H&M in Japan

Résumé du document

Hennes and Mauritz, commonly known as H&M is a Swedish company selling fashionable inexpensive clothes. It a leading brand, whose fame is spread worldwide. H&M owns more than 1300 stores in 24 different countries. It is present in America since 2000, and recently entered Asia. The next destination where the company plans to expand is Japan. Japan's population is really attractive and constitutes a real potential as the Japanese are fashionable people. However, the company needs to analyze and gather more information about Japan and its market before entering the country. The report will first establish the macro environmental examination of the country, thanks to the SLEPT analysis, the 12C framework will describe every aspect of the market and the Hofstede analysis will develop the awareness of the Japanese culture. The second part will expose the main challenges that the company will have to face. The third part will determine which entry mode is the best suited for the Swedish company. Finally, the last part will analyze if the collaboration of the company with the famous singer Madonna will have beneficial impacts on the brand.

Extraits

[...] Beckham in some of its ad since 1998. They also had an association in 1989 with Madonna, but they had to stop the spot when the video clip of ‘'Like a prayer'' was deemed blasphemously by religious groups in the United States. This shows how much the choice of the celebrity is important, because the image and values of the personality are directly returned on the brand's image. The collaboration of H&M and Madonna 11) Facts Madonna has signed for a partnership with H&M last year. [...]

[...] Currency The currency used in Japan is the yen. It is a strong currency, relatively stable to a certain extent as its exchange rate has increased against the euro and the US dollar for a few months. Commitment / Contractual obligations. For a long time Japan controlled the trade to favour its national companies. There were many restrictions to the entry of foreign competitors. But this period is over as Japan has begun to open its borders and let foreign companies in. [...]

[...] o The labor force gathers 66.44 million people and is divided as follows[3]: agriculture: industry: services: o The unemployment rate is rather low: It reaches o The inflation rate reaches after a long period of deflation o Trade fact: Japan resorts to imports for several commodities such as machinery and equipment, fuels, foodstuffs, chemicals, textiles and raw materials. The largest trading partner is China. o The consumer spending has also been steadily rising over the last years. o The national currency is the yen. It has been rising since a few months against the euro and the dollar. Political o Japan is a parliamentarian democracy under the rule of a constitutional monarchy. [...]

[...] as Japan lacks of raw material. Japan mainly imports apparel from China-accounting for 80% of the total import. This is explained by the geographical proximity but also because of the cheap cost and diversity of the Chinese clothing offer. Competitors: The clothing retail market is rather big and really diversified. Many multinational clothing chains are already present: Benetton (which entered Japan in 1985 and which has 78 shops there), then Gap (1994), Zara (1997), Mango (2000) and finally Puma (present since the seventies through a license and since 2003 by a full acquisition of the license). [...]

[...] The next destination where the company plans to expand is the Japan. Its population is really attractive and constitutes a real potential as they are really fashionable people. However, the company needs to analyze and gather more information about Japan and its market before entering the country. The report will first establish the macro environmental examination of the country, thanks to the SLEPT analysis, the 12C framework will describe every aspect of the market and the Hofstede analysis will develop the awareness of the Japanese culture. [...]