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.
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
Mango 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?
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