Catalan clothing store Mango aims to duplicate sales in 4 years
The president of the multinational Catalan clothing store Mango, Isak Andic, affirmed, “We are not even at 30% of our capacity. “In 4 years, Mango will be twice what it is now”. Mango currently operates 1,200 stores in 105 countries and hopes to open 400 new establishments in 2011. They plan to become one of the top 3 clothing companies in the world.
Barcelona (ACN).- Mango president Isak Andic stated that they are planning to duplicate their sales in the next 4 years, which would make the company one of the top 3 clothing companies in the world. Andic, who funded the company and owes many shares, explained that Mango still has great potential for growth. \u201CWe are not even at 30% of our capacity\u201D. The company has experienced great success on the international market, allowing them to avoid the effects of the economic crisis. Mango is currently operating in 105 countries with over 1,200 stores. Mango plans to open 400 more stores in 2011. Mango\u2019s association with the Barcelona brand has also helped in their international expansion, says Andic.
Mango will close this year with 1,200 million euros, 1,650 million for the entire chain. The company generates 10,000 direct jobs, 98% of which are taken by women with an average age of 28 years, and 25,000 indirect jobs. Mango\u2019s president is satisfied with these results, but affirms that the company still has many goals ahead. One of the goals is to open more than one establishment every day in 2011.
According to Andic, already existing Mango stores will also see growth in the coming years. This is a result of their recent menswear and accessory lines. He explained that there are many countries with positive perspectives, such as the company\u2019s current success in China. Mango currently operates 100 stores in China and plans to open 250 more.
A Catalan company
Mango\u2019s association with the Barcelona brand plays an important role in the company\u2019s international expansion, says Isak Andic. \u201CWe both win\u201D, stated the Mango president. He assured that despite some administrative obstacles, the company \u201Cfeels Catalan\u201D and because of this, they have never thought of moving their headquarters outside of Catalonia.
Andic complained about administrative burdens. He explained the case of Mango acquiring 1.5 million metres of land in the Catalan village of Lliçà 10 years ago and not obtaining the proper licenses for it until 2009. The problem meant an important expense for 7 Mango distribution centres in Catalonia, but they were finally able to open a new centre of 500,000 square metres.
According to Andic, a key factor for Mango\u2019s growth is their profit reinvestment. He stressed that the company \u201Cdoes not confuse profits with pockets\u201D. Mango invests 98% of its profits back into the company. Mango is also supported by banks. Despite the economic crisis and credit restrictions faced by many businesses, Mango continues to count on the financial sector, explained Andic.
Moreover, half of Mango stores are franchises, something that lightens the investment load when opening new stores. But the president says that the Catalan company will never enter the stock market. It will not happen \u201Cas long as I am president\u201D, he assured. Andic is considered to be one of the richest people in the world.
But it has not always been a bed of roses for Mango. Andic confessed that in 2000 the company made management \u201Cerrors\u201D during difficult economic moments in countries like Argentina and Turkey. Andic explained that in the last 5 years, the company has seen growths of 50 and 60%. During that time, they continued to open large stores in medium and small cities. \u201CWe spent the same amount in small cities as in important ones\u201D, and the amortization was equivalent to sales for the first type. In spite of everything, Andic affirmed that the company came out of the problem stronger.