Explore Mango’s Apparel Sourcing Strategies (Updated January 2023)

About Mango

Mango is a fashion company based in Barcelona, Spain that was founded in 1984 by brothers Isak Andic and Nahman Andic. The company has grown significantly since its inception and now has over 2,700 stores in 109 countries worldwide. Mango is known for its trendy and high-quality clothing, which is targeted toward young women.

One of the critical factors in Mango’s success has been its ability to stay current and relevant in the fast-paced fashion world. The company regularly collaborates with top designers and influencers to create unique and fashionable collections that appeal to its target audience. Mango also closely monitors emerging trends and adapts its collections accordingly.

Besides clothing, Mango also offers accessories, such as bags, shoes, jewelry, and a home collection. The company has a solid online presence, with an e-commerce website that allows customers to shop from anywhere in the world.

In December 2022, Mango announced the Sustainable 2030 strategy, which “aims to move towards the full traceability and transparency of its value chain, in order to continue with the process of auditing its suppliers and ensuring that appropriate working conditions are being fulfilled for the workers in the factories the company works with around the world.” As part of the strategy, Mango will “focus its efforts on moving towards a more sustainable collection, prioritizing materials with a lower environmental impact and incorporating circular design criteria, so that by 2030 these will predominate in the design of its products and all its fibers will be of sustainable origin or recycled.”

Mango’s Apparel Sourcing Strategies (as of December 2022)

First, Mango adopted a sophisticated global sourcing network for its apparel products. Specifically, Mango’s apparel supply chain involves 1,878 Tier 1, Tier 2, and Tier 3 factories in 29 countries worldwide. About 31% of these factories produce garments (Tier 1), 19% supply fabrics (Tier 2), and 49% provide textile raw materials like yarns and accessories (Tier 3). Further, about 407 factories (or 21%) have vertical production capability (e.g., making both finished garments and textile inputs).

Second, like many EU fashion companies, near-shoring from the EU and Turkey is a critical feature of Mango’s apparel sourcing strategy. For example, about 44.8% of Mango’s Tier 1 garment suppliers were EU based (including Turkey), whereas Asia suppliers only accounted for 54%. Likewise, about 34% of Mango’s Tier 2 fabric suppliers and nearly half of its Tier 3 yarn and accessories suppliers were also EU based. The result reflects the EU’s intra-region textile and apparel trade patterns, supported by the region’s relatively complete textile and apparel supply chain. In comparison, US fashion companies typically source more than 80% of finished garments from Asia, and most of these garments also use Asia-based textile raw materials.

Third, measured by the number of suppliers, Mango’s top Tier 1 apparel production bases include Turkey (187 factories), China (176 factories), India (135 factories), and Italy (107 factories). Industry sources further indicated that between 2021 and 2022, Mango primarily sourced from Turkey and India for Tops (69% and 78%, respectively). Mango’s imports from China and Italy were more diverse in product categories (e.g., dresses, outwear, bottoms, and swimwear). On the other hand, Mango’s apparel imports from Italy were much higher priced ($107 retail price on average) than those from the other three countries ($38-41 retail price on average).

Fourth, the factory size and vertical production capabilities of Mango’s suppliers seem to vary by region. Notably, Mango’s Asia-based suppliers are more likely to be large-sized (with 1,000+ employees) and offer vertical production (e.g., making both finished garments and textile input). Mango’s Africa and America-based suppliers were relatively small-sized or lacked vertical integration.

By Sheng Lu

Author: Sheng Lu

Professor @ University of Delaware

2 thoughts on “Explore Mango’s Apparel Sourcing Strategies (Updated January 2023)”

  1. Mango, a fashion company from Spain, is a good example of the high quality, high-end apparel that the developed countries in the EU are known for. Mango’s supply chain has bases in EU, Asia, and Africa, taking advantage of the global sourcing network for its Tier 1, Tier 2, and Tier 3 supplier base. Italy provides much of Mango’s higher retail-priced apparel (average $107 as compared to retail prices of around $40 from Turkey and India, both emerging countries). Mango’s business strategy makes good use of the EU intra-region supply chain (45% Tier 1, 35% Tier 2, and 50% Tier 3 suppliers for apparel), while also having a diverse sourcing chain with 1878 factories in 29 countries throughout EU, Asia, and Africa. This combination takes advantage of near-sourcing from the intra-region suppliers and Turkey (with benefits of faster shipping times and FTA benefits) while allowing diversity from having outer region suppliers (with benefits of greater diversity of yarn and fabric production, in addition to apparel manufacturers). Another benefit of the diverse supply chain is lessening risks related to sourcing, environmental, social, and political concerns from any one area. The strategy of having two textile-to-finished garment options would also reduce risk. In addition to having a supply chain among countries within the EU, 20% of the Asian factories and 10% of the EU factories have the capacity of textile-to-finished garment capability. Mango seems to take sustainability seriously, having implemented their ‘Sustainable 2030 strategy,’ important these days when sourcing in many locations across many countries.

    1. Can US fashion companies also source more locally from the Western Hemisphere and bring the supply chain closer to home?

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