H & M's strategy

Résumé du document

H & M Hennes & Mauritz (H&M) is primarily involved in the fashion design and retail sale businesses. The company operates stores in 21 countries and is headquartered in Stockholm, Sweden. It employs about 31,700 people. The company recorded revenues of SEK 53,695.0 million (approximately $7505.9 million) during the fiscal year ended November 2004, an increase of 11.3% over 2003. The increase was primarily attributed to higher volume sales as a result of reduced pricing. The operating profit of the company during fiscal 2004 was SEK 10,667.3 million (approximately $1491.2 million), an increase of 15.7% over fiscal 2003. The net profit was SEK7274.8 million (approximately $1016.9 million) during fiscal year 2004, an increase of 13.9% over 2003. H&M offers fashion apparel while maintaining a focus on low prices. The company has more than 1069 stores spread across 21 countries. All H&M stores are owned and solely run by H&M.

Extraits

[...] All H&M stores are owned and solely run by H&M. The company has approximately a hundred designers who work with a team made up of 55 pattern designers, about 100 buyers and a number of budget controllers to create H&M's clothing collections for women, men, children and teenagers. The company offers a range of fashion apparel divided into different concepts. The range covers everything from classics and basics to clothes that reflect international trends. It also includes underwear, sportswear, accessories and cosmetics. [...]

[...] This is the marketing plan. The marketing plan starts by assessing the starting point of the company and it current situation. As it is said in the first part, H&M is leader in the market, present in more than 20 countries and being a reference for the customers all over the world. Afterwards, some analyses are necessary to implement a good strategy and to know where to go for a company.[2] The first thing to do is a SWOT analysis of the company. [...]

[...] We can wonder why we do not find yet stores in Shanghai or in Hong Kong. For the moment they prefer to invest in the American market and to make their establishment there a success. But the Chinese market represents a real opportunity for H&M A firm as huge as H&M has to be on the future biggest market of the world: the Chinese market. We can wonder why we do not find yet stores in Shanghai or in Hong Kong. [...]

[...] Today, as people focus more on the physical, mental and psychological development of the young generation, demand for childrenwear (including primary and secondary school uniforms) that is simple, practical and attractive is strong. - Once China enters the WTO, women wear will be the first to bear the brunt in the clothing market. Since domestically-made womenswear lags far behind world standards in fabrics, accessories, designs and workmanship, action must be taken soon to make new breakthroughs. - Sportswear will continue to be a hit. Driven by growing health consciousness and the fitness wave across the country, sportswear has become an indispensable item in people's wardrobe. Today's sportswear stresses comfort and practicality. [...]

[...] H&M should change a little his strategy to come in this market. The Chinese government wants a strong economy. They are ready to welcome new investments. For example, they made investments in their different harbours. Today six Chinese harbours have more than 150 millions tons of merchandise traffic. Shanghai's harbour is the second biggest in the world after Singapore. In the logistic sector, it could be interesting to use one of this high harbours to send merchandises in all over the world or the rest of Asia. [...]