Ten years after closing its last store in Brazil, the Spanish fashion brand mangaTHE will be sold again in the country, now in the virtual world. The performance comes amid the company’s investments to expand its internationalization and “meet” its rival, also Spanish, ZarThe. Around here, the brand’s comeback has one person in charge: the dafitiwhich will have the exclusivity of the company’s products.
THE e-commerce de moda acquired the rights to resell the products of the Spanish company and will be its representative fast fashion in the country. The investment for the partnership, however, was not disclosed.
Fabio Fadel, Dafiti’s commercial director, says Mango products are arriving in the site’s premium portfolio after a nine-month negotiation between the two companies. The executive claims that Mango was chosen because of its international relevance but also because of the aspiration factor of the products. “It is not a difficult product to digest, because it has fashion information, but it is a commercial, simple and traditional product, which is easy for the female audience and for Dafiti,” says Fadel.
Initially, the e-commerce will only offer pieces from the women’s universe, but, according to the executive, in the future, depending on performance, the company should expand the product range with men’s and children’s items.
Fadel points out that, as in Spain, here too, the main competitor of the new label will be fast fashion “premium” Zara, a company that landed in Brazil shortly before Mango closed its stores here. “Our idea is to promote the reach of this brand and fight (for the market) with Zara,” he says. “The level of competition in the digital market has increased a lot in recent years. Now, the environment is more competitive, there are both foreign and national retailers, in addition to the ‘white line’ retailers looking for space in the fashion world,” he points out.
Retail expert and founder of Varese Retail, Alberto Serendinoexplains that, like Zara, Mango positions itself in the world as its product fast fashion widespread, but in Brazil, given the cost of importing products, it ends up being repositioned in the local market as a premium product. “People who travel know Mango, because the brand is all over the world,” he says. Around here, the pieces hit the fashion site with an average ticket for the pieces between R$280 and R$300.
In Serrentino’s assessment, despite the arrival of Mango adding value to Dafiti’s business, the all-virtual operation may pose a challenge to the brand’s stickiness in the country as products reach consumers at prices that directly compete with national brands in premium category, which are already well accepted by consumers. “They will face competition that takes all of Le’s set Lis Blanc is animalfor example,” says the expert.
Founded in Barcelona, Spain in 1984, Mango is present in more than 115 countries, with approximately 2,600 physical stores, in addition to operating e-commerce in another 90 markets.
Mango’s entry into Brazil is part of the international expansion of its online business, which closed 2022 with a turnover of €960 million (R$5.2 billion at current prices). Revenue from virtual sales represents around 36% of the Spanish company’s total turnover.
In January 2013, Mango ended its operations in Brazil, with claims that Brazilian bureaucracy and a high tax burden on imports would be instrumental in the decision to leave the local market. At the time, the Spanish brand even invested in e-commerce sales, but ended up quitting immediately, due to the segment’s low penetration in the country.
Second Elena Carasso, Director of Customer and Online Business at Mango, the return of the brand to Brazil is a big step in the strategy of expanding the online business in the world. “Apart from Brazil, the forecast for 2023 is to expand our online presence to another 20 new markets in the first half of the year, especially on the African continent,” he says.
Also in the assessment of Serrentino, from Varese Retail, in addition to competing with Zara and other brands in the premium category, another challenge for Dafiti in the task of importing products is the difference between the European calendar and the Brazilian one. The expert believes that since it is a 100% virtual operation, there is the possibility of creating a mix of items that foresees products from the new collections, even amid the difference of seasons. “I think of collections for fast fashion it’s always a challenge, because Brazil promotes some trends and lags behind others,” he says. “If they sell in Brazil, a collection that is outdated compared to Europe, there might be less appeal for the brand,” he adds.