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Guan Dian 40%: MANGO Has Been In China For Ten Years.

2013/8/17 11:09:00 10

MANGO Entry Fast Fashion Brand MANGO Shop Tide

Spain a target= "_blank" href= "http://www.91se91.com/" > dress < /a > retailers MANGO MNG Holding SLU MNG, as the first fast fashion brand to enter China, the road of operation now seems to be narrower and narrower.

MANGO has recently been exposed to the news of dismantling stores.

In Beijing alone, the MANGO counters of Dongzhimen Ginza department store, Chongwenmen new world department store and Dazhong Temple Shang Ke department store have been removed, while some MANGO retail stores such as Wuhan and Dalian have also been closed down.

According to MANGO's official website, there are 115 stores in China, which shrank by 40% from 200 retail outlets in early 2012.

MANGO almost once occupied the half of the national main department store channel mode by relying on the joint mode. When ZARA, H&M, UNIQLO and other international a target= _blank href= "http://www.91se91.com/" > clothing < /a > chain intensified the establishment of Direct stores in the domestic frenzied enclosure, and the first entry brands such as MANGO and Esprit were trying to break away from the form of agency joining, and began to set up direct stores in the second tier cities of the gold commercial circle in China, but encountered "helpless results".

mode embarrassment .

MANGO storefront business has not been as good as H&M and ZARA, the inventory pressure is very large, the receivables cycle is longer, and sales can not rise, so it will advance the discount, and lower to 77% off is also to "clear up the inventory quickly".

"in the next 3 years, 500 retail outlets will be opened in China, covering more than 100 cities."

In 2012, MANGO chief executive of Greater China once vowed to declare to the outside world.

Instead of "expansion" in dreams, instead of shutting down shops.

according to the data displayed by the official website, there are only 115 stores in the current "a href=" http://sjfzxm.com/news/index_c.asp "MANGO < /a", which shrank by nearly 40% from 200 retail outlets in early 2012.

The reason for the closing of P seems to be self-evident. The two words of achievement become a sharp sword hanging on top of MANGO.

Fast fashion brands often sell goods in a discount sale way during the season.

In 2013, MANGO's clearance signboards hung more than 1~2 weeks earlier than competitors, and the discount was stronger than ever.

according to the agent, the business of MANGO storefront has not been as good as H&M and ZARA. The inventory pressure is very large, the receivables cycle is longer, and sales can not start. Therefore, the discount will be advanced, and the discount to 77% off is also "to clear up the inventory quickly".

in addition, compared to ZARA and H&M, the best location is in the core business circle. MANGO is mostly narrow from shop display to fitting room, which is not good for customers' experience.

P has always been a focus on franchisees in China, and when ZARA, H&M and UNIQLO have opened two layers of experience shops in women's clothing, men's wear, children's wear and accessories in the prosperous area, MANGO is obviously behind the MANGO.

After P opened its first store in China in 2002, 200 retail outlets were distributed in 80 cities in China in 10 years. MANGO has announced for a long time that the number of stores and outlets in China will remain at 75% and 25%.

but this shop speed is far from the ZARA and H&M.

Take H&M as an example. Last year alone, its number of new stores in China reached 339.

MANGO first joined in China, and this mode also helps MANGO quickly open the market. However, the strength of dealers is often uneven, and the manpower and financial resources invested in opening and operation are limited. No matter location, scale, personnel training or market promotion, it can not compare with Direct stores.

The direct disadvantage of small shops is that the display is limited and it is difficult to be neat and beautiful. The shopping environment is crowded and it is difficult for the consumers to stay for a long time.

"we will continue to expand the balanced growth mode between Direct stores and agents.

Today, the distribution of distributors directly owned by agents and companies is 60% and 40% respectively, and the gap will be further narrowed in the future.

The expansion of the company's direct store is mainly aimed at the first tier cities, and the remaining areas are covered by agents.

MANGO vice president Daniel L PEZ told reporters.

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Expand shop to save oneself

"P" has always been to be safe, MANGO in China using the classic franchise mode, inadvertently also snubbed the Chinese market, eventually leading to MANGO is completely outdated, and then catch up with the cost of several times before.

P has been a relatively conservative strategy in the Chinese market since August 2008. Since August 2008, MANGO has opened dozens of Direct stores in Beijing and Shanghai. However, in recent years, fast fashion brands such as ZARA and H&M have come to the top of the list. In addition, the famous commercial circles such as Beijing and Shanghai have been strongly partitioned in the form of Direct stores. In September 2013, UNIQLO has opened second global flagship stores on the Huaihai side of the road. The 10 thousand square meter single store will become the largest flagship store in UNIQLO China.

