Fashion brand Mango is reconsidering retail expansion strategy in China. In 2019, the Spanish label teamed up with local group Hangzhou Jingzhe Clothing, to expand retail in China by opening 16 new stores. In the light of the current prospects for physical retail, and growing influence of the e-tail channels, Mango has decided to revise its expansion plans.
The brand intends to prioritise e-tail channels, as opposed to physical stores network. Mango already operates own e-tail site in China, and is also distributed through multibrand sites Tmall, owned by the Alibaba group. In its 2019 agreement, Mango and Hangzhou Jingzhe Clothing envisaged the possibility of expanding the label’s web presence in China, by introducing Mango on other local e-stores. The agreement’s goal was to increase physical and online presence in the Chinese market.
Mango’s decision to shift focus and prioritise e-tail was prompted by the departure of David Sancho, the label’s former CEO in China, who was in charge of the country’s store network. At the end of January 2020, when Mango was forced by the Covid-19 pandemic to close its Chinese stores, 26 of them were active in the country.