First Net Loss Since Mango Brand Was Founded

In the increasingly competitive fast fashion industry, Spain was the first to enter China.

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In the market, the advantage is no longer, and is troubled by the increasing cost of pformation. Last year, Mango recorded.

Net loss for the first time since its establishment.

According to the world clothing and shoe net, in the 12 months of 2016, Mango sales decreased by 2.9% to 2 billion 260 million euros compared with the same period, and sales of Mango outlets decreased by 1.47% to 1 billion 668 million euros, while sales from franchised stores fell 6.4% to 592 million euros.

During the period, Mango pre tax profits plunged 54.9% to 77 million euros, but also recorded a loss of 61 million euros, and its net profit in 2015 was 11 million 870 thousand euros.

The picture shows the main key data in Mango2016.

The picture shows the main performance data for Mango2016.

The picture shows sales in various channels and regions in Mango2016.

Mango Spanish local sales rose 5.9% to 481 million euros, or 21.3% of total sales.

Other European Union sales fell 1.3 to 959 million euros, accounting for 42.4% of the total sales.

Sales in the rest of the region, including Asia, fell 9% to 819 million euros, or 36.3% of total sales.

Since 2013, Mango has proposed the expansion strategy of giant stores. Last year, Mango opened a total of 24 giant stores. At present, there are 191 giant stores in the world, with a total investment of 600 million euros, and its sales outlets in 110 countries worldwide have increased to 2217.

DanielL PEZ, executive vice president of Mango, said the giant stores cover all brands of men's and women's wear, children's wear and accessories, and consumers can have a better shopping experience than ordinary stores.

Thanks to the launch of Mango's 24 hour European delivery service and the global 3 day delivery service, sales of Mango e-commerce channels increased 25.6% to 294 million euros, accounting for 13% of total sales. In the future, more payment options and online services will be provided according to the actual situation in various regions.

The report also showed that Mango's official website had more than 397 million visits last year, of which more than 60% had been accessed from mobile terminals, proving that Mango's measures in digitalization are coming into effect.

Mango's emotional connection established by two-way communication between social media and consumers has also had a positive synergy effect on promoting Mango's electricity supplier sales.

However, compared with the main competitors, Mango still has much room for improvement in social media.

According to LADYMAX data, Mango currently has 7 million 80 thousand fans on Instagram, with an average of 1.6 points per post, while its main competitor Zara has 21 million 680 thousand fans, with an average of 100 thousand points per post.

Like Zara's parent company Inditex, Mango was founded in Spain in 1984 and is currently one of the largest family fashion groups in the world. Its total number of employees is 15730, and its headquarters is in Barcelona.

To comply with the trend of the season, the group will issue more than 18000 sets of garments and accessories each year. The company owns Mango women's wear, men's wear, children's and Violeta series.

In 2016, sales of men's wear, children's wear and XXX series Violeta increased from 14.7% in 2015 to 17.6% in Mango.

Earlier analysis pointed out that in the digital age dominated by social media, the fast fashion industry is changing faster and faster.

More and more brands can quickly copy and design inspiration from T. Based on the big data provided by the social media for retailers and trend analysis institutions, the trend of fashion can be accurately summarized to maximize the design process.

The optimization of supply chain has become a necessary condition for fast fashion. It keeps the endless stream of creativity coming to the shops and consumers from design drawings in time.

The efficiency of various links has promoted the shopping frequency of consumers. But nowadays, Mango and other traditional fast fashion are also beginning to feel a sense of crisis. In the face of competitors, they also need to face the challenges posed by the accelerated emergence of fast fashion providers such as ASOS and Boohoo.com.

The report of Fung Global Retail &Technologh provides three internal data of British retail business which is considered to be faster than traditional fast fashion, namely Boohoo, ASOS and Missguided.

Data show that Boohoo.com, ASOS and Missguided are now able to produce goods in 2 to 4 weeks, while Zara and H&M are 5 weeks, while traditional retailers need 6 to 9 months.

