The Electronic Retailing Association

Member Company Interview with Lars Buschbom, CEO Mango Media Sp.z.o.o, Poland.

Mango-sp
Mango is a multi-channel business, selling via TV, e- and m-commerce, retail and outbound. Mango is the leading teleshopping company in Poland.

Mango is one of the best known retail brands in Poland with an aided brand awareness of more than 70%.

Established in 1989 as a DRTV company, Mango is now the leading teleshopping company in Poland, and is part of Scripps Network Interactive. Mango's 24-hour TV channel reaches circa 9 million households (a market share of more than 60%). With more than 25,000 products available online, it is also one of the top e-commerce retailers in the “Household & Kitchen” and “Home & Living” categories. Mango is gearing up to become a true multi-channel platform in which home shopping and e-commerce are to play a vital role.

...you have to be innovative and agile, and adjust quickly to local market trends, for example Polish customers are very price sensitive which impacts our price and assortment policies.

Buschbom-lars-cropped
Lars Buschbom, CEO Mango, Poland

 

Lars Buschbom joined Mango as CEO in December 2013, in order to turn around and re-position the company. This task was successfully completed in 2016. Lars has extensive experience in starting up, expanding, restructuring and repositioning companies. He has more than 20 years’ experience in all kind of retail channels and TIME industries across Europe. Lars holds a German MBA, a Diplom-Kaufmann, as well as the Diplôme Supérieur de Commerce from France.

Contact:

Mango-Media Sp.z.o.o.

Al. Grunwaldzka 411

80-309 Gdansk

Poland

Phone: +48 58 7833 760

e-mail: mango@mango.pl

website: www.mango.pl

What is your business model?

Mango is continuously merging different sales channels into a multi-channel platform and using the increasing convergence of customer touch points via various sales channels – TV, e- and m-commerce, retail and outbound. The strengths of each sales channel will be optimized and interwoven thanks to the variety of touch points.

How would you describe the Mango product portfolio?

Our product portfolio is a mix of A-brands, like WMF or Bissel, as well as ‘private’ labels.

We have a broad and comprehensive assortment, especially in our online shop, covering the following main categories: Home & Garden, Household & Kitchen, Health, Wellness, Beauty & Fitness.

The category Household & Kitchen is very strong across all channels.

Mango is reported to be converting towards a multi-channel platform, in which home shopping and e-commerce are playing a main role. What are the challenges?

Generally, Mango is facing 2 main challenges:

Firstly, from the internal perspective, we still need to fine-tune all our processes and IT-related systems to grow our e-commerce business. Only when we combine the strengths of each of our sales channel into one, integrating them just as if we are a one-channel-player, then you can say we are a good multi-channel platform, which uses existing synergies to the fullest.

Secondly, from the customer perspective, although Mango is already one of the major online shops for Household & Kitchen and Home & Living in Poland, this is not yet fully perceived by Polish consumers. We are working to change this perception so that more and more Polish consumers recognise us as an attractive online shop.

Non-Store retailing market in Poland: major growth is to be expected only in the e-commerce retailing sector (CAGR of 12% for the years 2012-2020)

Is teleshopping popular in Poland? How would you describe the Polish market and customer?

The Polish retail market is most likely one of the most competitive in all Central and Eastern Europe. According to forecasts by Euromonitor, major growth is to be expected only in the e-commerce retailing sector (CAGR of 12% for the years 2012-2020), whereas the market for teleshopping will most probably remain stable.

We have a slightly different view of the Polish teleshopping market as we see a certain growth potential for teleshopping as well. And our growth across all main channels in the last years has proved this. Of course, you have to be innovative and agile, and adjust quickly to local market trends, for example Polish customers are very price sensitive which impacts our price and assortment policies.

...we have started to produce product videos that are dedicated for our online channel. We believe that this will make our online offer more attractive to consumers and further increase our e-commerce sales.

How satisfied are you with the results of 2016 and how has 2017 started for you?

We are more than satisfied with the results of 2016 as Mango finished its turn-around and became profitable again for the first time in 7 years. This was achieved, amongst other factors, by a continuous and significant revenue growth over the last 3 years. Our growth rates are still on the rise in 2017. So we look to the rest of 2017 with a lot of optimism.

What is new and exciting at Mango in 2017?

Apart from the fact that we are constantly developing and improving our business, for example by further enlarging our pure e-commerce product offer, we have started to produce product videos that are dedicated for our online channel. We believe that this will make our online offer more attractive to consumers and further increase our e-commerce sales.

What does the future hold for Mango and what is your growth strategy?

Mango’s future looks very promising. Our current strategy was defined 3 years ago and proved to be very successful. There are a lot of signs indicating that it should continue to be the right way to go for the next 3 years. We will continue strengthening our multi-channel platform with an appropriate assortment adjusted to each of the sales channels.

Do you see international market opportunities for Mango?

Personally, I see a lot of opportunities in international expansion, especially for a multi-channel company like Mango. Nevertheless, it should be well thought through as several things have to be taken into consideration.

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Mango's modern TV studio set features light, neutral colours with wooden elements

What was the most successful product ever at Mango and is this product still in the product portfolio ?

As I have only been at Mango for 3 years and the company has a 27-years-long history, I cannot really judge what the most successful product ever was. However, looking at the last few years, we had several bestselling products - one of our carpet cleaners broke all sales records. A modified version of it is still in our product portfolio, even though it’s been in-line for more than 2 years.

What was the first Teleshopping product that you bought for yourself and is it still in use?

If I remember correctly, I bought my first teleshopping product at Mango. We successfully launched a bedding line on TV two years ago, which I also bought. And yes, I still use it.

What is your history with ERA?

I am a frequent guest at the conferences and fairs organized by ERA. They are amongst my favourite industry events. It’s always a great networking possibility and a chance to meet “everyone” from everywhere. I also enjoy their intensity and the effects they bring about in our industry. In January this year I was elected to the ERA Europe Board of Directors.