At P, MANGO is no longer able to hold on.

It is understood that in September 2013, MANGO will also set up a new 450 square meter flagship store at APM shopping mall in Shanghai, and open the first H.E.by MANGO flagship store in Shanghai Kerry Center.

Compared to MANGO's first, "men's clothing" has long been a share in other fast fashion brands.

"just for MANGO women's clothing, the minimum area required for our main garments is 500 square meters. In China's new store, we will need more than 1500 square meters of storefront.

This is far ahead of our consistent pace of development in China.

It is for this reason that we have pformed China's existing stores to meet the needs of brands.

It will be allowed to enter independent stores in large shopping malls and downtown areas rather than corner of small shopping malls.

MANGO vice president Daniel L PEZ told reporters.

for MANGO, the curing of the Chinese market and the curing of thinking directly depend on the market share of MANGO in China.

it is understood that China's market share does not occupy a large share in the overall profit of MANGO MNG Holding SLU Consolidated Group. In 2007, the turnover of the Chinese market accounted for only 2% of the total turnover of MANGO group. In early 2011, the group profit fell by 60%, and made significant adjustments. First, the style tended to be casual, and two was 20% of the total price reduction.

after major adjustment, MANGO MNG Holding SLU Consolidated Group reported earnings of 1 billion 400 million euros in 2012, up 11% from 2011, while domestic revenue rose by 20%, while revenue growth benefited from international expansion. 82% of 2011's income came from the international market, and only 18% came from the domestic market.

In 2011, the sales revenue of e-commerce platform was about 36 million 200 thousand euros, up by 72%.

At P, Enric Casi, general manager of the brand, said that in 2013, MANGO hoped to achieve 20% sales growth target and open 300 shops.

Most of the new stores are open in Western Europe and Eastern Europe, and choose to enter Angola, Zimbabwe, Mongolia, Chile, Peru and other markets, and the number of shops that China can divide is after all a "virtual number".

Daniel L PEZ, vice president of P > MANGO, told reporters that in China, the company continues to expand its business and is about to launch a new concept of Megastore (large shopping center). There are several new brands in the existing MANGO women's clothing store: Men's brand H.E.by MANGO, children's wear brand KIDS, sports series INTIMATE& INTIMATE&, jewelry accessories, and clothing brands for mature women will be located in flagship stores in China's Shanghai and Beijing.

"for a long time to be safe, MANGO used the classic franchise mode in China, and it also inadvertently ignored the Chinese market. Eventually, it led to MANGO being completely behind the times. It would cost several times before catching up."

Yang Qingshan, a luxury research expert, told reporters.

"agency mode tends to open the market more easily, and the cost of brand operators will be reduced considerably compared with direct sales."

However, there are advantages and disadvantages. In order to seize the terminal channel, brand dealers need to give preferential conditions to channel providers to erode their profits.

In addition, the addition of agents makes the middle 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.

Yang Qingshan said.

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ten years itch > /strong > /p >

in the 2012~2013 fiscal year, closing shop decoration has become the common rhythm of fast fashion brands, and business mode and service innovation have become a similar theme in the future.

for the fast fashion brand, ten years is a good place.

In the financial year of 2012~2013, decoration has become a common rhythm, and business models and service innovations have become similar themes in the future.

it is noteworthy that in addition to MANGO, sales of Esprit in the US in the past 4 years have fallen by US $200 million, compared with 93 in last year's Esprit.

In the 5 possible parity clothing brands named by Forbes magazine, Esprit is on the list.

The Esprit brand is ageing, and the supply chain management is also backward, unable to adapt to the pace of its expansion, so that its parent company's global profitability has declined for 3 consecutive years and its management has been unstable.

P, also known as GAP, has revealed that the company's earnings fell by 40% to 365 million dollars over the same period last year, of which the North American market was even less optimistic. Sales of Group brands dropped by 3%~6% or zero.

Meanwhile, GAP group plans to close 189 U.S. stores in 2013, accounting for about 21% of the total number of stores in the United States.

The way to save P is to focus on emerging markets in China. Since franchising was launched in 2007, franchising models have been opened in the Middle East and Eastern Europe. The 4 shops in China are operated exclusively in the form of sole proprietorship.

Compared with the exploration of business models, quality problems as an inherent defect in fast fashion model genes should not be overlooked. Based on the consideration of cost control, these brands have excluded high-quality and long service fabrics in the design stage, especially with the increasing labor costs of Chinese foundries, and in order to maintain low-cost positioning, these brands have to further reduce the cost of raw materials.