Spanish fashion retailer Mango is expecting its online revenues to reach 1 billion euros by 2021, according to Elena Carasso, the company’s online and client director. Despite the challenges brought by the Covid-19 pandemic, Mango’s online sales have been thriving, accounting for 24% of the company’s total revenues in 2019. Carasso revealed that online revenues have already surpassed the 564 million euros reported last year, with an increase of over 5% in the first ten months of 2020. By the end of the fiscal year, Mango aims to achieve 800 million euros in digital channel revenue, marking a 40% year-over-year growth. Looking to 2021, the company is optimistic about continuing this upward trend and is setting its sights on reaching 1 billion euros in online revenues, though Carasso acknowledged that it is an ambitious target.

To support its objectives, Mango has made significant investments in creating an omnichannel ecosystem over the past three years, totaling 150 million euros. This investment will enhance its online offering and facilitate its growth. Carasso emphasized that the growth in the digital channel is not solely due to the pandemic but is a result of Mango’s pre-existing ambition to expand its online and omnichannel operations. The pandemic has acted as a catalyst, accelerating the company’s plans.

Mango has experienced a surge in digital customers in 2020, with 3 million new customers joining the online platform. Of this number, 900,000 customers joined during the months of Covid-19-related confinement measures. To further strengthen its e-commerce channel and facilitate growth, the company has implemented various initiatives, including a 30% increase in digital marketing investment and extending the returns period to 60 days. Carasso also highlighted Mango’s agility in responding to changing circumstances, such as quickly adjusting stock movements and adapting services to meet customer needs.

Mango’s online development team has several projects in progress, with a strong emphasis on hyper-personalization of the customer experience. The company aims to tailor its brand to each individual customer journey to make it as relevant as possible. To achieve this, Mango plans to leverage new technologies and artificial intelligence, providing self-service tools for post-purchase processes. Additionally, the company aims to introduce omnichannel capabilities in its franchises, offering different levels of integration.

While the online channel has experienced substantial growth, there remains uncertainty surrounding Mango’s physical stores. Carasso acknowledged the difficulty in predicting when normalcy will return to brick-and-mortar retail. However, Mango remains committed to its store network and plans to adapt and resize stores with the customer in mind. Despite investing in its online operations, Mango plans to increase its total store footprint.

Mango’s e-commerce platform was launched 20 years ago and has since become a significant revenue stream for the company. The online store is available in 20 languages and operates in 80 countries across five continents. With the support of 11 warehouses, the platform processes an average of 42,000 orders per day, with peak periods seeing volumes of up to 150,000 orders. Founded by Isak Andic in 1984, Mango has over 2,100 physical stores worldwide and employs more than 14,000 people. In 2019, the company achieved record revenues of 2.37 billion euros.

Links:
1. Mango Official Website
2. Mango Debuts Digital Fitting Rooms – Reuters