Mango'S High Price In China Stores Or The Main Reason For "Marginalization"

< p > fashion industry is always a few unhappy families. Fast fashion can not escape such a rule.

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< p > Mango, a fast fashion brand from Spain, has been going downhill lately.

Compared with ZARA, a competitor from Spain, Mango, who has the advantage of channel, has recently been exposed to the news of closet closet.

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< p > an industry insider told reporters that Mango products are mediocre, lack of fast fashion characteristics and lack competitiveness.

Because of the structural problems of its products, if there is no significant change in the future, it will be a helpless choice to withdraw from the Chinese market.

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< p > < strong > many cities frequently withdraw shop < /strong > /p >

< p > Zara, like Spain, opened the first store in China in 2002. It has 200 retail outlets in 80 cities in China in ten years, and Mango is the fastest.

Mango chief executive of Greater China said in 2012 that in the next three years, 500 retail outlets will be opened in China, covering more than 100 cities.

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< p > however, in the background of 71 new stores and 339 new stores in UNIQLO and H&M last year, "withdrawal" has become a helpless action of Mango in China.

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< p > it is understood that in the Beijing market, Mango has been removed from shops in Dongzhimen Ginza department store, Chongwenmen new world department store and Dazhong monk Shang Ke department store, and Wuhan, Dalian and other places have also heard the news of the closure of Mango counters.

Recently, people in the industry have reported that Mango has seen many dismantling in Nanjing and Shanghai.

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< p > for this, the reporter telephoned his related staff anonymously, and the reply was that the Shanghai area did not close shop.

However, consumers who are concerned about Mango say that a store in Wujiaochang, Shanghai has long been evacuated.

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< p > in recent years, the Chinese market has become a fast developing market.

Not only Zara, UNIQLO, H&M, relatively weak development of GAP, etc., have announced the new development plan in the Chinese market.

However, for the development plan of Mango in the Chinese market, EnricCasi, general manager of Mango brand, seems more cautious. He said the company will conduct a comprehensive study and planning of the Chinese market to identify future development plans.

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"P" "after years of development blocked, Mango will adjust its investment and business strategy in China. It will be more cautious in dealing with the Chinese market, and make plans in many aspects such as channel, mode, price, business and positioning."

Du Yanhong, a retail researcher at CIC, points out that Mango is bound to slow the pace of expansion in China at the present time.

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< p > < strong > lose similar brands < /strong > < /p >

< p > despite the rapid development of foreign fashion brands in China in recent years, the rising cost of operation and the increasingly fierce market competition make the operation of fashion brands not optimistic.

Du Yanhong told reporters that although Mango was the first fast fashion brand to enter China and spread its marketing outlets all over the country, its price is relatively high and its category is relatively small, making it not very popular with consumers, and the rise of cost makes it more difficult to operate.

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"P" analysts point out that a flat product and a lack of price advantage may be the main cause of the "Marginalization" of Mango.

Some consumers complained to reporters that Mango's < a href= "http://www.91se91.com/" target= "_blank" > clothing < /a > the quality and style are not new, but the price is lower than H&M.

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< p > "Mango is a bit of a sensation, and there are not many stores. In fact, there are not many characteristics in fast fashion brands."

In the opinion of Shao Ligang, general manager of the nine party consulting and management, Mango is fast fashion, but its positioning is a problem.

"For example, fashion style is not as good as Zara, and it is not as good as UNIQLO in terms of category, scale and speed. It is not cheaper than C&A and H&M, and has no distinctive features."

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< p > in addition to the low cost performance of products, more analysts are targeting Mango's business model.

In the tide of "withdraw shop", its agent mode also appeared the problem of poor profit.

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"P" and "Spanish brothers" Zara have been adhering to the direct battalion instead, Mango is more franchising.

Reporters learned that 60% of the 2600 shops currently owned by Mango are franchised and 40% are held independently.

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< p > Agency mode is often easier to open the market, compared with direct business, the cost of the brand will be reduced a lot.

However, there are advantages and disadvantages. In the view of analysts, to seize the terminal channel, brand players need to give preferential terms to the channel providers to erode their profits.

In addition, the addition of agents makes the intermediate cost too high, and it is impossible to form a mechanism conducive to inventory control between enterprises, resulting in large inventory and long account period.

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< p > for the changing Mango, insiders tell reporters that the outlook is still uncertain.

"Mango has not been very optimistic about the development of China in a long time, including shop display has not changed much."

Shao Ligang believes that if the subsequent Mango did not make a big change, then leaving the Chinese market would be the last choice.

"In the final analysis, the structure of products."

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