As the epidemic has impacted the entire fashion industry this years, e-commerce may be the only winner. However, many brands have not had time to deploy e-commerce business, which has led to a serious decline in performance while those who have experienced rapid growth in 2020.
Spanish fast fashion brand Mango is just an example. This brand with complete e-commerce channels didn’t decline in performance due to the epidemic in 2020, but grew against the trend. Recently, it has benefited from the great results obtained in the e-commerce layout and is accelerating its expansion in the US market. According to the media, the brand plans to open four new stores in the US market in the first half of 2021, one in New York City and the other In Florida, the remaining two are in New Jersey.
Daniel López, head of business development and franchising at Mango, stated: “In the past few years, we have been actively deploying e-commerce business and have invested heavily in building our brand image in the US market. Next we will accelerate the expansion of physical stores in the US.”
Established in 1984, Mango opened its first official website in 1996 and has a history of e-commerce for 20 years. The brand is actively exploring the e-commerce market, which undoubtedly brought it fruitful returns. As early as 2006, Mango launched its official app, which has been downloaded more than 6 million times since its operation.
In 2019, the e-commerce business contributed 23.7% of the group’s total sales, which was 564 million euros. This also prompted the total sales of Mango in 2019 to increase by 6.3% year-on-year to 2.37 billion euros, which was the first increase in the group’s four years from 2015 to 2019. According to the person in charge of the group, without sacrificing profitability, all categories and all sales channels achieved growth and broke the historical sales record.
In 2020, offline stores are forced to close due to the epidemic. Mango therefore can only transfer a large amount of business to online and expand its e-commerce business, which has also caused its e-commerce sales to increase significantly, breaking the historical record again.
According to Elena Carasso, Mango’s Director of Online Business and Accounts, as of the end of October 2020, due to the rapid growth of e-commerce business, Mango’s sales was 5% more than last year. Mango predicts that online sales in 2020 will increase by 40% year-on-year to 800 million euros. And this growth will continue in 2021, reaching an expected e-commerce sales of 1 billion euros in 2021.
