Forms for a Mango sample order were found in April in the rubble of Rana Plaza. The collapse of a building in Bangladesh, killing 1,129 people has raised questions about conditions in producing countries. The market repositioning is paying off, with 2012 global sales up 20 percent and the firm back in profit after dropping 32 percent in 2010 and 38 percent in 2011.Ĭheap labour in China, source of 42 percent of Mango clothes, and countries including Turkey, South Korea, Morocco and Bangladesh will remain a central strategy for the company, Casi said. Even veteran department store El Corte Ingles is suffering. Mango makes 16 percent of sales and has 326 outlets in Spain, which is racked by high unemployment and recession. Some luxury brands have also held up.īut the mid-market is suffering. Mango put prices alongside outfits in catalogues and advertising last year, in a similar way to H&M.īudget retailers such as Primark, owned by Associated Foods, have thrived during the economic slowdown as consumers buy cheaper clothes. "We now start with a lower price but without discounts or markdowns later." "In 2010, 2009, we made markdowns, but in 2011 we did so many we ate up half the profit," he said. It also said a new strategy to reduce production costs and prices of its clothes had halted a two-year profit fall, increasing net profit for 2012 by 82 percent to 113 million euros ($150.00 million).Ĭasi described how the firm recaptured European customers battling austerity, with designers creating less expensive clothes, less evening wear and more casual garments. It aims to continue expansion at the rate of more than four new stores a week, entering four new countries this year. Mango has pushed out to even more markets than its larger listed peer, which opened its first store about 40 years ago. "We began later than them, that's why you need to give us 10 years to catch up!" Managing Director Enric Casi told Reuters in an interview at Mango's headquarters and design centre on an industrial estate 30 km from downtown Barcelona.
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