. Sociedad Unipersonal, C/ Mercaders 9-11, Pol. Ind. Riera de Caldes, 08184 – Palau-solità i Plegamans, Barcelona, Spain, tel: +34 938 602 486; fax: +34 938 60 22 51, e-mail nina.lundgren@mango.com Visit www.mango.com
