British leisure time

Topics: Online shopping, Retailing, Electronic commerce Pages: 5 (2976 words) Published: October 24, 2014

Module Title: The Theory and Practice of Strategic Management Module Code: PM018
Tutor’s Name: Ken Kaweesa
Student T-Number: T0014344
Student Name: Yuqing Chen
Word Count: 2397

1.1 Background of H&M
H&M is a leading global fashion company, offering affordable and good quality fashion for women, men, teenagers and children around the world (H&M, 2014). To ensure the best price, H&M (2014) claims that they have no middlemen, buy right items in large volumes from the right market. Also, they have their own designers, pattern makers and buyers, and they work as teams to create the collections and make sure the collections are adapted to customers’ demands. According to H&M (2014), the first store was established in Västerås, Sweden in 1947 by Erling Persson. Moreover, Persson can came out this idea because of a business trip to America, during this trip he was introduced to the America’s high-volume efficient outfits that Barneys and Macy’s carried (Göransson et al, 2007). He brought this retail idea back to Sweden. After around sixty years development, today H&M has approximately 3,200 stores on five continents in 54 markets and about 116,000 employees worldwide (H&M, 2014). In addition, the online store is available in ten European countries and the USA (H&M, 2014). Finally, the overall turnover in 2013 was over SEK 150 billion including VAT, which increased by 9 percent in local currencies (H&M, 2014). Besides, according to Adbrands (n.d.), H&M’s majority international competitor is Inditex, owner of Zara, which is the world No.1 apparel company. Current competition also includes other fast fashion brands, for example, GAP, Topshop, Forever 21 (Lynn et al, 2009). Additional, since all the rivals have similar business concept, which offer affordable fashion, hence, the context for H&M is challenging. Aims and objectives

Asia is an important expanding role in the whole H&M’ rapid increasing. China is the biggest expansion market in 2013 and planned to be H&M’s largest expansion market in 2014 (H&M, 2014). Specifically, in 2013 the number of stores in China increased 53 percent on 2012 to 205 stores (H&M, 2014). However, as the greatest expansion market, China does not have H&M online shop. Moreover, Clemes et al (2014) suggest that China is the largest Intenet market in the world. Therefore, H&M should invest in the biggest potential market to gain more profit. The aim of this report is to recommend H&M online store marketing strategies to achieve more advantage in China market. In this report, Porter’s Five Forces will be used to analyze the current online shopping industry in China and SWOT analysis will be used to analyze what H&M already done. After literature review, recommendations will be given to gain long-term advantage. Literature Review

2.1 China online shopping industry
According to Internet World Stats (2012), China has the largest number of internet users, estimated at about 530 millions and the figure is expected to rise in the following decade. Due to convenience and good deals of online shopping, Chinese people really enjoy shopping online. iResearch (2014) demonstrates that GMV (Gross Merchandise Volume) of China’s online shopping market rose 39.4% to 1.84 trillion Yuan in 2013. Moreover, for the next following 5 years, the number of GMV is expected to grow to 4.45 trillion Yuan by 2017 (as is shown in figure1). Currently, C2C (consumer-to-consumer) model occupies the largest segment in the online shopping market, which is 59.5% (Clemes et al, 2014; iResearch, 2014). However, B2C (business-to-consumer) model increases rapidly, as figure 2 show that B2C model market share will overcome C2C and reach 52.7% by 2017. This may because comparing with C2C, B2C can offers better quality and credibility goods. And with the development of wage and living standards, Chinese shoppers are care about the goods...

References: Adbrands. (n.d.). H&M : Hennes & Mauritz (Sweden). Retrieved April 15, 2014, from:
Avila, R
Chen, J., Jin, Y., Kour, C., Li, M. M. & Liu, Y. L. (n.d.). H&M Hennes & Mauritz AB Case Synopsis. Retrieved April 07, 2014, from:
Clemes, M., Gan, C
Göransson, S., Jönsson, A. & Persson, M. (2007). Extreme Business-Models in the Clothing Industry- A Case Study of H&M and ZARA. Retrieved March 2, 2014,from:
H&M (2014)
H&M (2014). H&M Annual Report 2013. Retrieved April 12, 2014, from:
H&M (2014)
Kaye, L. (2012, April 10). H&M, The Ethical Fast Fashion Leader?. TriplePundit. Retrieved March 1, 2014, from:
Lynn, H., Bennett, S
iResearch (2014). China Mobile Shopping Market GMV Hit RMB167.64 Bn in 2013 with Fast Growing Penetration. Retrieved April 08, 2014, from;
iResearch (2014)
iResearch (2014). iResearch Releases China E-commerce Forecast. Retrieved April 08, 2014, from;
Wei, Z
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