H&M- Brand and Distribution Strategy

Topics: Retailing, H&M, Online shopping Pages: 9 (2257 words) Published: July 12, 2013
Brand Analysis and Distribution Strategy

by DIANA CAMPOS

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Table of Contents

1. Intro: The H&M Hennes and Mauritz AB Group 2. H&M The Brand 2.1. Company Profile 2.2. Environment of the brand 2.3. Target consumer 2.4. Geographical extension 2.5. Turnover 3. Distribution Strategy 4. Conclusion Bibliography

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1. Intro: The H&M Hennes and Mauritz AB Group

The H&M Hennes and Mauritz AB Group is a Swedish multinational retail company, considered the second retailer in the world after Inditex. Started as the women clothing store Hennes in Västerås in 1947 by Erling Persson, nowadays own about 2800 stores1 in 48 markets 2, and it is employing around 104 000 people3. The group per se is formed in 1968 by the acquisition of fishing equipment store Mauritz Widforss, also in this year the men and children lines are implemented.In 1976 the first store outside Scandinavia opens in London, UK; as a consequence of the success of it, the 80s and 90s will be dedicated to the European expansion, just to be followed by the big worldwide expansion to US (2000), Asia, Middle East and North Africa. By 2013 the range of brands belonging to the group are H&M, H&M Home, COS, Monkey, Weeekday, Cheap Monday and the most recent Other Stories. They target different consumers and have achieved for the company a broad spectrum of potential markets. The actual chairman is Erling Persson’s son Stefan Persson, and the President and CEO is the grandson Karl-Johan Persson, who is leading the company with innovative strategies.

2. H&M The Brand 2.1. Company profile One of the cores of the H&M brand are the 140 in- house designers that work continuously to keep up with the fast changing fashion industry. Since one of the company main strategy is focus in the sustainability of their processes, “…the needs of both present and future generations should be respected in everything that we do”, they have been implementing different campaigns that this paper will discuss later on. 1 2

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Source: www.hm.com [Accessed 12.February 2013]) Source: www.hm.com [Accessed 12.February 2013]) 3 Source: www.hm.com [Accessed 12.February 2013])

The general keys of the brand are: Trendy, Accessible to all, Collaborations, Youthful and Wide assortment. 2.2. Environment of the brand -H&M Identification: Trendy RTW -H&M Differentiation: Collaborations with designers and celebrities strategy -Competitors: We identified Zara and The Gap as the main competitors for H&M, due to coincidences in target market and similar turnover. is H&M`s major competitor. Zara is a Spanish based brand, known to be the world's largest apparel retailer. They sell collections and Accessories for women , men and kids, online and in their 6000 retail stores. They target highly fashion- and price conscious women and men, as well as H&M does. Zara`s turnover in 2012 was 16 billion Euro. What Zara makes to H&M major competitor is the fact, that Zara also provides catwalk related top-styles for an affordable price, but without having designcooperations with popular Designers. Zara`s success is among others, based on their extremely fast fashion concept and production cycle.

, is an American brand and largest multinational clothing and accessories retailer in the US. Gap offers clothing, accessories and personal care products for men, women, children and babies, targeting mainly families i.e. people of each age group. In comparison to H&M, Gap sells exclusively basic and casual wear, without providing any designer influenced styles. Gap`s success is based on offering inventive American style for an affordable price. Their turnover in 2011 was 10,8 billion Euro (convertion rate= 0,7441583) Gap sells their products online and in 3248 stores worldwide. Gap counts to H&M`s main competitors because they also offer fast fashion for a reasonable price and because of their company size and turnover.

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-Price comparison:

Shirts Blouses Bottoms Blazers...


Bibliography: 2012. [Accessed 10.February 2013] Kensuke Kojima (2011). Uniqlo Syndrome. Toyo Keizai Shinpo Sha. ISBN 4-492-
76191-8 Tenkai Japan
er_of_fast_fashion [Accessed 1.February 2013] http://www.mobilemarketer.com/cms/news/social-
networks/13604.html[Accessed 12.February 2013] http://www.fashionologie.com/HMs-US-Online-Shop-Launch-2013-25187257 Press release (25 February 2009)
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