SPAIN: Mango makes big bet on Russian retail
Mango plans to open 30-35 stores a year in Russia
Spanish women's fashion chain Mango has set its sights on Russia, where it wants to carry out a major expansion with plans to open as many as 300 shops by 2014, a company official confirmed to just-style.
The Barcelona-based retailer will elevate the store count from 130 shops currently. According to the official, the chain can sell its clothes in Russia at prices 40% higher than in Spain.
"Russian youth are very fashion oriented. Women are big fashionistas," the official said. "They like to spend a lot on their image."
The official noted the expansion will be executed mainly through franchises, though Mango will own several flagships in the best high street locations and malls in Moscow.
The company's European strategy has been to open its own stores, but in Eastern Europe and Russia it prefers franchises to minimise expansion risks. Currently, 20% of Mango's stores in Russia are self-owned while the rest are franchised.
Mango recently opened a Moscow office to organise the expansion which will see it open 30-35 stores a year in the fast-growing economy.
Mango's sales totalled EUR80m (US$115m) in Russia last year. It hopes sales will reach EUR200m in three years when the 300 shops are operating. The official concluded Russia will be nearly as important as China for Mango's expansion in coming years.
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