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Mango Slashes Prices To Compete With Zara

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Miranda Kerr for Mango's Spring 2013 campaign
Miranda Kerr for Mango's Spring 2013 campaign

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Mango, makers of the "going-out top" you wore once and then lost to your dorm-room laundry pile, has given itself a Zara-style makeover.

Bloomberg is reporting that the Spanish fast-fashion chain has adapted Zara's well-documented methods for success—namely crazy short production cycles, trend-driven styles, and wildly affordable prices. "Mango is emulating Zara as much as it can," Luis Benguerel, an equity trader at Interbrokers in Barcelona, told Bloomberg. "It needs to follow a successful business in order to fix its mounting problems and achieve the type of growth Inditex has seen."

That's translating to lots more casual attire. Two years ago, about 70% of Mango's revenue came from "party and event clothing" (Bloomberg's euphemism) and 30% from casual wear. Mango has reversed that ratio now, meaning they're making lots more clothes you you might actually wear during daylight hours.

Also, Mango says they've cut prices by about 20% "across the board," making them more competitive with Zara and other fast-fashion chains. For example, a pair of "ethnic jacquard shorts" on Mango's website are going for $49.99—$10 less than a similar pair of ethnic-print shorts at Zara.

You can also expect to see more additions to the Mango family of brands cropping up. New collections for men and accessories have recently launched, and Bloomberg reports that Mango plans to introduce brands for kids, sports and underwear later this year. Next year, it's planning new lines for teenagers and plus sizes.
· Mango Mirroring Zara Challenges Europe's Wealthiest Man [Bloomberg, via BoF]
· Are Zara's Sizes Too Small for Americans? [Racked]