Barcelona based global fashion retailer Mango reported record sales of over €3bn (£2.6bn) for the year ending 31 December 2023.
Building on this success, Mango announced its ambitious ‘4E Plan’, under which it intends to open 500 new stores by 2026 and grow revenues to €4bn (£3.43bn) over the same period.
Mango’s 4E strategy focuses on four areas:
- Elevate – reinforcing the differentiated value proposition of its lines.
- Expand – increasing the number of bricks and mortar locations in strategic markets.
- Earn – ensure that growth is sustainable and improve sales in the online business and existing store network. Technological development, data management, artificial intelligence (AI) and “operational excellence” are key priorities.
- Empower – develop its team and talent.
CEO Toni Ruiz said: “I am convinced that the new 4E Plan will help us strengthen our relationship with our customers, consolidate our business model and create value in a sustained manner, reinforcing us as a reference company in the sector.”
Mango was an early adopter of AI, having developed 15 different platforms since 2018. Mango uses these new technologies to enhance customer experience and in-house efficiency.
Despite plans to expand, globally Mango already has scale on its side, operating almost 2,700 stores worldwide.
And while in the UK it features on many leading retailer websites, including John Lewis, Next and Frasers Group, its plans for physical expansion may be critical to gaining a firmer foothold in the market as it currently has a limited presence outside London. Expanding into other major cities will help put Mango on a more equal footing with established brands such as Zara and H&M.
Challenges:
Despite its clear strengths, Mango operates in a crowded market in the UK and internationally. For instance, Shein and its ultra-fast fashion model has seen success in winning over customers with low prices, supported by its agile supply chain and effective use of AI to identify trends in fashion.
However, the emphasis Mango has placed on ensuring that it has a transparent and sustainable supply chain is a key differentiator, particularly compared to many fast-fashion brands.
Among more established fashion retailers, the competition is also stiff, with giants like H&M and Inditex able to target different customer groups via the various brands within their respective groups – a key point of differentiation versus Mango.