3. • More than 2500 stores in 108 countries
• Collection mainly produced in China & Morocco
• Turnover 1.408 billion Euros for 2011
• 644 new stores in 2011, 11% growth
• Collection Line-
Casual
Suit-evening
Sport-MNG jeans
4. •
National with International Growth 13
1984-85 – Started
& 5 retail outlets and by 1988 they were
• In seven years the company reached 100 retails outlets in Spain
and a sales volume worth 48 million Euros.
improve the internal
fashion, design,
system of stock
image and good
management,
price-quality logistics and product
relationship. distribution
Global
Concept
5. • 1992 - The first steps outside the Spanish market were made
with the opening of two stores in Portugal
• 1997 - The volume of business generated abroad surpassed that
of national business
• 2009 - It reached 76% of total volume with a turnover of
1,480 million Euros
• At Present – Now Mango is present in 100 countries with more
than 1,400 retail outlets distributed throughout the world
6. Key Growth Strategies
Mango's greatest asset
lies in its PEOPLE.
Mango has based its
business culture on human
relations, teamwork and the
continuous training
7. Key Growth Strategies
Own LOGISTIC & SCM SYSTEM which
allows it to manage, direct and take
decisions throughout the complex process
of design, supply, manufacture, sales and
after sales in a completely automatic way.
• Reduce delivery times & streamline
distribution of the product;
• Manage orders
• Control quality;
• Reduce infrastructure costs ; and
• Be flexible and adaptable at all
levels
8. Key Growth Strategies
All manufacturing activity
takes place through third
party companies, about 200
SUPPLIERS throughout the
world.
New suppliers are included
every season to cover
technical requirements
9. Internationalization Of Mango
Stages in the International Expansion Strategy by Way of Entry
Stage Period Nature Way of Entry
First Stage 1992-1995 Introduction Franchises.
(Learning)
Second 1996-2002 Expansion Franchises. Wholly-owned shops.
Stage (Growth)
Third Stage 2002-2005 Consolidation Wholly-owned shops only in markets
in the euro, dollar and yen
zones. Franchises in markets in the
euro, dollar and yen zones.
Diversification Only Franchises in all those markets
outside the euro, dollar and
yen zones.
Source: Based on information from MANGO.
11. Factors behind Globalization of Mango
• THE FRANCHISE AS A FORM OF ENTRY
• MIX INTERNATIONAL MARKETING STRATEGIES
– PRODUCT STRATEGIES - The company makes common collections
in 89 countries that have completely different cultural,
climatological and morphological environments.
– Portfolio of brands - The products of the company are not
commercialized in all the countries under the same brand. On an
international level, the chain uses four names derived from the
acronym or combination of the original MANGO brand.
• MANGO – Original brand name
• MNG
• MANGO Barcelona – Used in China, wants to be associated with
European Origin.
• MNG by MANGO – Used in USA, ‘the Anglo-Saxon world uses initials a lot
• PRODUCT LABELLING - MNG brand appears both in the outside labeling as well as the
inside, in such a way that the same labels can be used in all the markets.
• PRICE STRATEGY
– In general, MANGO applies a medium-high pricing policy, which
accompanies its product policy of medium-high quality
12. • Specific market segment – young women who like fashion
• Price and positioning - ‘A middle class positioning’ but above ZARA.
• COMMUNICATION - MANGO assigns 4% of the total sales in each country to
advertising
• Subcontracting - Mango manufactures none of the garments that it sells
• Logistics and Supply chain management
– more than 140 suppliers around the world, and each region specializes in one type of
clothing that it can manufacture “at a competitive price.”
• Computer platform to manage its supply chain
– Mango can manage its more than 7,000 direct employees as well as the additional 22,000
people who work for Mango indirectly
• As at 31st December 2010, the Mango group had 1,757 stores, 1,456 of which
were located abroad because of Cultural Diversity of its products.
“The challenge now is to consolidate the position in each country”. - Isak Halfon
Director of International Expansion of MANGO
13. Future Sustained Growth
• Explore New Niche Market
• Reinforce Brand Image as Designer Product
• Personalize Retail Outlets
• Plan financial resources
• Invest in new Technologies and facilities
• E-business
14. Facts and Figures
Business figures for recent financial years are as follows:
DESCRIPTION 2007 2008 2009 2010
Net turnover 1,020 ,356 1,100,705 1,145,156 1,269,523
Net profit 129,139 143,258 148,016 101,164
Stores 1,094 1,228 1,390 1,757
Countries 89 90 97 102
Sales (%) 76% 77% 78% 81%
Employees 6,973 7,865 8,132 8,690
15. Conclusion
• Mission “To be present in all cities in the world and
projecting a coherent and unified image”
• Three fundamentals:
1) Offer quality garments at a reasonable price
2) Manufacture in countries with more competitive
production costs, obtain a low cost and keep prices
competitive
3) Control operating costs thanks to up-to-date information
systems.
• The concept of a global brand have been key factors for
Mango's sustained growth over these years.
Hinweis der Redaktion
The year 1999 would be a milestone for the company and a turning point in its process of international expansion. The opening process of its wholly-owned shops abroad reached its maximum with the inauguration of 42 establishments. In this same year the large shop of the chain in the Opera area of Paris was opened.From 1999, the frequency of opening wholly-owned shops abroad lessened progressively until 2002, when the rate of growth became negative. In this exercise establishments were closed in Germany (1), Andorra (1), Argentina (2), Brazil (1) and the UK (1), until there was a total of 6 closures and only two openings.This stage lasted hardly six years. In 2003 it left the Argentinean market completely, closing 4 establishments which were still in its possession. One year later it sold a franchise of its shops in Chile; and in 2005, it did the same with 8 shops in Israel. Leaving behind a multimillion investment.