1) What are the main differentiating advantages of Mango’s business model? Can this model easily be copied?
Mango is a brand that follows a different idea of fashion, and it tries to communicate this image to its customers in a pure way. Mango differentiates from its competitors in various aspects.
First of all, it very important the level of technology they use. Indeed, it has been essentialin the rapid growth they have reached. They have developed software that allows Mango to manage the entire process. They receive information instantaneously from the different stores they have, so they can operate its activities from the head office in Palau de Plegamans, and take decisions that affect their stores in the different countries they operate. This logistic system permits Mango tocontinuous monitor the demand, and leads Mango to react fast to different changes in the marketplace. Actually, the time to market an item for Mango goes from 3 to 4 months, being the second fastest in the industry (after Zara).This system allows Mango to reduce delivery time, infrastructure and transport costs, reach a more efficient distribution of products.
Another differentiating aspect of Mangois its culture based on human relationships. The company is highly concerned in team building attitude, trying to retain professional and motivated employees. To stimulate this aspect, “If I were the Chairman” meetings are developed. Members from each department elect a representative who collects ideas from people in the department, and passes them to management. 95% of proposals lead to severalchanges.
Salaries are adjusted and bonuses set twice a year, and they are above the average of the sector. They offer other kind of incentives to its customers, such as discounts, training, relocation, etc. With this policy, employees feel they are really important within the organization, and their attitude towards work becomes positive, leading to a higher productivity.
2) Can anexclusive collection by Mango be successful when the company is perceived to be an everyday brand for the masses?
To be an everyday brand does not mean that clothes are not fashionable. Indeed, the software used allows Mango to detect tastes of customers.
Actually, Mango has launched Mango VIP, a collection of high quality limited editions. It tries to reach the idea of exclusivity by labellingspecially the clothes, setting limited editions, and using special materials such as silk or cashmere.
Points of sale are also limited, only selling this brand in 220 out of 1,200 points of sale of Mango. We think that it can really be successful, but to reach it, you have to change the image that the customer perceives. It is not only about the product (of course, at the end is what the customer islooking for), but, due to the increasing level of competition in this industry, it is about the image in a great part.
Actually, in this industry, it is essential the image perceived by the customer. I believe that this collection can be successful in the coming years.
3) Will the company succeed in breaking away from its image as a fashion designer for women only and manage to break intomen`s fashion?
From Our point of View Mango has the capacity of entering the men`s fashion sector, due to several reasons.
Firstly we need to highlight the increased interest of men to be updated in terms of clothing/fashion. Therefore, as a consolidated textile firm, it should take advantage of that issue. This will help to increase the market share, obtain economies of scale, and diversifytheir targets.
I will summarize the main positives aspect for which the success of Mango in this segment will be determined:
I. The fast PRODUCTION SYSTEM that decreases the time of renewing the collections in just 3-4 months (sector mean 6 months, sector leader INDITEX). Letting the possibility of being updated to the fashion trends.
II. The IT SYSTEM has been able to connect the HQ with...
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