The Spanish fashion company Mango saw its turnover decrease significantly due to the coronavirus crisis. Yet, it wasn’t all doom and gloom, as e-commerce grew strongly and now accounts for more than 40 per cent of all sales.
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Mango’s total revenue in 2020 was 1.8 billion euros, half a billion less than in 2019. Gross operating profit (EBITDA) came in at 193 million euros. Due to several lockdowns in many countries and strict Covid measures, sales in physical stores fell by as much as 43 per cent, writes FashionUnited.
The Spanish fashion brand could fall back on well-developed e-commerce: the online department grew by 36 per cent last year, which was good for a turnover of 766 million euros. Consequently, online sales represented 42 per cent of total revenues, almost twice as much as a year earlier. CEO Tony Ruiz attributes the success to the great efforts the company has been making for the past twenty years to expand its online channel.
In the following years, Mango also wants to grow primarily online. The company has already announced that it aims to reach the billion euro mark in online turnover this year. To realise this, the retailer wants to work on the hyperpersonalisation of online browsing and the online shopping experience. They also want to use new technologies based on artificial intelligence. Recently, the brand announced it would be opening up its webshop to complementary brands. Lingerie brand Intimissimi will be the first new partner to sell on the platform.
