Why MANGO Failed To Come Early Was Useless.

Shopping malls, like battlefields, never have fixed rules.

Only when the market reacts in a timely manner and goes ahead of its competitors can it be a winner.

The same sales strategy will only put the enterprise in a dangerous situation, not advance or retreat.

The same as the Spanish fast fashion brand, which is four years earlier than ZARA, has entered the Chinese market MANGO, why is it far less developed than ZARA? MANGO has been acting in the domestic market as an agent + direct mode. Under the MANGO line, 60% belong to the franchising nature and 40% are direct battalions.

However, there are many drawbacks in this model.

In 2002,

China's first store opened.

As the third largest clothing brand in Spain, MANGO has been ambitious to make a big picture in the Chinese market.

However, four years later, Spain's ZARA came out of the world and caught MANGO unprepared.

Whether it is the number of stores, sales or customer reviews, ZARA exceeds MANGO.

In order to seize the terminal channel, brand players need to give preferential conditions to channel providers, which will erode brand profits to a certain extent.

And had several bad effects:

1, 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.

2, the weakening of MANGO market influence may also cause many agents to abandon MANGO, resulting in a sharp decline in the number of stores in China.

And ZARA has been using direct camp mode.

It is very cautious about the location of stores and the operation of Direct stores.

ZARA firmly controls the inherent risks of garment industry through four links:

1. buyers of large scale copy;

2. design to the upper shelf 12 days of fast loading cycle, try not to replenish the goods.

The 3. is a lot of less and scarce marketing, and it does not want to sell on a single item.

4. timely feedback on terminal sales information.

The above four points fully demonstrate the top-level design of ZARA business mode: frequent sales promotion, no pursuit of explosive volume, flat sales volume and profit fluctuation.

All direct stores must follow this guideline, which ensures the quality and profit of each ZARA store.

Even so, ZARA is not without inventory, but it is more effective in sharing the risk of the clothing industry, rather than a large number of stocks on a small number of funds.

Lang Xianping, a famous economist, once pointed out: "successful enterprises after 2000 are not created by innovation, but by rapid reactions."

It is not difficult to see that the "quick response capability" to the market will become the key to measure the core competitiveness of modern enterprises.

For the garment industry, which is known for its "timeliness", "popularity" and "seasonality" constitute the salient features of clothing products. Garment enterprises must be able to maintain a firm foothold in the increasingly fierce market competition in order to achieve "efficient information feedback and sensitive market response".

The unique ability of ZARA is that it is the only fashion company in the world that can distribute garments produced in 15 days to more than 850 stores worldwide.

Thanks to ZARA's sensitive supply chain system, ZARA's lead time has been greatly improved.

(leading time is from design to the time of selling clothes on the counter.

China's clothing industry is usually 6~9 months, international brand names can generally reach 120 days, while ZARA is the shortest, only 7 days, usually 12 days.

ZARA launches about 12000 kinds of fashions in a year, and the amount of each fashion is generally not large.

Even with the best selling style, ZARA supplies only a limited number, often only two pieces in one store, sold out and not replenished.

Through this "manufacturing shortage" way, a large number of loyal followers have been trained.

"Multi style, small batch", ZARA achieved a breakthrough in economic scale.

Older MANGO seems to have failed to find their core strengths.

In response to the rapid changes in the market, MANGO's response is slow, or even ineffective.

Every time you pass a MANGO store, you will find that the inside items are on sale, and they are all the older ones.

MANGO seems to have been playing a low price strategy compared to ZARA's new product changing market.

However,

It is not omnipotent. For MANGO, simply relying on price promotions obviously can not help companies tide over their difficulties.

With the fast fashion market becoming saturated, MANGO keeps worrying. With the shrinking of the offline market, how long will the MANGO that will not increase profits depend on the low price in the future.

If you want to have a fight in the fast fashion field, you will not be able to rely on price cuts. You should make an essay in design and work hard on the category. Besides, whether the business mode can be changed properly to match the current slow growth is also a way to consider.

MANGO has been very vague since its entry into the market.

In the fast fashion competition day by day, the pressure of MANGO is self-evident. From the past, we can also see MANGO's efforts to stimulate consumption.

For example, the brand dominated by women's clothing, in 2013 launched children's clothing, sports underwear product line and big code clothing brand; 2014 also introduced a series of clothing for young people and mature women.

However, the more positioning, the more it will make itself look like nothing.

For women over the age of twenty, the clothes of MANGO are somewhat old-fashioned. For women aged more than 30, MANGO is not the brand they often consume.

This embarrassing position has led to a decline in MANGO sales.

Compared with the ZARA of the market, MANGO seems to be deserted.

Compared with the ambiguous positioning of competitors, ZARA is much more clear and always has the reputation of "first-class design, second class fabric and three price".

ZARA is very popular with fashion young people all over the world. The designer's brand is superior in design, but the price is even lower. Simply speaking, it is to let the populace embrace High Fashion.

Micro-blog, a fashion blogger, often recommends ZARA clothes. ZARA has become a synonym for the young girl market.

The average customer goes to ZARA17 times a year, while the other brands only have 4 times.

It has been said that at present, traditional industries are in the situation of sunset.

In fact, there is no sunset industry in the world, and only the setting sun enterprises and the sunset people, from the volume expansion to the quality breakthrough, is the last mile of business.

The company that will get through the last mile will succeed, and it will only become a stepping stone for successful enterprises.

Let's wait and see whether MANGO can reclaim its momentum and go beyond the ZARA of its peers.