1. Let us discuss a few things about the
world’s second Spanish fashion
retailer—Mango. Although Mango and
Zara have the same target market, their
business model and strategies are
different in many ways.
Mango was established in 1984 with the
opening of their first store in Passeig de
Gracia in Barcelona. One of the founding
brothers, Isaak Andic, who is currently
also the president, is in control of the
company which is 100% family owned.
Given the fact that it may enlarge the
company’s financial base, there are no
plans of selling Mango shares in the stock market so far.
? The Franchising Strategy
Mango’s franchising strategy allows the company to achieve worldwide presence without
shouldering the costs of store ownership. Its international expansion began in 1992 with the
opening of two stores in Portugal. In 1997, half of its revenues were already coming from
stores outside of Spain. This figure has reached 77% in 2008. The brand has now over 1700
points of sale in 100 different countries and is still growing.
? Zero Manufacturing
Unlike Zara, the company does not manufacture any of its Mango clothes. They rely on
more 140 suppliers worldwide, with each region specializing in a certain type of clothing that
it can manufacture at a competitive price. With a huge number of suppliers and sales in 90
countries, it can be imagined how powerful and well-designed their supply chain information
system is to support their current success and future expansion.
? Communication Focus
Mango’s target market is exactly defined and comprised of women who love fashion and
want to wear the latest fashion trends. The company believes that 30% of the passersby are
actually within their target market. This way the brand’s essence is not diluted and is very
focused 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 fashion
line. 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 “The
City.”

2. Mango also uses events like the Mango Fashion Awards to recognize its fashion sense. John
Paul Gaultier was made chairman of its third edition which featured young designers from
different parts of the world to compete in a fashion design contest. This kind of initiative is
both 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 young
designers.
Mango has a fashion blog called “Keep the Beat” that it utilizes to keep in touch with its
customers 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 that
is supported by a supply chain that needs to be as lean and fast as possible.