Mango's fast growth fueled by supply chain and focus
Marcel Planellas, secretary general of the Esade business school, describes the Mango fashion retail chain, as “gazelle-like,” because it has grown so quickly. The fashion retail chain opened its doors in 1984 when two brothers, Isaac and Nahman Andic launched the first Mango store in Barcelona. Less than 25 years later, there are 1,114 Mango stores on the leading shopping streets of big cities in more than 90 countries. It is now, according to Planellas, “one of the most valuable retail brands in the world.” Interbrand, the international consulting firm. Says that Mango’s revenues amount to about 700 million euros. Esade has developed a case study of Mango, recently published in Expomanagement, the largest managerial forum of Spain’s HSM management training firm.
In an interview with Universia-Knowledge@Wharton, Planellas notes that when he asks students to explain Mango’s strategy, their first answer often focuses on the positioning of its shops in locations frequented by a specific market segment – young women who like fashion. Beyond that, “some students go further, focusing on what goes on in the [company’s] warehouses and how the company has structured its logistics chain, and the technology that it uses [for logistics]. But very few pay attention to its corporate culture and practically no one has an overall global view [of Mango].” Planellas believes there is something contradictory about Mango. “The chain is very well known at a popular level throughout the world but it is almost unknown from a managerial point of view.” He poses this question: “How many people know that Mango manufactures none of the garments that it sells?”
“We have a very focused strategy,” notes Enric Casi, Mango’s chief executive. “We target women who want the latest in fashion trends. If we were aiming at the entire public, we would not be loyal to our true customers.” Casi asserts that his target is “30% of...
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