On July 15, Mango, one of Europe’s leading fashion groups, reported over Є1.54 billion ($1.68 billion) in revenue for the first half of 2024, marking a 6.3% increase year-over-year. Strategic collaborations, a focus on quality and aggressive expansion have driven this success, according to the company’s Margarita Salvans.
“All of our collections and collaborations are centered around our Elevate strategy,” said CFO Margarita Salvans, referring to an element of the company’s 4E Strategic Plan, launched on March 11. “This reflects our value proposition of delivering aspirational, quality products that reflect Mango’s unique style.”
The 4E Strategic Plan focuses on four areas — Elevate, Expand, Earn and Empower — which are tied to improving product quality, growing the company’s store network, increasing profitability, and strengthening its workforce and customer engagement, respectively.
Mango has elevated its collaborations by partnering with high-profile names. It teamed with Victoria Beckham for a Mango Woman collection that launched on April 23 in the U.S. and with Boglioli for Mango Man, with a collection launching in the states in October 2023. All collaborations are designed at the company’s Hangar Design Centre in Barcelona.
“We’ve been thoughtful about pursuing collaborations that advance our vision of making fashion trends accessible to more customers,” said Salvans.
Mango opened 57 new stores in the first half of 2024 and plans to add 30 new stores added to the U.S. market this year. It aims to exceed 2,800 total stores by the end of 2024. Immediate goals include growing its presence in the U.S. and opening more than 20 new stores in the U.K., including its first in Northern Ireland.
“Brick-and-mortar allows us to connect directly with our customers in meaningful ways that are difficult to replicate online, including by delivering targeted products and trends to specific countries and regions,” said Salvans.
Additionally, Mango has been expanding in India. India’s retail market, projected to grow to over $1.8 trillion by 2030, according to insights from consulting group BCG, presents a significant opportunity for the company, driven by a burgeoning middle class, rising disposable incomes and rapid e-commerce adoption which is expected to reach $350 billion by 2030.
Despite its focus on physical stores, Mango’s online channel now represents nearly 33% of total turnover. Salvans noted, “What is truly relevant for us is omnichannel and offering the best customer experience in each channel.”
Mango has been making investments in technology, including AI capabilities. The company leverages AI across its value chain for pricing and personalization, and launched its first campaign created entirely by generative AI for a Mango Teen collection released on July 11.
“We’ve developed more than 15 different platforms that apply artificial intelligence,” Salvans said. “This helps us stay ahead in a competitive market by amplifying creativity and assisting with advertising efforts.”
Mango has taken a data-driven approach to managing its complex international business outside of Spain, which accounts for 78% of its turnover. “Since Covid, we have become a more resilient and flexible company,” Salvans said. “We’ve significantly enhanced our global knowledge [to anticipate and mitigate risk] and continuously leverage online data to inform our decisions, ensuring we’re delivering the right products and trends to the right countries and regions.”
Mango’s specializes in simple elegant pieces that are re-released if successful. It offers inclusive sizing through 4XL, often features older models in its marketing and backs a strong loyalty program, “Mango Likes You”, which has grown to 4 million members since launching in 2019.
In addition, the company’s sustainability efforts show significant progress. It moved production closer to Europe in 2020 and has increased its use of sustainable materials. By 2025, Mango aims for 100% of its cotton to be sustainably sourced, 100% of its polyester to be recycled, and all cellulose fibers to be of controlled and traceable origin.
Earlier this year, Mango pulled back on discounting and raised prices across some of its ranges, including dresses, also contributing to its strong financial performance. The company has no debt and no external investors, allowing it to focus fully on its strategic goals. “Our financial independence allows us to make decisions that are in the best long-term interest of the company and our customers,” Salvans said.
