Mango: menswear range bears fruit as retailer plans international

Mango is expanding its menswear concept, following successfultrials in a selection of its stores since March 2008, and hasopened its first store under the new HE fascia. The Spanishclothing retailer is focusing on a multi-format strategy to drivegrowth in these woeful times, and its extensive internationalexpansion and experience abroad provide a solid platform fordeveloping new concepts.

Mango began trials of its new menswear range in around 250 of itsMango stores earlier this year. Encouraged by a good response, thegroup has decided to launch a stand-alone fascia for its menswearrange under the banner HE (Homini Emerito). The new concept aims totap into a broader male customer base, many of whom may have beenunfamiliar with its menswear offer, or found it unappealing, asMango outlets are generally perceived to cater exclusively towomen.

The first HE store opened in Barcelona on October 7, 2008, with aselling space of 500 sq m. The group plans to roll out the conceptboth nationally and internationally, with the next stores scheduledto open in Madrid, London and Paris.

In addition to a new menswear concept, Mango plans to bolster itsaccessories concept, Mango Touch. As competitor Inditex developsits new accessories brand Uterque in Spain, Mango plans to convertMango Touch into an international brand. It has already openedstores in Andorra, France and the Russian city of Kaliningrad.Furthermore, Mango is extending its presence in airports, openingMango Touch stores in some of the world's major airports, includingDusseldorf, Gatwick, Hong Kong and Madrid.

Faced with a deteriorating situation at home, Mango will developits new concepts abroad in a bid to bolster the internationalcontribution to group turnover. Currently, 76% of its 1,114 storesare located abroad, which has helped the retailer to cushion theblow from the consumer downturn in Spain.

Mango's multi-concept strategy will help the retailer to diversifyits customer base and become less susceptible to a single segmentof the market. Meanwhile, by launching its new conceptsinternationally, it is taking a different approach to Inditex,which usually trials its new concepts in Spain before extendingthem abroad. Quickly rolling out new concepts internationally is asolid move considering the current downturn in Spain. Although thesituation in some countries abroad is equally dire, by opening in avariety of markets, Mango can diversify its risk and establish aglobal presence, while positioning its new concepts in readinessfor the rebound.

Source: Verdict Research

Source: Datamonitor