David Sancho, CEO of famous Spanish Fashion Brand Mango, was a few days ago at IFA Paris Shanghai Campus as a special guest. During this occasion, he delivered a marketing lesson and shared his passion and vision with the MBA Fashion Business students.
Mango, the high trend Spanish retailer, became in few years one of the leading global fashion brands, operating more than 2700 stores in over 100 countries worldwide. In China, since 2002, the company is executing a plan to reinforce its image and position with total renovation of existing stores and expansion plan for the Chinese market. « China is today our driving market in Asia » explained David Sancho, CEO of the brand, based in Shanghai.
David Sancho was invited by IFA Paris to give a lecture to the students of the Fashion Business and Luxury Brand Management MBA. He introduced Mango’s strategy and keys to reach success in one of the most competitive markets of nowadays, the fashion industry.
During his speech, David Sancho was eager to know how Mango was perceived among the students. He was told that « Mango is one of the most dynamic fast fashion companies in the market ; a brand that inherit the Spanish Culture, especially from Barcelona origins. Also that is a family business whose founders are the brothers Isac and Nahman Andic. »
« The question which prevails, in fact, is how to make the business sustainable? »
With great attention to the student’s comments, David Sancho explained that « the most efficient way to achieve a rapid and successful expansion in China is in fact, how to make the business sustainable, which is a complex subject. » Managing a brand with dimensions like Mango, to leverage the cost of investment and the sales productivity is simultaneously important. Sustainable business is built from a short to a middle term and then expands to a long term brand influence. To achieve this goal, first Mango trusts the reliable local franchisees since entered the market ; franchisees are helping to create a unique brand core value, attracting consumers and interacting with them. Secondly, efficient management makes employees motivated and happy to represent the brand, creating the sustainability it needs to keep expanding. In Mango, we can find an outfit suitable for any occasion : to a casual look from its jeans or casual collection, or to a sophisticated style from it suits collection. The brand targets modern urban generations aged between 25 to 40 years old that has a taste for fashion and quality garments sold for an affordable price. Permanent physical and virtual innovations are done in order to keep the brand on trends and overcome consumer’s demands and expectations.
« People invest in their future, not in their present ! »
For an hour, David Sancho explained also how the apparel company keeps moving forward consolidating its presence in China. He emphasized again and again on the crucial importance of « applying the right retail format because in this industry stores open and close every day and having the right store’s portfolio is the key for a healthy business. Profitability goes first ! »
David Sancho advised the students. « People invest in their future, not in their present! » especially today, at a time when « the shopping behavior is changing fast and will continue to change, motivated by the fast development of online business ! » Those are some of the reasons that drive the retailers of the sector, including Mango, to review their business strategy, resize and renew their stores, improve their products, bring innovation, training and development of their teams, all in order to bring their clients the « right shopping experience. »