Mango Goes More Casual to Compete with Zara
Mango, Zara, Inditex
Bloomberg reported that Mango has given itself a major make under. The once very giltzy and dressed up store has opted to change out their items in favor of some more casual pieces, keeping in line with fellow Spanish brand and rival Inditex SA, owner of Zara.
"We had gone way too far with our focus on clothes for parties and events," said Enric Casi, general manager of the Barcelona-based retailer. "Not even our employees wore Mango."
This casual push wasn't the only lesson Mango took from Arteixo, Spain-based Inditex. Mango has been battling the decline of profits of almost 60% in the past two years. Also, Isak Andic, the founder, chairman, and owner of almost 100 percent of the company, has stepped back into the day-to-day management to help restablish the store.
Mango has cut prices by about 20% bringing them more in line with Zara's prices. The company has also stepped up expansion outside of Spain and placed more emphasis on the fast-fashion model that has been so successful for Inditex.
"Mango is emulating Zara as much as it can," said Luis Benguerel, an equity trader at Interbrokers in Barcelona. "It needs to follow a successful business in order to fix its mounting problems and achieve the type of growth Inditex has seen."