Why Mango's Business Model is so successful?

Mango is a globally recognized multinational apparel manufacturing company, based in Barcelona, Spain. Founded in 1984 by brothers Isak Andic and Nahman Andic, Mango specializes in designing, manufacturing, and selling clothing and accessories for women, men, and kids. The company is renowned for its stylish, contemporary fashion, blending the unique Mediterranean style with global trends. Mango operates in over a hundred countries worldwide, with thousands of stores spread across Europe, America, Asia, and Africa. The company's mission is to be present in every city worldwide, providing fashion-forward, high-quality products at reasonable prices. Business Model: Mango operates under a fast-fashion business model, characterized by quick inventory turnover and an efficient supply chain. The company designs its products in-house and outsources the manufacturing to a network of suppliers, primarily located in Asia and Europe. Mango manages a strong retail presence through its physical stores and a growing online platform. The company operates both company-owned and franchised stores, allowing it to expand its global footprint while minimizing operational risks. Mango is also committed to sustainability and ethical practices, implementing measures to reduce its environmental impact and ensure fair labor conditions in its supply chain. Revenue Model: Mango's primary source of revenue is the sale of its clothing and accessories. This includes sales from both physical retail stores and its online platform. The company has been increasingly focusing on its e-commerce platform, which has been a significant driver of growth in recent years. In addition to direct sales, Mango also earns revenue through its franchising model, where franchisees pay a fee to operate under the Mango brand. Furthermore, the company occasionally collaborates with celebrities and designers for limited edition collections, which not only boosts sales but also enhances the brand's image and visibility.

Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, attractiveness

Functional: quality, variety, sensory appeal

Advertising:

This approach generated money by sending promotional marketing messages from other businesses to customers. When you establish a for-profit company, one of the most critical aspects of your strategy is determining how to generate income. Many companies sell either products or services or a mix of the two. However, advertisers are frequently the source of the majority of all of the revenue for online businesses and media organizations. This is referred to as an ad-based income model.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Experience selling:

An experience in the sales model describes how a typical user perceives or comprehends a system's operation. A product or service's value is enhanced when an extra customer experience is included. Visual representations of experience models are abstract diagrams or metaphors derived from recognizable objects, actions, or systems. User interfaces use a range of experience models to help users rapidly comprehend what is occurring in the design, where they are, and what they may do next. For example, a software experience model may depict the connection between two applications and the relationship between an application and different navigation methods and other system or software components.

Fashion sense:

In any customized sense of style, the golden guideline is to buy garments that fit correctly. Nothing ruins an ensemble more than an ill-fitting jacket, shirt, or trouser, regardless of the dress code or the cost of the clothing. Personal Values Sharing as a Brand Identity A significant component of developing a company that fits your lifestyle is growing a business grounded in your beliefs.

Fast fashion:

Fast fashion is a phrase fashion retailers use to describe how designs travel rapidly from the catwalk to catch current fashion trends. The emphasis is on optimizing specific supply chain components to enable these trends to be developed and produced quickly and affordably, allowing the mainstream customer to purchase current apparel designs at a reduced price.

Franchising:

A franchise is a license that a business (franchisee) obtains to get access to a business's secret knowledge, procedures, and trademarks to promote a product or provide services under the company's business name. The franchisee typically pays the franchisee an initial startup cost and yearly licensing fees in return for obtaining the franchise.

Market research:

Market research is any systematic attempt to collect data about target markets or consumers. It is a critical aspect of corporate strategy. While the terms marketing research and market research are frequently used interchangeably, experienced practitioners may want to distinguish between the two, noting that marketing research is concerned with marketing processes. In contrast, market research is concerned with markets. Market research is a critical component of sustaining a competitive edge over rivals.

Online to Offline O2O:

Online to offline is a term (often abbreviated as O2O) used in digital marketing to refer to systems that entice customers to purchase products or services from physical companies while they are in a digital environment.