Mango: Outsourcing of Non-core Activities to Keep up with Fashion

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During the first few years (till 1996), Mango concentrated on gaining more knowledge about the business in which it was involved and consolidating its product and store concept. It also brought in new technologies to its distribution system. These systems helped the company produce garments and accessories according to market demand. During this time, it consolidated its position in the local market and a few neighboring markets. Mango also defined its brand image, interior design, price, quality, and other aspects, which reflected its brand...

Design was one of the core activities of Mango and it was done in-house at a centralized location in Barcelona. Design was a key element in Mango's activities and was reflected in all aspects of its business, right from the design of the clothes and accessories to the design and interiors of stores, displays, catalogues, and even the carry bags given to customers. The company was of the view that design was an important aspect that attracted customers to its stores...

Mango instituted 'El Botón - Mango International Fashion Awards' (El Botón) — with the aim of discovering and attracting nascent fashion design talent from around the world, and providing them with a platform to showcase their collections. The competition was open to designers not older than 35 years, who had produced at least two womenswear collections. Mango commercialized their collections and gave them the opportunity to design a collection for it...

Mango used several proprietary systems to determine the number of garments to be produced in each design. All the styles were given a set of traits and assigned a label. Similarly, all the stores, depending on the geographical location, climatic conditions, social conditions, culture, etc, were assigned different traits. Mango used a proprietary stock replenishment system to match the traits of clothing/accessories with the traits of stores, and determine the types of garments to be sent to different stores...

Manufacturing was completely outsourced at Mango. When it came to sourcing, some of it was done by Mango and the rest was outsourced. As the company grew, by 1988, it had 13 outlets across Spain. It was then that the company realized the need for an improved production and inventory system. In 1994, the company implemented a business management system on which the later versions of the company's production and inventory management were based...

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