H&M marketing analysis

Thèmes abordés

mix marketing, instore and window display visual merchandising, target, consumer, action plan, mapping, silhouettes, clothes, clothing, fashion, garments, distribution, shop, clients, zones, fixtures

Résumé du document

H&M´s founder Erling Persson, began as a buisnessman in Vasteras, Sweden. During a trip to the USA in 1947, Erling became interested in a new kind of clothing store that combined a high turnover of garments with low prices. Upon his return home, he opened the first Hennes retail store in Vasteras on September the 13th, 1947. He called it “Hennes”- the Swedish word for “Hers” because he sold women's clothing exclusively. Hennes expanded steadily during the 1950s and the 1960s. When the company expanded to Stockholm, Sweden in 1968, Persson acquired Mauritz Widforss, a hunting and gun store located in Sergelgatan in Stockholm. His acquisition included the store´s stock of men's clothing. The company changed its name to Hennes & Mauritz. Stefan Persson, Erling Persson´s son, was CEO of H&M from 1982 to 1988, a period of particularly rapid expansion. Since 1998, Stefan Persson has been executive Chairman of the Board. Rolf Eriksen was appointed CEO in 2000.

Extraits

[...] The Stores T he store is H&M most important sales channel. Here, the customers can actually see, touch and try the latest fashion items, receive styling tips and get inspired by the garments. The H&M goal is always to place the stores in the best shopping districts and next to the competitors´ stores. The store can vary in size from 2,000 to 30,000 square feet : the large scale stores feature every target and the small ones are focus on a smaller audience, this explains why more than one H & M stores can sometimes be found on the same street: they offer different shopping experiences and focus on various customer groups. [...]

[...] Being a large company, they are in position to contribute towards improving working conditions and promoting worker's rights in their suppliers factories. Part of their vision to run the business operations in a sustainable way is managing their impacts on environment. Customers are becoming more and more aware of environmental and social issues and question where the products they buy come from and how they are made. The company believes that even if they provide affordable prices, the garments still have to offer good quality. H&M works towards improving the factories conditions and strives to limit the negative impact on environment. [...]

[...] The company also put forward projects on social development in the locations where they do business. They don't accept child labour and their projects are focused on women, children and education. T hanks to its winning marketing and merchandising strategies H&M had expanded substantially in recent years and today the company have around 1,700 stores spread across 33 markets. The company has great potential for continued expansion and growth this year too, for example they already have launched franchise operations in the Middle East, Dubai and Kuwait. [...]

[...] Each table is composed of folded items, we find one or two bust forms or mannequin in the center which suggest silhouettes. W all displays in the store enable to make the offer clearer for the customers. Vertical wall displays are used to manage the huge amount of products (intensive merchandising strategy). Indeed, even if there is a high density of products, the store must remain appealing. Colours make the wall display more dynamic. At the top of the wall display, two or three bust forms and mannequins present complete silhouettes. [...]

[...] He has to train and give daily feedbacks to the staff on the presentation of the merchandise. He is always in contact with the floor manager and he also tracks down potential visual merchandiser. He is part of the management team as there is a close collaboration between the sales office and the management department. He forecasts and works in order to achieve the objectives of the company. He plans and sets up the advertising campaigns inside the store and works actively with a commercial point of view to maximize the sales (Top Priority Products, Hot spots). [...]