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Tarek Agha

on 24 May 2013

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Transcript of H&M

Weakness It is a large global clothing retailer boasting over two thousand stores in more than 40 countries in different corners of the world. The company owns more than 800 factories in Asia and Europe.
The brand’s key to success is its collaboration with worldwide known fashion designers such as Sonia Rykiel, Mattew Williamson, Roberto Cavalli, Jimmy Choo, Stella McCartney and Karl Lagerfeld. Founded in 1947 by Erling Persson From a single women wear store in 1947, to a global company offering fashion for the whole family and their home under the name of H&M, COS, Monki weekend, Cheap Monday, & H&M home. H&M depends completely on outside suppliers to manufacture their products. Outsourcing can be a
risk to H&M’s reputation. H&M outsources to about 700 independent suppliers around the world. The
company has limited control over the factories and this could lead to low quality products which reflects
poorly on the brand. There is also uncertainty in the future supply or product, inefficiency in order fulfillment
and slower response times to market trends. The operation is highly centralized in European areas with great
portion of revenue come from there. This is not a good strategy for leveraging risk. Also, as the distribution
centers are mainly located in the European regions, it becomes difficult to develop online stores in the global
market(MarketLine, 2012). For a lot of women shopping is a great way to improve the mood and get rid of depression or stress. Offers modern, urban, and chic combination of timelessness and distinctive trends, for both men and women. From quality clothing for work and party time to carefully selected accessories.
All with fashion sensibility down to the smallest detail. COS also offers cute and comfortable fashion for children. Is synonymous with personal creativity and expression. Here young women can find clothes accessories and novel store concept that is its own imaginative world. The stores and Monki.com provide innovative collections and an inspiring fashion experiences characterized by playfulness and colorful graphic design. Sells its own brands with independent fashion labels such as Carin Wester, Bless and Bruno Pieters. They also offer urban fashion for women and men always at the best price. Here they combines influences from street fashion and subcultures with a catwalk vibe. Hip men and women come here to find denim, clothing and accessories at a high fashion level and prices accessible to all.
Each season, Cheap Monday holds a catwalk show in Stockholm, Sweden. Is a fashion brand offering women a wide range of shoes, bags, accessories, beauty and ready to wear to create their personal style, or story. The first collection will be launched in stress and online during spring 2013 in selected European countries. SEVEN Strengthen communitiesContribute to the development of the communities where we operate. Use natural resources responsiblyConserve water, soil, air and species. Reduce, reuse, recycleAim for zero waste to landfill Be climate smartBe energy efficient and inspire others to reduce total CO2 emission Be ethicalalways acting with integrity and respect Choose and reward responsible partners. by working with partners who share thier values. provide fashion for conscious customerBy Makeing products with an added sustainability value. P H&M stores should always be located in the best business locations, whether in a big city or a small-town shopping centre. This has been a firm principle of H&M’s since the very first women swear shop opened in 1947, and it is still true today. P P P H&M strategy is All in All, in other words all ways of promoting such as Video ads, prints ads and e-marketing, to get all kinds of customers.
In the age of e-marketing H&M focuses on the social media besides they made a very creative website that allows you to see the whole collection and buy online as well as they invented a very unique thing which is virtual fitting room. What makes H&M special is (Fashion and Quality at the Best Price),for example if you walk into a trendy Soho boutique in NYC, you might see high fashion T-shirt selling for 250$. Go into H&M clothing store, you can see the same style with 25$. is the fact that they always follow the newest trends and have a department for every type of human being: women (fancy, classic, casual), men (chic, trendy, casual), young fashion in a wide range for girls and boys, children’s fashion for every age, a sports department, a department for big sizes, a department for pregnant women, and so on. They offer a huge assortment of various clothes, accessories and cosmetics so every visitor finds something for oneself, even if it’s only a single basic shirt. " 1947 1964 Hennes opens in Stockholm 1952 Founder Erling Persson buys the hunting and fishing equipment store Mauritz Widforss. Sales of men's and children's clothing begin. The name is changed to Hennes & Mauritz. 1968 H&M is listed on the Stockholm Stock Exchange 1974 women's clothing .
The store is c.alled Hennes The first store opens in Vasteras, Sweden, selling It was big step to be international for the firt time so he think that he should attract more customer to his store so he decide to give all the client the ABBA records. The first store outside Sweden opens in Norway. it was his persson's idea and it appeared to be successful because the number of customer grew almost twice Business operations aim to be run in a way that is economically, socially and environmentally sustainable by fulfilled the needs of both present and future generation. offers online shopping in eight countries. Germany is its #1 market, accounting for more than 20% of sales. The firm doesn't own factories but buys its goods from suppliers primarily in Asia and Europe Asia Pacific


Middle East & North Africa.

