Mango doesn't take a cookie-cutter approach to merchandising. "Our stores are merchandised according to climate, population and taste," Gomez said. "We have a Siberian collection for cold countries. We have an Arabic collection for the Middle East. It uses lighter fabrics and different designs. For example, we make skirts longer to cover women's feet. As far as sizes, we do smaller sizes for Asia. We're learning from the market. We had the idea that the U.S. was larger sizes, but then we opened a store in Los Angeles, which has a big Asian population, we were unprepared because we didn't have size 0."

Mango engages European and American designers for what it calls the New York and Paris collections. They are produced four times a year, and prices are 20 percent above those of typical Mango fare. Unlike H&M, which has collaborated with Karl Lagerfeld and Stella McCartney, among others, Mango keeps the names of the designers secret, preferring to allow the clothes to stand on their own merit.

The retailer also produces Limited Edition collections such as the line designed by Penélope Cruz and her sister, Mónica, which is now in stores. "We thought Penélope was a good link," Gomez said. "She's from Spain and is well known in the U.S. With all these collections, we are trying to add value for our customers." Milla Jovovich has designed another collection featuring dresses and skirts.

Mango's take on fashion is a bit more refined than the look of similarly priced brands. The winter collection features short-sleeve tops in ethnic prints for $45, a plaid tunic with front pockets by Penélope & Mónica Cruz for MNG by Mango, $89, and a sleeveless color-blocked dress, $79.

"We want to be elegant," Gomez said. "We want to dress a woman from the beginning of the day to the end of the night, from jeans to dresses. We want to be sexy but not too revealing....We want to make women pretty and sexy and feminine at the same time."