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Mango River Island

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MANGO

History:
In 1984 MANGO/MNG opened its first store on
Barcelonas
Paseo
de
Gracia.
A year later, MANGO/MNG had five outlets in Barcelona
and from that point commenced its expansion in the
domestic market, with the opening of a store in Valencia.
What was initially a small workforce had begun to
grow:
by
1988
the company had 13 sales outlets in Spain and the need
for a better system of stock control, logistics and
distribution
had
become
clear.
During this period, production systems based on the justin-time philosophy were developed, and the concepts of
the product, store interiors, quality, price and the brand
image were defined. This solid business approach is
what has given MANGO/MNG its position as a leading
brand in the textile sector.
In 1992 MANGO/MNG opened its 99 th store in
Spain and from that point, its international expansion got
underway with the opening of two stores openings in
Portugal and France. Two years later, the business
management system which is stillin place today, based
on specialised and co-ordinated teams, was introduced.
The highly competitive nature of the Spanish textile
market, and MANGO/MNGs determination to conquer it
have been the key to our success outside Spain. In 1997,
for the first time, international turnover exceeded
domestic turnover, and in 2010 it accounted for 81% of
total turnover.
Currently, MANGO/MNG has over 10,000
employees. The headquarters have a total surface area
of 164,000 m2. However, beyond the figures,
MANGO/MNGs greatest asset is its people, a young and
enthusiastic workforce, with an average age of around 30
and of which 80% are women.
Despite such strong growth, the original spirit of a
dynamic company remains alive today. Nobody who
works at MANGO/MNG, including the founder, is referred
to with a formal address, and everyone is easily
accessible. The company has based its culture on human
relationships, teamwork and continuous training.This is
why the company is often described as a people
company, in which strong international growth is
combined with a friendly and informal atmosphere.

Benchmarks:

100% Spanish capital


1984-First MANGO/MNG store on Barcelonas
Paseo de Gracia
Second-largest exporter in the Spanish textile
sector
More than 2,000 MANGO/MNG stores in 140
countries
10,000 employees worldwide
Over 2,500 styles every season
100 million articles produced every year

Mission:
People matter most.
MANGO/MNGs target market is key to the companys
activities
Vision:
To be present in every city in the world, aware that we are
competing at the highest level, and not to lose sight of the
values which permeate the MANGO/MNG culture:
HUMILITY, HARMONY, AFFECTION
A positive attitude and leading by example.
Strategies:
(1) Day to day management based on continual
improvement:

STRENGTHENING OUR TRAINING


PROGRAMME
CREATING A CLIMATE FOR THE
CONTRIBUTION OF IDEAS
HUMILITY, HARMONY, AFFECTION
CONTINUOUS SELF-EVALUATION

(2) THE PEOPLE


MANGO/MNGs greatest asset is its people. Above all, the
secret lies in our faith in a team of motivated and flexible
professionals, capable of
fostering and adapting to change. Professionals who
contribute ideas in order. to bring MANGO/MNG closer to
the highest possible number of women.
(3) THE CONCEPT
What sets us apart is our highly-defined concept. The
MANGO/MNG concept arises from the interrelation
between a quality product with an original design and a
coherent and unified brand image. Dressing the urban and

modern woman and meeting her daily needs, is the


formula which we have analysed, adapted and applied to
each country we operate in: this has been, and remains,
one of the keys to our commercial success and
international prestige. Furthermore, the brand image is
reinforced by its stores, which represent the calling card for
the brand and create a dynamic atmosphere to match the
personality of its customers.

characteristics make it more suitable. It should be noted


that Mango has placed special importance, from its
beginnings, on the location of the retail outlet (major
shopping centers or in the main commercial avenues in
cities); to the establishments' characteristics (illumination,
space, decoration and shopwindow) which allows it to
maintain certain criteria in interior design, image and
product exposure and its features.

