Clothing Brand Mango Closes 450 Stores And Ends Up Working With Jcpenney

According to the relevant data, Mango brand has nearly 200 sales outlets nationwide before 2013.

But then it ushered in its closing shop tide. As of the third quarter of this year, Mango has only more than 50 stores in China.

With the end of the department store chain JCPenney, 450 stores were closed in the US.

It is reported that Mango has concluded its partnership with JCPenney, and almost all US cooperative stores will be closed tomorrow.

Mango sold its products in 450 JCPenny stores earlier, and only Mango stores in parts of the United States will retain such products as New York and Miami.

There is a five year authorized sale contract between Mango and JCPenney, but these sales outlets will be reduced as the contract expires.

US media reports say that sales profits from JCPenney stores account for only 0.5% of Mango's global performance, so cutting JCPenney stores will not affect the global expansion of brands.

In the future, Mango will focus on expanding independent stores in cities that have already been successful.

Mango was very successful in Europe, where a large number of brand stores were established, but in 2014, due to the shift of brand focus to

That led to a 11% drop in profits.

JCPenney seems to be no longer part of the Mango store's strategy.

Mango is a family owned company and has stores in over 100 countries worldwide.

Mango once developed rapidly in China, but too reliant on its agents.

It is understood that as the second largest clothing company in Spain after ZARA, Mango brand currently has more than 2700 shops in 109 countries.

Mango has 82% of its revenue from overseas markets.

China has always been its most important strategic market.

For China

For businessmen, the slow development in China is a step backward.

Mango is four years ahead of its rival ZARA in China.

In 2002, Mango entered China, but it was not until 2008 that it opened its first direct store in Sanlitun, Beijing.

In 2011, DavidSanchoGrau, vice president of the Mango International Development Department, told the media that they were two agents in the channel and a direct store. The proportion was almost 6:4.

He hopes that China's sales will account for the top three in the global market of Mango.

Although the top executive said that the company would take 4% of the global sales budget for the promotion of the Chinese market.

But from the present point of view, the development of Mango in China is staggering.

According to the relevant data, Mango brand has nearly 200 sales outlets nationwide before 2013.

But then it ushered in its closing shop tide. As of the third quarter of this year, Mango has only more than 50 stores in China.

The number of ZARA is more than three times that of it.

Mango CEO EnricCasi said in an interview with the Reuters that the new brand needs to grow longer than expected. "It will take several years to reach the level of the unit area of the traditional product line" and acknowledges that the previous 2014~2017 year revenue expectations are too optimistic. "Now we decide to set performance goals with more conservative standards."