Company focus: H&M

Résumé du document

Just a small quiz to begin: do you know which fashion house organized its runways in Central Park for the 2005 winter collection? A clue for you: this famous name of the fashion industry had Karl Lagerfeld as designer, and Kate Moss as top model… You are answering Chanel of course, and it could be this famous French fashion house, but it is not… No, the famous name is not part of the high-fashion world, and could even been described as the opposite, in spite of its guest stars. We are talking about H&M, one of the leaders in the clothing industry, which has set up a successful strategy to spread its vision of fashion all around the world. H&M has today become a leader in the fashion industry in Europe, and its foothold in the USA and Canada is evidence that the expansion of the firm is not finished. The message spread by the company “we offer you the latest trends for affordable prices” ensured a rapid growth, and the brand is nowadays known by the majority of customers, from little girls to fashionable mothers.

Extraits

[...] About 60 percent of all production takes place in Asia, while the rest is located mainly in Europe. The company has 22 production offices around the world. The turnover in 2004, including sales tax, reached SEK 62,986 million (USD 9,397 million; CAD 11,177 million). Target definition of the company The target of H&M could be defined as follows: almost everyone. The company is indeed selling clothes for women, men, teenagers and children, and produces cosmetics today too. Nevertheless, the collections are following the latest trends of fashion, and address more efficiently a young public. [...]

[...] Then again, all products were sold in a few hours, and the advertising campaign, however more discrete than Karl Lagerfeld's one, attracted hundreds of people in H&M's stores last 10th November (See appendix 7). APPENDICES Appendix 1 - H&M markets hm.com Appendix 2 - H&M development hm.com Appendix 3 - Focus on the different collections of H&M hm.com Women's wear: L.O.G.G. : updated classics with an emphasis on durability, quality, and function L.O.G.G. Sport : modern, functional sportswear BiB : aimed at the plus-size fashion-conscious woman, it offers both basics and more high fashion items Mama : for the mother-to-be who wants to continue to dress fashionably during her pregnancy Men's wear: L.O.G.G. [...]

[...] Recommendations (these address the above issues in order) 1. H&M should increase quality on some products, in particular, basics, while increasing prices marginally if needed. Contrary to fashionable clothes which do not have to last because they are outdated the next season, customers would like to see the basic items have higher quality H&M has a strong social policy, and is careful about conditions of production. The firm took part in an agreement[9] between China and Swedish retailers Lindex, Kappahl, and Indiska, the four biggest retailers in Sweden), to guarantee good production conditions. [...]

[...] Women in particular are looking for fashionable but inexpensive pairs of shoes to change whenever they want. Focus on Karl Lagerfeld's collection Karl Lagerfeld designing for It's taken the fashion world by surprise for sure. This is high couture down to high street. The Karl Lagerfeld for H&M collection debuted in selected H&M stores in all 20 markets on November 12th 2004. The designer behind Chanel and his eponymous collection, Karl Lagerfeld, makes high fashion available to all at low prices simply because he felt idea was modern. [...]

[...] Each season they hold meetings with the press to communicate H&M's fashions and trends. SWOT Analysis: Key Points (See appendix 5 for an exhaustive chart) H&M is recognized as a successful brand, known everywhere in Europe and in North America. The company has a strong positioning and keeps its promises: you can effectively find fashionable clothes at affordable prices, and follow the latest trends without spending considerable amounts of money. Its advertising policy is highly impactful, and hiring famous top models or setting up partnerships with famous designers like Karl Lagerfeld last year increases the firm's credibility. [...]