North & South America. Germany is H&M’s largest market, followed by the US, UK and France. Looking forward, H&M sees great potential for continued expansion in existing as well as new markets. All brands will all continue to grow through more stores but also on digital platforms such as HM.com, mobile apps and social media.
In some markets H&M is collaborating with franchise partners, but franchising is not part of the general expansion strategy. H&M has expanded substantially in recent years. Today almost 2,800 stores are spread across 49 markets. Global expansion 1976:

The first store outside Scandinavia opens in London, UK. 1977:

The Impulse stores are launched. Sales of cosmetics begin. 1980s:

Stores open in Germany and the Netherlands. H&M acquires the mail order company Rowell's. 1990s:

Expansion continues in Europe with the opening of a first store in France in 1998. Adverts in newspapers and magazines are complemented by billboards using famous models. In 1998 e-commerce begins. 2000:

The first US store opens on Fifth Avenue in New York. 2004:

H&M initiates designer collaborations starting with Karl Lagerfeld. Collaborations in subsequent years include those with Stella McCartney, Viktor & Rolf, Madonna, Roberto Cavalli, Comme des Garçons, Matthew Williamson, Jimmy Choo, Sonia Rykiel, Lanvin, Versace, Marni and David Beckham. 2006:

A major expansion of online and catalogue sales begins with the Netherlands as the first market outside of Scandinavia. The first stores in the Middle East open via franchise arrangement. 2000 2007:

The first Asian stores open in Hong Kong and Shanghai. In the same year, the new store concept COS is launched. The expansion of online and catalogue sales continues to include Germany and Austria. 2008:

H&M opens its first store in Tokyo, Japan. Acquisition of fashion firm FaBric Scandinavien AB with Weekday, Monki and Cheap Monday. 2009:
The first H&M stores open in Russia. Beijing also gets its first H&M 2009:

Lebanon becomes a new franchise market. H&M Home is launched. Weekday and Monki open in Germany. 2010:

The first H&M stores open in South Korea 2010:
Turkey.Palastine becomes a new franchise market. E-commerce starts in the UK and the first H&M Home stores open outside Sweden. Monki takes the step into Asia with a store in Hong Kong. 2011:

H&M opens in Romania, Croatia and Singapore as well as via franchise in Morocco and Jordan. COS opens in Sweden, and Monki and Cheap Monday in the UK. An incentive programme for all employees – the H&M Incentive Program – starts. COS and Monki launch e-commerce in 18 countries. 2012:

H&M opened in Bulgaria, Latvia, Malaysia, Mexico and via franchise in Thailand. COS expanded to Hong Kong, Italy, Finland, Poland, Austria and via franchise in Kuwait. Monki expands in China and Weekday opened in the Netherlands. The first H&M store in the southern hemisphere opens in Chile. H&M also opens in Estonia,

Lithuania and Serbia. Indonesia becomes a new franchise market. H&M plans to introduce

online shopping in the US. The & Other Stories brand is launched in ten countries. COS,

Monki, Weekday and Cheap Monday to open in new countries. Weekday starts online shopping.

Global clothing collecting initiative starts in selected stores. 2013 Promotion Strategy H&M has become one of the largest retailers in Europe. It has reached this iconic status by targeting each member of the consumer group by primarily dividing them into convenient groupings as men, women, teenagers, children and future mothers and has exclusive offerings to satisfy each group. Moreover, the company slots its customers into two distinct categories – practical consumers and fashionable and trendy consumers and caters to requirements of each group separately. Re-wear: Clothing that can be worn again is marketed worldwide as second-hand goods.

Reuse: Textiles that are no longer suitable to wear are converted into other products, such as cleaning cloths.

Recycle: Textiles that can’t be reused get a new chance as textile fibres, or are used to manufacture products such as damping and insulating materials for the auto industry.

Energy: When re-wear, reuse and recycle are not options, textiles are used to produce energy. Bring your unwanted clothes to any H&M store. For each bag of clothes you hand in, you will receive a £5 voucher to redeem on your next purchase of £30 or more. If you’ve got something worn, torn or hopelessly out of style – don’t throw it away or let it pile up in the back of your wardrobe. Bring it to us and help reduce the amount of fashion being wasted. Taking responsibility for how H&M business affects people and the environment is essential for H&M's continued growth and profitability.

H&M extends its support to the communities in which their employees and customers live and work. Regularly donating clothing to victims of war and natural disasters, as well as to other people in need, is part of that effort. Don't let fashion go to waste sorts of clothes Headquartered in La Coruna,Spain.
Part of Inditex group.

Corporate strategy = Fast affordable fashion,low volumes per style,changing product lines frequently.

From catlwalk to shop floor in a short time period.

Target- middle class urban women.
Low marketing spend. SWOT Analysis STRENGTHS

- Providing quality fashion at best price through strong procurement and designing strategy

- Wide geographical market presence

- Collaboration with designers WEAKNESSES

Product recall
- Declining consumer confidence - Intense competition THREATS -Business expansion in new and existing markets
- H&M Home initiative
- Establishing a footprint in Japan OPPORTUNITIES however, H&M could possibly beat Zara with their access
to celebrities and more promotion. All for Children is a unique collaboration between H&M and UNICEF. They worked together to protect the rights of some of the poorest children in the world. Today, the reach out to more than 2 million children and the adults around them in two projects in India and Bangladesh. 25% of the sales price of the annual All For Children collection and additional donations from H&M fund these projects with around USD 12.5 million.
It’s about the 3 Ps. People, planet, and profit. All highly interconnected. All equally important. The earth is facing scarcity issues on many fronts. Clean water, energy and cotton, to name a few. So that their vision was to make all their operation run in a way that is economically, socially and environmentally sustainable. Turning this vision into a reality helps them do great business using fewer resources. It also allows contributing better lives for people and communities around the world. All For Children 14798932 having few middlemen

having a broad, in-depth knowledge of design, fashion and textiles

buying the right products from the right markets

being cost-conscious at every stage Keep it simple

Straight forward and open-minded

Constant improvement

Entrepreneurial spirit

Cost conscious

Team work

Belief in people 7 H&M also comes to Spain and, in subsequent years, to a number of European markets. Hong Kong Shanghai Code of Conduct Legal requirements
A ban on child labour
Health and safety
Workers’ rights
Housing conditions
Systems approach
Monitoring and enforcement
Full transcript