Fast Fashion: Mango jumps aboard to keep up with fast moving Zara

Zara’s introduction of fast fashion has taken the fashion industry by storm. Zara’s success with fast fashion was largely due to its utilization of supply chaining, the method by which a company controls every level of production of the good it is supplying. This method was supported and made possible by technological innovations. Fast data simulation combined with a large infrastructure of factories and warehouses in Spain allowed the company to work quickly and efficiently.

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Competitors were left asking, “How can we keep up?” The only option was to master fast fashion themselves. However, not all competitors could do so through supply chaining. Companies, like Mango, were left to pinpoint what they were good at and focus on their strengths while producing clothes quickly that accurately reflected current trends. Marcel Palnellas, Secretary General of the Esade business school, points out that this is exactly what Mango did. Mango took the opposite approach of Zara by focusing on their design and distribution of garments and outsourcing the manufacturing process. Palnellas also notes that technology is essential in Mango’s new business model. Technology allows Mango to collect data quickly and efficiently and also allow their logistics chain to work seamlessly. According the Mango’s CEO, Enric Casi, “Without the Internet, it would have been impossible to make a profit from a chain that has a traditional structure.” Palnellas notes that it took Mango roughly four years to set up the new technology to work alongside of their new business model. Casi then goes onto say that, “This integration is one of the things that has cost us the most but now we can monitor everything and make decisions by using information.”

Mango’s World Presence

 

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ImageMango has been focusing on moving their brand to the United States. One way that Mango is doing this is by placing their brand in J.C. Penney stores throughout the country. By strategically placing merchandise in J.C. Penney stores under the name “MNG,” Mango is expanding their customer base and marketing mango to American shoppers. This partnership is also beneficial to J.C. Penney because it is allowing J.C. Penney to jump on the fast fashion train and compete on another level with other U.S. department stores.

Where will Mango go next?

Check out this article for more information: http://www.wharton.universia.net/index.cfm?fa=viewfeature&id=1532&language=english

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8 thoughts on “Fast Fashion: Mango jumps aboard to keep up with fast moving Zara

  1. It took Mango four years to set up their new technology chain to help the business. This shows how difficult it is for GAP to restart and catch up the pace. Technology is so important that it determines a business’ future. Some company failed to do it, because there is such a big cost of money and time on the investment. However, this Mango case shows how the return is greater and can help in the long run.

  2. I thought this was interesting because when studying abroad last semester, Mango did seem to have a very large presence in Europe. Everywhere you went you would see an add that looked very high class but with very reasonable prices. It became that I could pick out on the street things from this store. It is very small so it isn’t an H&M feel but it has H&M prices. It really was like walking into a boutique. This is an effective business model because it plays upon its own strengths instead of simply copying the Zara Model

  3. I think something really important that we can take out of the last two lectures is that in order to be successful in the business world we have to specialize on that which we are good for. For example, Mango was able to identify that its strength was in the design of garments and in the outsourcing. Once this brand was able to figure its strengths out, it developed a business model that has helped it to grow in the market. This is what Professor Kane has often referred as “IT Competency” in class.

  4. Interesting post, I have actually heard of Mango before as well. I liked learning about their supply chain, especially in comparison to Zara. Nice job capitalizing on in class ideas.I’ll be interested to see what happens with Mango in the future.

  5. I am a firm believer in Mango and their potential to become just as highly-regarded of a fast fashion name brand as Zara. Although I may be biased because I am a huge fan of Mango’s clothing, I think their key to success will be the fact that they are the first to implement a particular manufacturing style—in this instance, it is their “focus on their design and distribution of garments and outsourcing the manufacturing process” (whereas Zara’s is the opposite). When it boils down to it, this factor alone leads me to predict Mango’s success in America in the near future. The brand is already very popular internationally; I first discovered Mango in Canada. The diagrams on this post were great and really helped with my understanding!!

  6. Pingback: Zara’s: Fashion Saviour or Creative Killer? | The Absence of Color

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