Misguided can launch 1000 new products every month and update the inventory once a day.

ASOS can also complete the product process within 2-8 weeks, with an average listing time of about 6 weeks.

From fast fashion to ultra fast fashion, traditional fast fashion seems to be aware of the problem and is concentrating more on online penetration and supply chain improvement.

Mango still has more than 75% of its factories in Asia. Most production processes are carried out in the mainland of China. Only 11.6% of them are produced in Spain.

Inditex group's production center is in Europe, and has production centers in Spain.

By contrast, Inditex group's brand has greater initiative and flexibility in terms of production efficiency.

According to LADYMAX data, in the three months ended April 30th, Inditex Group sales surged 14% to 5 billion 600 million euros, higher than analysts expected, and core brand Zara sales accounted for 2/3 of total sales.

Group gross profit also increased 14% to 3 billion 200 million euros, gross margin 58.2%, net profit rose 18% to 654 million euros.

During the reporting period, Inditex group has set up new stores in 30 regions. Currently, the group has 7385 outlets in 93 countries and regions.

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In the three months ended May 31st, H&M group's sales increased by 10% to 51 billion 400 million Swedish Swedish Crown around 5 billion 800 million US dollars, an increase over the same period last year.

H&M said the slowdown in the first half of this year was mainly affected by the depressed retail environment in some countries, and the growth rate in the second half of this year is expected to increase.

By the end of May, H&M had 4498 stores in the world, compared to 4077 stores in the same period last year.

H&M group plans to launch a new brand ARKET at the end of this month to further stimulate its growth, and the first store will open in London.

However, Peel Hunt analyst Jonathan Stevenson has said in the financial times that the form of operation is the decisive factor that really threatens the traditional fast fashion. Too large stores are losing the efficiency of traditional fast fashion.

After the release of the earnings report, Daniel L PEZ said that last year's profit decline and net loss were related to increased investment in new store expansion and new logistics centers.

However, he remained optimistic about 2017 and stressed that the group's performance would recover as soon as possible, and the expected pre tax profit would exceed 150 million euros.

In addition, Mango will continue to implement giant stores strategy to optimize consumer shopping experience in the future.

It is reported that Mango sales in the first half of this year exceeded the company's expectations, an increase of 45 million euros compared with the same period last year, and the pre tax profit has exceeded 30 million euros.

In February 2003, Mango opened its first store in mainland China in Beijing, becoming one of the first fast fashion brands to enter the Chinese market, 4 years ahead of Zara.

Mango Asia President Ivy Lee has said that the ultimate goal of the company is to provide cheap and beautiful fashions.

She pointed out that the clothing in the Asian market was mainly divided into two categories, one is luxury products such as Chanel and Louis Vuitton, the other is low-quality unlicensed products, while Mango aims at the high-end fashion market. It is considered that the middle route and the provision of high quality products will be a sharp tool for Mango to attract consumers.

However, after competitors such as Zara, H&M and UNIQLO entered the Chinese market, the overly conservative and old-fashioned Mango in China has lost its dominance in China and is losing Chinese consumers.

Some analysts pointed out that Mango once developed rapidly in China, but too reliant on its agents.

It is understood that 82% of its revenue comes from overseas markets.

China has always been its most important strategic market.

For fast fashion brands entering China, the slow development in China is a step backward.

In 2011, M, David Sancho Grau, vice president of the ANGO International Development Department, told the media that the brand is coexist with two systems of agents and direct stores. The proportion is almost 6:4, and China's sales account for the top three in the global market of Mango.

But from the present point of view, the development of Mango in China is staggering.

A Mango executive told Reuters in an interview that the new brand needed to grow longer than expected. "It will take several years to reach the unit area sales level of the traditional product line", and admitted that the revenue expectations from the past 2014 to 2017 were too optimistic. "Now decided to adopt a more conservative standard to set performance targets."

Although Mango was the first fast fashion brand to enter China, it lost to Zara and began to fall into the "midlife crisis". It also confirms that in the changeable fashion industry, no one will be the winner forever.

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