Spanish Fashion Attention Shifts To Middle East Asia

Spain's fashion retailing industry is sluggish, Custo Barcelona, Saez Merino and Coronel Tapiocca have been closing up poorly performing retail stores. As for Mango and Inditex giants, new strategies are being implemented to increase profits.

Both Mango and Inditex pay more attention to the international market, especially in the Asia Pacific region, Eastern Europe and the Middle East.

On the other hand, Esprit, which is listed in Hongkong, grasps the opportunity of lower Spanish rents and is keen to expand its business in the European market. The main force provides low price fashion for young consumers.

These successful international brands can be used as a strategic model for Hongkong suppliers to create opportunities.

According to its international market development plan, Mango opened two new stores in mainland China in September, the first shopping mall in Sanlitun, Beijing, covering an area of 417 square meters.

The second is located in 353 square, Shanghai, with two floors and an area of 710 square meters.

The property was built in 1930s and has a rich architectural art style. It matches Mango shop layout very well.

In 2007, the mainland market accounted for only 2% of the total Mango chain stores, but the group seemed confident of the mainland market. In recent months, it has set up shop in Kunming, Shijiazhuang, Shenzhen, Tianjin, Wuxi, Nanning, Hangzhou, Ji'nan, Zhengzhou and Fuzhou.

In addition, Mango management also has new ideas to open Mango Touch shops in Andorra, France and Russia, and to sell Mango Series in airports such as Hongkong, Gatwick (Gatwick), Dusseldorf (Dusseldorf), Munich and Madrid to attract international travellers to patronize them.

Hongkong analysts expect that Mango will continue to expand its international customer base, but in view of uncertain demand, it will reduce inventories and lower wholesale prices.

Although the market prospect is unknown, it does not prevent Mango from launching the new men's fashion series HE.

So far, Mango's strategy has been very successful. In October, it set up the first HE brand chain store in Barcelona, and will expand to Madrid, London and Paris in the future.

Mango is more focused on the Middle East, looking for long-term opportunities for expansion.

The company announced plans to open more than 10 stores in Iran and Iraq in the next 5 years, and will initially be located in Tehran and the city of Ireland.

Inditex to play the advantage of vertical integration, according to the report released by JP Morgan analyst in October, Inditex is another enterprise that has strong furniture and can withstand the global consumer market slowdown. Morgan

The textile group has the largest chain fashion company Zara in the world. Its shops are distributed all over the world, and only 35% of the businesses come from Spain.

According to the report, Inditex expects growth of 15% this year, up 11% in 2009, slightly below the initial forecast of Morgan, but still good in terms of global standards.

Inditex grew by 9% in the first half of the year. Analysts believe the company is strong enough to withstand the slowdown.

Inditex acquired the GAP of the United States and Sweden's H&M, belonging to the middle class. Currently, there are about 3900 shops in 70 countries.

The strategy of Inditex is to set up flagship stores in a place that has been visited in advance, and then set up other smaller shops to sell relevant brand products so as to create scale profits and increase profits.

Inditex can implement brand diversification, which depends on the principle of vertical integration, and is handled by design, production, logistics and sales.

Front-line salesmen provide fashion designers with information on fashion sales.

The company rarely advertised, and the appearance of the shop was the interface between the company and its prospective customers.

Spain's rents are dropping, and Spain's clothing industry is looking at the world. Esprit expands the Spanish and Italy markets, especially targeting young consumers who favor the mid priced products and the keen touch of the tide.

He first set up shop in central Barcelona.

According to reports, President Thomas Grote said that the Spanish and Italy markets belong to the priority development target. The group will wait for the opportunity when the market shrinks, and lease the retail locations at the appropriate price when the market stabilizes.

The financial crisis has accelerated the restructuring of the Spanish apparel industry.

Data from employers' organization Acotex show that overall sales of products declined by 12% between 1 and August this year.

In the financial crisis, the first victim was Saez Merino, which produces Lois denim clothing.

Another brand fashion company, Caramelo restructuring management team, fired 20 employees and is considering closing its main store in Barcelona.

There are rumors that the company is in financial difficulties and is in arrears.

Coronel Tapiocca closed about 12 shops, including the first store opened in Madrid.

Adolfo Dominguez's profits fell by about 70%, forcing the company to reduce the number of shops planned.

They are also considering whether they should renew the shops which are almost full.

Yang Jing: editor in charge