(4) THE MANGO LOGISTICS SYSTEM

Problem:
1) volatility in fashion which means an increase in the
number of collections/year, a reduction in the time between
collections and an increasing importance in stock
management;

MANGO/MNG has its own logistics system which has


developed progressivelysince our first store opened, in
1984, until the present day, in which MANGO/MNG is now
established as the second-largest export company in the
Spanish textile sector.In order to achieve full
implementation of its system, MANGO/MNGdecided to
establish a sale-or-return system with its franchisees.
Approximately 4 years ago, MANGO/MNG completed a
logistics systemwith its own unique personality, acquiring
and adapting the latest technology, making it possible to
classify and distribute 40,000 garments an hour.Its
warehouse has a storage capacity of 340,000 boxes, in
other words 15 million articles.
The MLS (MANGO/MNG LOGISTICS SYSTEM) is based
on speed, information and technology. Its aim is to ensure
that each sales outlet (over 1,750 stores around the world
at the end of 2010) has the stock it needs to meet
turnaround speeds and sales forecasts at any given
moment. We guarantee continual renewal of merchandise,
and productionat the pace set by market demand, not only
in variety but also in volume.
MANGO/MNG currently has 3 distribution centres located
in Barcelona, Shanghai and Hong Kong. In early 2011, the
company started construction on its new Can Montcau
logistics park, located in Lli dAmunt. This logistics centre
will be equipped with the most state-of-the-art technologies
in Europe. From this site, clothes will be distributed to
every country in the world in which MANGO/MNG is
present, except China, where the brand already has two
small local logistics centres.
(5) GROWTH STRATEGY
Mango Group's growth strategy at an international level
has been based on direct investment in establishments, a
franchise system and the development of their own
management systems. This strategy has been undertaken
through the investment of their own resources allowing the
company to continue to function like a small company
giving it flexibility and agility when taking decisions.
The franchise system has represented a quick way to open
stores, disseminate the brand, find good locations and
increase production. This system has been carried out
mainly in countries where cultural and administrative
characteristics are very different and it is therefore more
appropriate that management is undertaken by people
from that country. It has also been applied in cases where
it contributes to a good location and when market

2) an increase in competition;
3) more pressure on the products' final price;
4) a decrease in productive activity value as a
consequence of the increase in imports in countries with
more competitive labor costs and
5) an increase in the weight of the brand leading to greater
investment in marketing activities

Results: 2010 Data


TURNOVER:
(1) MANGO/MNG Chain 1.585 billion
(2) Consolidated Group MANGO/MNG Holding 1.270
billion
% OF TURNOVER:
Domestic19% - 301 million
International 81% - 1.284 billion
Stores:
Net increase in number of stores: 380
Number of stores at 31/12/2010: 1,757
Philippines: 24 stores
Personnel:
Total direct workforce: over 10,000 employees
Headquarters Surface:
164,000 m2 surface area
Mango Formula:

In-house fashion design


Brand style
Thinking global, acting local
Distribution channels
Logistics

Production Systems:
All tailoring activity (complements and garments) takes
place through third party companies, about 200 suppliers
throughout the world. New suppliers are included every
season (manufacturers, raw material suppliers, etc.) to
cover technical requirements and the increase in
production according to the: manufacturing time, price of
garments, technology, capacity, quality, organization,
professionalism and international experience.
Collaboration with suppliers is long term. Occasionally they
visit the headquarters to have: (1) more direct contact; (2)
jointly analyze and plan the different manufacturing
aspects, as well as the business in general; and (3) control
the quality of garments through a computer program.

RIVER ISLAND
History:

It was Bernard Lewis who founded what would later


become River Island, first with a wool shop based in a lockup garage in the East End, and then later opening sturdier
premises on Holloway Road in north London in 1948,
trading under the name Lewis Separates selling highquality working menswear. By 1955, Lewis had embarked
on the more ambitious project of becoming a label,
designing and selling its own ranges.
River Island has a history of reinvention. Starting life as
Lewis Separates in 1950s, becoming Chelsea Girl in the
1960s and finally River Island in the late 1980s. Paul
Lewis contributed creative thinking during a crucial time in
the development of the new River Island image. The brief
was to create the most exciting fashion retail environment
in the UK. Working as part of a small creative team, we
helped to develop one of the great retail hits of the decade.
The resulting stores worked superbly, with increased
turnover, greater individuality and winning a clutch of major
industry awards including the Drapers Record Best
Fashion Retailer of the Year.
Timeline:
1948: Bernard Lewis starts selling knitting wool from The
Wool Shop on an East London bomb site
1955: Lewis Separates, as it has become known,
increases from five stores to nine
1965: The 70-store empire is rebranded Chelsea Girl
1982: The first menswear store is launched Concept Man
1988: New brand, River Island, launched
1991: All Chelsea Girl and Concept Man shops rebranded
as River Island
Signature:
Love fashion. Love River Island.
With over 60 years of fashion retailing experience, River
Island is one of the most well-known and loved brands on
the High Street.
At River Island we are renowned for our stylish, affordable
fashion. The unique touches we bring to our collections
help us standout from the rest of the High Street. Our
customers can always rely on us for great going-out looks
and occasion wear, amazing denim and fabulous bags and
shoes. We pride ourselves on being the perfect store to
pick up everything you need for a brand new head-to-toe
look.
Vision:
At River Island we always aim to bring new and original
fashion to you, with great design at the heart of everything

we create. Almost all of our products are designed inhouse and, as we have one of the largest design teams on
the High Street, we are proud that we can deliver fabulous
new fashion in-store and online for you every single week.

