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.
Israeli Gap franchisee Elbit Trade has sold the Gap business to swimwear manufacturer Gottex Models....
- Levi Strauss raises the bar on sustainability
- Nike reaffirms US production commitment
- Gap and H&M back Myanmar path to labour reform
- H&M faces margin pressure on dollar impact
- Can technology shape a sustainable fashion future?
- Myanmar minimum wage set at US$3.2 per day
- Far Eastern to invest $323m in Vietnam textile hub
- Fast Retailing supplier continues strike talks
- Talks progressing on Myanmar minimum wage
- Under Armour unveils newest retail presence
- Global market review of lingerie - forecasts to 2020
- World Textile and Apparel Trade and Production Trends: The EU - May 2015
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Myanmar's Garment Sector - Opportunities & Challenges in 2015