Professional Documents
Culture Documents
• Known for its fast-fashion clothing for men, women, teenagers and children.
• H&M and its associated brands operate in 62 countries with over 4,500 stores
•It is the second largest global clothing retailer, just behind Spain-based Inditex
(parent company of Zara).
•
•The company has a significant online presence, with online shopping available
in 32 countries, COS in 19 countries, Monki and Weekday in 18 countries each,
& Other Stories in 13 countries, and Cheap Monday in 5 countries.
• 1947: Earling presson founded ‘H&M’ and opened his first store ‘Hennes’ in
vasteras, swedan. His aim was to offer customers fashionable clothing at low
price.
• 1964: The company started to expand when the second store was opened in
norway.
• 1968: Preston bough hunting company ‘Mauritz Widforss’ and merged it with
‘Hennes’ creating the name “H&M”. They expanded their clothing range to men
and children.
• 1970-1980: In the 70’s and 80’s ‘H&M’ continued to expand with stores
opening in UK, germany ,France and The Netherlands.
• 2000: H&M’s first store was opened in US in New York. Over 280 stores have
been opened since.
• 2010: H&M continues to expand in Korea,Israel and Turkey.
Continue expanding
Be more “ Environment- friendly “.
Make a good workplace for employees
To offer people trendy clothes for cheap price.
Price-competitiveness
Very efficient management of product and
logistics
Effectiveness in market research
Internet - marketing
China
Hong Kong
Japan
Singapore
South Korea
H&M’s growth target is to increase the
number of stores by 10 to 15% per
year and at the same time increase
sales in comparable units.
• Fashionable and trendy
• Women 15-40 years of age, Men,
Babies/toddlers, kids, teens, college
graduates, social status,
• Most popular segment : females 20-
27 years
• Brands approach is to use our influence wherever possible to promote good
practice and rise awareness not only among our suppliers and their employees
as well as others along our value chain. We believe that working together in
partnership is the best way we can make a positive difference (H&M,2015).
• H&M is a ‘fast-fashion’ bussiness with 2206 stores in 43 countries and 94,000
employees worldwide.
• H&M as well as owning its own retail stores it also operated as franchises in
middlle East and North africa.
• H&M has launched an independent brand known as COS in Europe.
• H&M philosophy is ‘To bring you fashion and quality at the best price’.
• The bussiness model is commonly refereed to ‘cheap ad chit’.
• H&M’s supply chain strategy is a continuous search for promising markets,cost-
efficiency in production of goods,and reduction in lead times for their retail
inventory.
• H&M’S annual report(2008) emphasizes that “quality relates to both, products
exceeding customer expectation and also customers being satisfied with the
company itself”.
• H&M is driven by strong values such as commercial mind set,simplicity,constant
improvement,cost consciousness and entrepreneurship.
• Their aim is to grow the company year by year by 15%
•700 Outsources
Largest organic cotton suppliers Asia & Eurpe •Finished clothing
customers •Quality control:Training shipped to central
&Audit storage in Germany
•CSR Activities •Mostly via sea
•H&M operates from leased store premises, through internet and catalogue sales and
some franchise stores.
With athleisure ruling the scene, H&M brings trackwear that exudes
an faux-athletic vibe — graphic tees and oversized hoodies stamped
with statements of the ‘good life’.
Swimwear, a top-selling genre for the brand.
A rib-knit viscose
blend with a turtle
neck and long
sleeves.
• Cardigans
Cardigan in soft,
fine-knit cotton
with a round neck
and buttons down
the front.
H&M offers high quality clothes at a premium price. The major
competitors of H&M are GAP and Zara.
High quality and considerably lower prices attract the youth and hence
leads to increase in sales for the company.
High importance is given to customer relationship management.
In case of any complaints the staff at H&M puts in every effort to resolve
them at the earliest.
There is a customer care number through which the customer queries are
resolved. Staff at H&M outlets help the customers in selecting the best
merchandise for them.
Thus the service and delivery time is very quick thus gaining satisfied
customers.
Since H&M group has a wide range of product portfolio catering to different segments, it
uses multi-channel promotional strategy in its marketing mix.
• TV advertisements: H&M comes with creative ads which focus on its latest innovative
designs. Each brand handles its own marketing decisions. The ads are telecasted at regular
intervals and on channels mainly watched by youth, to increase its awareness.
• YouTube: H&M has its own YouTube channel where it comes up with unique ad
campaigns to engage with the customers.
• Digital Marketing: It indulges in excessive search engine marketing and social media
marketing to convert the potential buyers into consumers.
• Promo codes and discounts: Promo codes and discounts are offered during the end of
season sale. The discounts are offered on both online and retail stores.
• PR: Parineeti Chopra opened the first H&M outlet in India. Such stunts generate quick
publicity for the company.
• Sponsorships: H&M signed deal with The Weeknd, sponsors Caitlyn Jenner, sponsors
Musee Des Arts Decoratifs, Creative collaborations with high end designers and style icons,
Collaborations with pop stars and sport stars
• CSR: Water, Planet, Education, Equality
The employees at H&M are trained well at every level.
The work culture is very modern and employees are on a rotation basis at every
department and are motivated to innovate and come up with the best clothing wear.
H&M also tie up with many clothing designers throughout the world to make latest
trends in fashion.
The apparel is arranged to have a decent look which appeals to the customers.
The merchandise is of excellent quality and latest trends.
H&M is diversifying its portfolio and entering into more international markets.
User stories and recommendations are always welcomed by the brand which also
helps in customer engagement with the brand.
• H&M: The range includes everything from designer collaborations to everyday basics
and yoga wear.
• & Other Stories: Women wear: shoes, bags, accessories, beauty, ready to wear
• Cheap Monday: Denim, fashion collections and accessories for men and women. The
brand is connected with music and pop culture.
• COS: Classics and wardrobe essentials for men, women and children. The brand had
designs inspired by art and technology from across the world.
• Monki: On-trend lifestyle collections for young women.
• Weekday: It makes clothing for young and style aware young adults.
All these cover the product strategy in the marketing mix of H&M.
Parent Company H & M Hennes & Mauritz AB
Category Apparel and Accessories
Sector Lifestyle and Retail
Tagline/ Slogan Who’s next; Get ready to do some serious shopping; You look nice today
USP Collaboration of chic , stylish clothes along with a classic look at affordable prices
People who love to spice up their wardrobe and want to look uber stylish at all
Segment times
Women, Men , Teenagers who have medium to high purchasing power and have a
Target Group completely vibrant and rebellious attitude
Perfect combination of high class brands along with trendy fashion at affordable
Positioning prices
1. They are the one of the largest global clothing retailer
2. They have about 2300 stores in approx 45 countries and around 95000 people
employed under them
3. The store offers quality and trendy clothing at affordable price, we can say
designer clothes at department store prices.
4. Their overall delivery time is very low, it takes only 12 weeks for their products to
come from the design stage to the retailer phase.
5. Guest designers coming in for different lines in the store.
6. They also keep the prices affordable by using few middle-men and buying large
volumes cost consciously
7. They have been associated with celebrities and designers
8.They are present in many complimentary businesses which offers them better
Strengths control and flexibility
Contribution to retail brand strategy
•These Include,
Adopting ethical practices.
Improving working conditions,
Using natural resources responsibly,
Other project include community investments.
•To open online shops to countries where they
are not opened yet
H&M is going to strenghthen their position even
more
Planning to expand in all markets which are
expected to be the largest expansion markets :
•China
•United Kingdom
•USA