H&M Marketing Communication

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History Of H&M Hennes & Mauritz: H&M by origin is a Swedish retail-clothing company, known for its fast-fashion clothing offerings. H&M was established in Västerås, Sweden in 1947 by Erling Persson. H&M‟s first store was opened in Sweden in 1947. (www1) At the beginning it was called Hennes (Swedish for hers) because they only sold cloth for women. In 1969 bought Erling, a company which was dealing with man´s clothing, and that store was named Mauritz. Together it becomes Hennes & Mauritz. (www2) H&M Mission Statement & Brand Value: "Fashion and quality at the best price" is H&M mission statement. It suits the image that H&M promote to the society, where they emphasis fashion and at the same time having good quality clothes in the best price as possible (reasonable price). The brand is driven by strong values such as simplicity, continuous improvement, team spirit, cost-consciousness and entrepreneurship (www3) as shown in Fig 1.


Enterpreneurs hip

H&M Values


Team Spirit


Fig 1

H&M Target Market: H&M being a fashion retailer is basically a B2C company which offers to sell a variety of fashion products including shoes, apparel, accessories, and cosmetics. H&M's marketing is

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targeted primarily at women however; the company offers merchandise for men, teenagers and children as we

Distribution Channels: The distribution channels are the only possible direct access for customers to consume their goods and services. H&M has 2,200 stores in 38 countries world wide even on online stores and through catalogues. This various types of distribution channels not only increase its popularity but become similar to a convenient store where customers can easily access to H&M’s goods and services. By the end of 2009 the group had total of 1988 stores of which: 23 COS stores, 35 Monki stores, 10 weekday stores and one cheap Monday store. 36 H&M stores are operated as franchises in the Middle East. The internet and catalogue sales are offered in Sweden, Norway, Denmark, Finland, Netherlands, Germany and Austria. H&M Business Model: Rappa(2003) defined business model as “the method of doing business by which a company can sustain itself” (www4) The business model employed by H&M is "distribution". A distributor buys a product and resells essentially the same product to someone else (Weill et al, 2005). Rather than owning their own production factories, H&M buys their merchandise from about 700 independent suppliers, mainly in Asia and Europe. (www1) H&M has about 16 production offices around the world, mainly in Asia and Europe. H&M employs about 87,000 people.

H&M THE BRAND: H&M offers fashion for women, men, teenagers and children. Though H&M buys his merchandise from independent suppliers but its collections are designed and created by around 100 in-house designers together with buyers and pattern makers. It also sells ownbrand cosmetics, accessories and footwear.

H&M Financials an over view H&M shares are among NASDAQ OMX Nordic‟s most traded shares. In terms of market value, H&M was the largest company on the Stockholm Stock Exchange at the end of FY 2008, with around 183,000 shareholders. The offer in H&M‟s financial communication follows the same pattern as our other communication. Through providing accurate and relevant information at, for example, press and telephone conferences, journalists and analysts get the information they need to do their job, while H&M‟s brand is strengthened. Its corporate objective is to increase global store numbers by 10-15% a year and Europe is its main expansion area which, along with positive like-for-like sales in the first nine months

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of 2010, will result in future share gains. (www5)

FIG 2 In 2008/09, group sales rose by 15%, mainly due to new store openings, but costs rose faster than sales. Margins weakened but remained above the 20% level, a...
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