Stores:
350 store across UK, Ireland and internationally
throughout Asia, the Middle East and Europe
6 dedicated online sites operating in 4 currencies
Suppliers:
River Island operates a global supply chain network,
sourcing and manufacturing its products throughout the
world.
Our supply chain partners are important to us and
building strong, long term and ethically responsible
manufacturing relationships are key to our continued
success.
Corporate Social Responsibility:
At River Island there is an underlying and long standing
commitment to ethical trading based upon the belief
that business can be both profitable and responsible.
We have always believed that building meaningful long
term relationships with employees, suppliers and
communities is good business practice for us and is
what our customers expect of us. This is, and always
has been, the founding principle of our commitment to
Corporate Social Responsibility.
ENVIRONMENT
In all River Island stores, offices and warehouses we
are committed to operating in a way that is mindful of
the demand on our planet's limited resources. We have
incorporated the use of renewable energy sources into
our operations and reduced the levels of product
packaging. River Island also recycles and uses
biodegradable materials whenever possible.
What it offers:
River Island Clothing Co. Limited operates and
franchises a chain of apparel stores. It offers clothing,
dresses, tops, T-shirts/vests/sweats, coats/jackets,
leather/leather look jackets, capes/kimonos, blazers,
knitwear, jeans, skirts, trousers, shorts, leggings,
coordinates/matching
sets,
playsuits/jumpsuits,
swimwear/beachwear, and lingerie/nightwear; and
shoes/boots, bags/purses, accessories, jewelers,
watches, sunglasses, gifts, beauty products, and socks
for women and girls. The company also provides

clothing, T-shirts/vests, blazers, coats/jackets, chinos,


hoodies/sweatshirts, jeans, joggers, jumpers/cardigans,
polo shirts, pyjamas/onesies, shirts, shorts, suits, swim
shorts, tops, etc.
Strategies:
1) CHANGE OF NAME
Lewis gave his business its first real makeover in the mid1960s when the chain changed its name to Chelsea Girl.
River Island was adopted in 1988 when, Lewis says, it was
felt a totally new approach was needed to carry on
appealing to customers.
He says the name change came as part of a fashion retail
trend towards generic fascias, such as Topshop and Next.
The River Island name was the idea of Lewiss son
Leonard, who was chief executive at the time. One of his
ideas was to call it Oyster Island, why he chose River I
dont know, says Lewis.
The name change went hand in hand with other
modifications. We enhanced the whole visual approach,
the shopfitting and design, says Lewis. There was less
emphasis on price. Chelsea Girl was younger and there
was more emphasis on the price.

room of more than 70 people and that is one of the


elements that the business prides itself on.

River Island is the latest brand to dig down


deep into its heritage, returning to brandish the
Holloway Road imprint a new in-housedesigned menswear line. This culture (and of
course the address) has travelled through to
Holloway Road, a range of classic rugged, yet
comfortable and casual, menswear with a
contemporary edge.
Were talking about earthy, blue collar-style
workwear, but with a definitively modern twist.
Camel browns and rust reds make up the muted
but
stylishly
understated
colour
palette,
complemented by distressed-look denim. The
sweatshirts and T-shirts, starting at 18, are also
given a faded, washed-out look.
Also making up the collection will be a selection of
loose denim shirts, chunky zip-up hoodies and
padded gilets (or body-warmers as theyre known
this side of the pond), featuring stylish leather and
suede detailing on the shoulders and elbow
patches.

2) DESIGN
3) ONLINE STORE RETAILING

River Island has an in-house design team at


its West London Headquarters.

The retailer also made its fashion design more


professional. Today, River Island has a design

As of 2012, River Island no longer has physical shops in


Singapore. In 2013, online fashion retailer Zalora began
acting as a bridge between River Island and most of
South-East Asia.

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