Mango’s new strategy, which was unveiled as it announced record sales and doubled profit in 2023, aims to take the company’s annual turnover to €4bn by 2026.

Toni Ruiz, CEO of Mango, said in a statement: “The work carried out in recent years is bearing fruit: we are growing above the market, we are profitable and we are financially healthy.”

Mango’s ambitious new plan focuses on four key areas: elevate, expand, earn and empower, which it calls its '4E' plan.

Ruiz added: “Our enthusiasm and passion will be fundamental to achieving the new objectives that we set for ourselves today in the 4E Plan.”

Just Style attended the press conference where Mango announced its 2023 results and launched its 4E plan with Ruiz telling the room the company had managed to get the best results in its 40-year history, despite facing “a very challenging year”.

So what can the apparel sector learn from Mango’s success and its vision for the next two years?

Mango's new strategy focuses on design

Mango’s ‘elevate’ goal will see the company focus on strengthening its brand value, making its proposition more aspirational and embracing its “unique style”, with all the company’s clothing still designed at its head office in Barcelona.

While the retailer looks to be focusing on quality and a more premium offering, this does not necessarily mean upping its prices. "For many items prices have not increased, but the price mix of our collection has," Ruiz explained.

It’s clear that design – and quality - is key for Mango's plans and it sees this as one of the key differentiators from its competition. With more than 500 employees at the site, Mango said it is able to translate global fashion trends through two large, cohesive global collections and periodically added new product capsules.

More than 18,000 garments and accessories are created by the team each year. It takes an average of seven to eight months between the initial design and product launch in stores.

Mango's key markets for growth

Under its ‘expand’ goal, Mango will continue to invest in its stores, as it sets itself a target of 500 new locations by 2026. These openings will focus on key markets including Spain, the UK, France, Germany, India, Canada and the US.

The US is forecast to become one of Mango’s most important markets by 2026, with 30 new stores expected to open in the country in 2024.

In 2023, the company's US business entered Mango’s top five markets, in terms of turnover, for the first time.

Three-quarters of the new stores will be in international markets, as Ruiz noted the company aims to be a “global brand”.

Mango remains dedicated to physical stores

While recent years have seen many apparel brands step away from bricks-and-mortar stores, Mango is one of only a few fashion brands to have increased its number of physical stores since 2018. The company is doubling-down on the strategy in its 4E plan, aiming to open 500 more by 2026.

The strategy may come as a surprise to some in the apparel sector, after a number of notable fashion retailers have struggled with having a physical presence on high streets.

Swedish fashion retailer H&M confirmed to Just Style in January 2024 that it had proposed to close 28 stores in Spain. Department store Macy's in the US has also reported store closures as well as UK retailer Marks and Spencer in the UK.

“We believe in our stores,” Ruiz said with Mango planning to have more than a million sqm of commercial store space by 2026. In 2023 alone, Mango opened more than 130 new stores and refurbished 80 existing ones.

Mango’s ‘New Med’ concept, inspired by the Mediterranean, aims to showcase the brand’s aesthetic in store with warm tones and a neutral colour base alongside traditional materials. The new med stores also offer spacious fitting rooms and tailoring service in some locations.

The design also features eco-efficient lighting and air conditioning to incorporate the company’s sustainability goals. The format of each store, while designed at Mango’s head office, is tailored to its location, with store managers given some control over the layout.

Mango's blended online business

Despite the focus on physical stores, Mango also has a clear vision for its growing online business. The company sees the two elements going hand-in-hand in its expansion plan.

Mango pointed out it is “essential” that its physical stores blend with its online business, offering better customer service. “In a digital world, we can mix online and in-store sales,” Ruiz explained. He added: “The physical channel is a strategic point of contact with our customers.”

Mango’s New Med concept includes a specific ‘click and collect’ area and service to help make the shopping experience seamless. Mango also uses RFID technology to enable real-time inventory checks and has launched its own app for consumers.

César de Vicente, Mango’s global director of retail told attendees at the press conference the company’s physical stores “serve as strategic omnichannel hubs” for the company.

Mango’s online business has come a long way since its launch in 2000, when it offered sales to the EU only. This was extended to an additional ten countries by 2004 and expanded to the US in 2006 with Mango partnering with UK-based online giant Asos in 2009.

Today, Mango describes itself as “one of Europe’s fashion companies with the highest penetration of the digital channel” in its business. Sales at Mango’s online business exceeded €1bn for the first time in 2023, as e-commerce accounts for more than 33% of its turnover.

Mango is also dipping its toes into the new online retail space. In January 2024 the retailer opened its first store on the Roblox gaming platform. Located in Roblox’s Outfit Shopping Mall, which is described as a realistic shopping centre set on a Mediterranean island, the virtual store allows users to purchase Mango Teen digital garments and products for their avatars. The virtual store is said to be based on Mango’s new med store concepts.

Fuelling efficiency with AI

Mango’s ‘earn’ goal sees the company focus on sustainable growth. The company’s chief financial officer Margarita Salvans told press conference attendees that Mango plans to focus on its profitability, investing in AI and other technology to improve efficiency. “We close the fiscal year without any debt,” she added. “This allows us to face the strategic challenges.”

Looking at recent developments its clear that Mango is heavily investing in AI software to help achieve its efficiency goals.

Since 2018 Mango has developed more than 15 machine learning platforms (MLEs) to use AI across its supply chain. This includes innovations in pricing and personalisation. It also uses 'Lisa', an internal conversation generative AI platform, which helps employees and partners make improvements across the business.

Life Collection is another platform that launched in 2022 and follows new Mango products from conception through to sales. It allows team members to track each item through the process. It says the software offers communication between designers, stores and customers.

If that wasn't enough Mango’s design team is also using another AI platform called Inspire which has already been used to help co-create prints, fabrics and garments. Then there's an AI system called Midas that is being used by its business team to help set its pricing policy.

Mango's strategy explores new segments

Womenswear remains Mango’s main market with the segment accounting for 81% of its business and Ruiz described it as “our engine, our flagship”. However, Mango is also eyeing opportunities to diversify and expand its business in menswear and childrenswear.

Originally called Homini Emerito, Mango Man launched in 2008 and has become an increasingly key part of the brand. In 2023, Mango Man represented 11% of the group’s turnover in 2023, totalling €340m.

Mango’s Kids and Teen departments are also becoming increasingly key segments. The brand’s Kids range launched in 2013, with a focus on comfort and functionality, as well as trends. Mango Teen was added to the group, alongside Mango Home, in 2021. The Kids and Teen ranges saw strong growth in sales from €207m to €246m at the end of the year, and now represent 8% of total sales for the group.

Mango's strategy has 'team' at its heart

Mango also understands that both its current and future success will be determined by its team. With more than 15,500 employees already, Mango says that as part of its ‘empower’ goal it aims to attract the best talent and foster a sense of belonging with its current staff.

Ruiz concluded: “We are convinced that at the end of the day, companies and corporations are people.” He continued: “The cornerstone of Mango’s success lies in its personnel. We strive to become the preeminent employer.”