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Mango Clothing eyes Russian expansion
Jul '11
The growing middle class population in emerging countries has caught the attention of Mango Clothing, one of the Spain's most popular urban fashion garment stores. However, Russia has caught its attention the most due to its high GDP.

Russia is likely to supersede Canada this year as a nation with 10th highest GDP in the world. According to the International Monetary Fund's (IMF) estimates the Russian economy would grow by over two times to US$ 3.2 trillion by close of 2016, and would thus become the fifth biggest economy in the world.

Also, Russia is a large country and has a very fashion-oriented market, and Mango's product range matches with the taste of Russian consumers.

Mango embarked on its business in Russia in 1999 and it now operates 72 outlets across the country, which includes 13 new outlets opened in 2010. Early this year, the company has started its new offices in the country, and the company intends to raise the total number of its retail outlets in Russia to 200 by 2014.

Mango proposes to launch new outlets not only in densely populated North Western part of Russia, but even in Sakhalin to the Far East of the country.

These new launches form a part of the major change in the company's strategy, which is aimed at focusing on cities with a minimum population of 15,000 people, as against its old strategy of focusing on cities with a population of at least 500,000 people.

This change in strategy mirrors the growing influence of middle income consumers who are even concentrated in small cities apart from the bigger metropolitan cities. Once the company penetrates to a reasonable extent in the Russian market, it would then make inroads in other CIS countries like Turkmenistan and Tajikistan.

In addition, Mango intends to launch a new 'Mango Touch' boutique retailing accessories in Barcelona and Moscow.

Fibre2fashion News Desk - India

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