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H&M expanding to Ukraine, Kazakhstan and other Post-Soviet U

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Olga Astakhova

on 15 February 2015

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Transcript of H&M expanding to Ukraine, Kazakhstan and other Post-Soviet U

H&M expanding to Ukraine, Kazakhstan and other Post-Soviet Union Countries
1. Research Problem
To find out why one of the biggest clothes retailers has not entered those markets yet?
2. Hypothesis
3. Research Plan / Procedures

This document contains an economical business report on the subject of the possibility of H&M expanding to the Ukrainian and Kazakh markets. Are those markets a suitable and lucrative market to expand to?

Hennes&Mauritz (H&M) is a clothing company with around 2.200 stores, operating in 40 countries and employing approximately 87.000 dedicated people from different cultures. The start of this success dates back to the year 1947, when the then thirty year old Erling Persson left Sweden for a trip to the United States. On arrival, he was impressed by the American stores selling large amounts of clothing at relatively low prices, a phenomenon that was hardly present in Europe at that time. In that same year, the first store was opened in Sweden. “Hennes” which means “for her” is why this store focused on selling women’s clothing only. Due to Hennes’ success, Persson enlarged the business in 1960 by buying Mauritz Widforss, a store selling solely men’s clothing. After combining the two names, the now well known brand name was created. (How H&M Cooks Up Success, 2010)
Expanding rapidly within the last decades, H&M evolves to be a global player within its industry. Further, with starting and running an online shop in northern Europe it finally set foot in the “Internet age”. H&M’s main markets are Sweden, Germany and the UK, although it is known and established in almost every country in Europe and gains importance in several other countries all over the globe, such as China, the USA, Canada and countries in the middle east.
An expansion to Ukrainian and Kazakh market can offer several new opportunities and can strengthen H&M’s position on the global textile market. Ukraine and Kazakhstan offers a large and very fashion interested target group. This broad target group, although it defines itself mainly through a country-specific type of style, can also widen H&M’s product line and offer new opportunities for the East-European and Asian market.

Established - 1947
Type - Public
Number of employee > 10,000
Revenue - $18.13 billion (2013)
HQ - Stockholm, Sweden

Website - hm.com
Facebook.com/hm - 21,676,479 Likes
Twitter.com/hm - 4,440,256 Followers
instagram.com/hm - 4,579,983 Followers

Vital statistics:
Company Snapshot
H&M Hennes & Mauritz AB (H&M) is a Swedish multinational retail-clothing company, known for its fast-fashion clothing for men, women, teenagers and children.

H&M exists in 53 countries and as of 2013 employed around 116,000 people. The first store was opened on the high street of Västerås, Sweden in 1947. It had 2,325 stores at the end of 2011 and 2,629 stores at the end of August 2012. It is ranked the second largest global clothing retailer, just behind Spain-based Inditex (parent company of ZARA), and leads over third largest global clothing retailer, United States based GAP Inc.

The design team in the company’s Sweden office controls the steps of production, from merchandise planning to establishing specifications, and production is outsourced to approximately 800 factories in Europe and Asia.

In 1946 the company's founder Erling Persson was on a trip to the United States and came up with the business idea of offering fashionable clothing at attractive prices. In 1947 he opened his first shop Västerås, Sweden "Hennes", which exclusively sold women's clothing. "Hennes" is Swedish and means "for her" and/or "hers". In 1968 the hunting apparel retailer Mauritz Widforss was acquired, which led to the inclusion of a menswear collection in the product range and the name change to "Hennes & Mauritz" (H&M). In 1998, the company successfully gained control over the initials "HM" for its Internet domain HM.com.

The brand architecture also consists of sub-brands COS (Collection of Style), Monki, Weekday, Cheap Monday, and & Other Stories.
To conduct this research, we will take help of both primary and secondary information source.
• Primary Source - Past data analysis, Current activities, Activities for 2010-11, Interview, Observation and Survey Questionnaire.
• Secondary Source - Internet, Newspaper.

1. Project Proposal preparation
2. Questionnaire preparation and start gathering data.
3. Gathering Data.
4. Analyzing Data
5. Preparation of the Draft report
6. Preparation of the Final Report.

report on the subject of the possibility of H&M expanding to the Ukrainian and Kazakh markets. Are those markets a suitable and lucrative market to expand to?

Key people:

Chairman - Stefan Persson
President & Chief Executive - Karl-Johan Persson
Full transcript