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Mambo adopts new business model for global reach
08
Feb '12
Mambo, the label that designed the Australian athletes' uniforms for the opening ceremony of the 2000 Sydney Olympic Games, has adopted a new business model to expand its footprints into global markets.

As part of its new business strategy, Mambo has entered into partnership with The Bonton Group to enter the US market. Under the agreement, The Bonton Group, which has stores across the US, will be responsible for manufacture of Mambo items that are to be sold under Mambo brand name.

The partnership agreement includes an approval process to ensure that Mambo brand's signature is maintained. Mambo will get a royalty from every sale.

The Australian brand had entered into similar partnership arrangement with Brazil's surf brand Mormaii in March last year, to distribute Mambo products at 22,000 outlets across South America.

In Australia, Mambo is being sold through Big W. The brand is also looking for similar partnerships to penetrate into Indonesian and South Korean markets.

Mambo was acquired by the The Nervous Investor Group around four years ago. Its restructuring began around 18 months ago and Mambo no longer manufactures its product range.

Mambo's sales have surged 1000 percent since the firm turned into a license, art and marketing house. The new business model has helped Mambo reduce its risk, while gaining exposure to markets like the US.

Mambo's partnerships have minimum royalty rates and guarantees, and hence, the company hopes to expand its business to more markets and invest in new artists.

Fibre2fashion News Desk - India


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