It’s not unwise for a fast-fashion company to look to billion-dollar behemoth Zara as a proven model of success, and it seems like one in particular—Mango—is doing just that.
Both Zara and Mango are Spanish high-street stores known for offering accessible fashion at realistic price points, though there’s a clear-cut difference when to comes to merchandise. Traditionally, Mango’s the place to go when you’re seeking glitzier, Ibiza-ready clothes, while Zara churns out a staggering amount of deceptively high-end, ripped-from-the runway styles that shoppers have responded to in droves.
According to Bloomberg, shoppers can expect to see some Zara-esque influences at Mango: The company has reportedly taken a cue from Zara and its parent company, Inditex, following a 60% decline in profit during the two years through 2011, and has slashed prices by about 20% across the board, bringing them closer to Zara’s. Mango also made it a point to cut back on party-ready clothing and is starting to introduce more daytime-friendly options. “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.”
Bloomberg also reported that Mango has bumped up expansion outside Spain and placed more emphasis on the rapid-fire production model that has helped net Inditex $2.3 billion euros last year (nearly $3 billion dollars.)
“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.”
It’s also worth noting that Zara has a killer e-commerce presence, and recently underwent redesign that’s reminscent of high-end Swedish label Acne (hey, it is Zara— originality be damned!), so mentally, shoppers feel as though they’re shopping designer stuff at fast-fashion prices. Granted, much of what’s sold at Zara isn’t particularly cheap—pieces average between $60 and $80. While Mango’s prices are already rivaling Zara, its web site still has a ways to go if the brand is looking to align its chic factor with the Inditex-owned company.
To read the whole story, head over to Bloomberg now!