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Mango expands in the world markets - Essay Example

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This research will begin with the retail trends of the world’s prêt-a-porter market. The researcher of this essay aims to pay special attention to Mango Positioning and Competitive Environment; Key Players and their Performance and Mango in international markets. …
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Mango expands in the world markets
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Mango expands in the world markets

According to the research findings in 1960s the fashion market was dominated by haute couture but this trend was going to change rapidly with the emergence of mass-consumer society and prêt a porter or ready-to-wear clothing. Initially consumers we not very welcoming of the idea and consider ready-to-wear clothing inferior, but by 70s the trend changed as prêt a porter showcased collections at par with haute couture .Over the years businesses have proven that the retail provides a brand with the highest number of options to showcase its potential. It is noteworthy that Spain was one of the countries which had a significant impact of the European financial crisis in 2008. This worsened the situation for most Spanish businesses as there was low productivity, high unemployment and low FDI. Even during these tough times fashion brands like Zara, Mango and Massimo Dutti were well prepared for the crises due to their high international presence, adaptation and up-to-date collections based on urban trends. Mango is one such popular prêt a porter brands that have an international presence. Mango’s aim right from the beginning has been to dress the urban young woman in premium quality trendy clothing at very affordable prices. Mango has been expanding rapidly globally and has managed to attain its goal “…of having a store in every major city of the world”. Mango has its origins in Spain and initially Spanish consumers were price-conscious but not as fashion-conscious as their Italian counterparts. So it was Italy who entered the international arena first. Mango had a small presence at the time when they entered the international market but they followed the franchising model and also offered return policies to their consumers8. Key Players and their Performance Mango globally is recognized as a key player in the industry of “fast fashion”, other key players include megabrands like Sweden’s H&M, Spanish Zara, American Gap and the U.K. retail chain New Look 9. By “fast fashion” we mean that these stores turn-over their inventory on a weekly-basis as opposed to a monthly one10 .The key concept promoted by all these brands is to make trendy and inexpensive clothing accessible to everyone at a very rapid pace. Currently a dominant trend in the apparel retail has been that they have started forming alliances with celebrity designers. This strategy has worked wonders for most brands and pulled the retail label in-line with high-end celebrity brands. According to Interbrand H&M has been particularly very ardent towards embracing this trend by working in collaborations with the likes of Stella McCartney and Roberto Cavalli (2008). Zara however has not embraced this trend very enthusiastically and sells a somewhat similar product and price range, Mango has attempted to differentiate itself by bringing designers like Mila Jovovich11 , Together they work towards providing affordable clothing to people while having been designed by a top-notch designer. Zara is a member of the Spanish group Inditex, which is considered the world’s largest clothing retailer12 . Presently Zara is showing phenomenal growth and performance as compared to others, here is a representation of sales performance for the brand and some other retail brands for the year 2001 and 2002. Source: Torun, F. “ZARA-A European Fashion Brand.” Mango Positioning and Closest Competition In terms of branding Mango would be a “branded own label” by this we mean that they have a private label proposition as well as environment and pricing strategy13. However, in light of the positioning Zara would be the closest competitor for Mango, because their target market, country of origin, business methodology I very similar. Both are examples of “fast fashion” retailers who have invested extensively n designing and supply chain management to ensure that their inventory levels are managed every week rather than on a monthly basis. Mango handles all steps from product ... Read More
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