Mango clothes a trendy high fashion brand with unique business principles
Let us discuss a few things about theworld’s second Spanish fashionretailer—Mango. Although Mango andZara have the same target market, theirbusiness model and strategies aredifferent in many ways.Mango was established in 1984 with theopening of their first store in Passeig deGracia in Barcelona. One of the foundingbrothers, Isaak Andic, who is currentlyalso the president, is in control of thecompany which is 100% family owned.Given the fact that it may enlarge thecompany’s financial base, there are noplans of selling Mango shares in the stock market so far.? The Franchising StrategyMango’s franchising strategy allows the company to achieve worldwide presence withoutshouldering the costs of store ownership. Its international expansion began in 1992 with theopening of two stores in Portugal. In 1997, half of its revenues were already coming fromstores outside of Spain. This figure has reached 77% in 2008. The brand has now over 1700points of sale in 100 different countries and is still growing.? Zero ManufacturingUnlike Zara, the company does not manufacture any of its Mango clothes. They rely onmore 140 suppliers worldwide, with each region specializing in a certain type of clothing thatit can manufacture at a competitive price. With a huge number of suppliers and sales in 90countries, it can be imagined how powerful and well-designed their supply chain informationsystem is to support their current success and future expansion.? Communication FocusMango’s target market is exactly defined and comprised of women who love fashion andwant to wear the latest fashion trends. The company believes that 30% of the passersby areactually within their target market. This way the brand’s essence is not diluted and is veryfocused on the target market.Unlike its other Spanish rival, Zara, Mango is actively focused on its image, communications,campaigns, PR events and celebrities to support its fashion presence and promote the brand.Celebrities are the center of each communication campaign of their Mango clothes fashionline. They are the best people to embody the brand’s essence which include Penelope Cruz,Monica Cruz, Scarlett Johansson and newcomer Olivia Palermo from the MTV show “TheCity.”
Mango also uses events like the Mango Fashion Awards to recognize its fashion sense. JohnPaul Gaultier was made chairman of its third edition which featured young designers fromdifferent parts of the world to compete in a fashion design contest. This kind of initiative isboth interesting and exciting in the sense that it builds the framework for the future of ready-to-wear fashion design, and it also paves the way for the discovery and development of youngdesigners.Mango has a fashion blog called “Keep the Beat” that it utilizes to keep in touch with itscustomers and take every opportunity to promote and market the brand.In conclusion, it is safe to say that Mango has its own distinctive positioning and strategy thatis supported by a supply chain that needs to be as lean and fast as possible.