Fast Fashion In China Is Not Fast But Retreat.

Not all

Both are strong.

MangoMNGHolding, the parent company of Spain's high street brand Mango, recently announced its 2014 fiscal year results. After two consecutive years of growth, its net profit decreased by 11.2% from 2014 in fiscal year to 120 million 500 thousand euros in the 2013 fiscal year.

The company has been widely known by the Hollywood for its employment of Hollywood actress ScarletJohansson and French football star ZinedineZidane.

As for the decline in profits, Mango explained that the international men's wear, middle-aged and elderly women's wear and children's wear shops were expanded last year.

In 2013, the children's clothing, sports and underwear product line and big size clothing brand Violeta were introduced. Last year, we introduced a series of clothing for teenagers and mature women.

In an interview with Reuters, EnricCasi, chief executive of Mango, said that the new brand needed to grow longer than expected. "It will take several years to reach the level of sales per unit area of the traditional product line". It also acknowledged that the 2014~2017 revenue expectations in the past were too optimistic. "Now decided to adopt a more conservative standard to set performance targets."

So the group lowered its 2017 revenue target to 3 billion 270 million euros, down about 1/3 from its previous target of 4 billion 970 million euros.

Mango said in a statement that it will invest 300 million euros this year in the expansion of logistics and new markets.

It is understood that as the second largest clothing company in Spain after ZARA, Mango brand currently has more than 2700 shops in 109 countries.

Reporters learned that Mango has 82% of its revenue from overseas markets.

China has always been its most important strategic market.

Mango is four years ahead of its rival ZARA in China.

In 2002, Mango entered China, but it was not until 2008 that it opened its first direct store in Sanlitun, Beijing.

In 2011, DavidSanchoGrau, vice president of the Mango International Development Department, told the media that they were two agents in the channel and a direct store. The proportion was almost 6:4.

He hopes that China's sales will account for the top three in the global market of Mango.

Although the top executive said that the company would take 4% of the global sales budget out for use.

Promotion.

But from the present point of view, Mango's development in China is somewhat "staggering".

Mango has been developing rapidly in China, thanks to its agents.

According to relevant media reports, before 2013, the brand has nearly 200 sales outlets nationwide.

But then it ushered in its closing shop tide.

According to the data provided by RET ruyd China commercial real estate research center, as of the first quarter of this year, Mango has only 61 stores in China.

And the number of ZARA is more than two times that of it.

Bai Rong, deputy general manager of Shanghai regional investment promotion business in Cci Capital Ltd, told reporters that the company has gradually recovered its original agency authority over the past two years.

"Mango's development in China is more cautious than other fast fashion brands."

Bai Rong said that compared to other 1000~2000 square meters, the Mango store is usually only 300~500 square meters.

In addition, its competitors are multi brand businesses.

According to the Spanish Le Monde, Pablo Isla, President of Inditex group, said at the beginning of 2015 that as of now, Inditex group has opened nearly 500 stores in more than 60 cities in China, of which 150 of the most famous ZARA stores.

"Inditex already has many brands coming in. Besides ZARA, there are PullandBear, MassimoDutti, Oysho, Bershka, Stradivarius, ZaraHome."

Bai Rong said that the advantage of many brands is that they can get lower rents and occupy a better position when they enter the shopping mall.

"For those

For example, in China, it is unpleasant to retreat.

Bai Rong said.