Posts Tagged ‘Supply Chain’
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Today it is time to speak a little bit about Mango, the world’s second Spanish fashion retailer (1). Even though Mango and Zara may have the same target market, their business model and strategy are somehow different.
Mango was founded in 1984 with the opening of a first store in the Passeig de Gracia in Barcelona. The founding brothers, Isaak y Natham Andic, currently keep the control of the company which is 100% family-owned. Although it would enlarge the company financial base, there is no plan of selling shares in the stock market so far.
The franchising strategy:
Indeed the franchising strategy allows Mango to achieve worldwide presence without baring the costs of store ownership. The international expansion started in 1992 with the opening of two stores in Portugal. In 1997, already half of the revenue came from out-of-Spain stores. This figure reached 77% in 2008 (2). Today, the brands has over 1700 points of sale in 100 countries. (3)
Unlike Zara, Mango does not manufacture any of its pieces of clothes. The company relies on “more than 140 suppliers around the world, and each region specializes in one type of clothing that it can manufacture at a competitive price”(4). With such a range of suppliers and sales in 90 countries, we can imagine that Mango’s supply chain and information system are powerful and well-designed to support current success and future expansion.
Mango’s target segment is precisely defined and composed of women who love fashion and want the latest fashion trends. Enric Casi, Mango’s CEO believes that 30% of the people passing by a store is actually in the target segment. That way the essence of the brand is not deluted and the target segment is very focused (5).
Unlike Zara, Mango is actively focusing on Image, Communication Campaign, PR, Events and Celebrities to support its fashion positioning and promote its brand.
Celebrities are the core of each communication campaign. From Penelope and Monica Cruz to Scarlet Johansson and the newcomer Olivia Palermo from MTV’s show The City, celebrities are the best persons to embody the brand essence.
Mango is also using events like the Mango Fashion Awards to settle its fashion sense (6). Jean Paul Gaultier was the Chairman of the third edition which showcased young designers from different parts of the world competing in a fashion design contest. This kind of initiative is interesting in the sense that it builds the frame for the future of ready-to-wear fashion design and paves the way for the emergence of young designers.
Mango also uses its blog Keep the Beat to keep in touch with its customers and grab every opportunities to promote the brand. Last event to date: Barcelona’s Shopping Night Out early december.
As a conclusion, we can say that Mango has a distinctive positioning and strategy that is supported by a supply chain that needs to be as lean and fast as possible.
Next time, we will cover a surprising brand well depicted by the slogan “this is not the same“: Desigual. Stay tune!
(1), (2) Dossier economico: http://www.mango.com/oi/index.html
(3) Detras de la marca : http://www.mango.com/oi/index.html