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melanie spitzbart

on 14 January 2013

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Transcript of H&M

Facts Since 1947
By Erling Persson, Sweden
2700 stores
94000 employees
129 m $ sales 2011
Every year goal = 15 % increase of stores Keep it simple
Acting openly and directly
Continously improvement
Cost awareness
Working as team
Believing in people and their skills Simple philosophy Introduction stage
conscious collection & home accessoires
Growth stage
cooperation with designers
Maturity stage
H&M as a whole
Decline stage
nothing Product Life Cycle
Germany is H&M’s largest market, followed by the US, France, and the UK.

New H&M markets in autumn 2013:
Estonia, Lithuania, Indonesia and Chile Place Number of stores H&M does not own factories
700 independent suppliers
distribution center for each sales market Production and Logistics large quantities of the same garments directly from suppliers
few middlemen
stores owned by H&M
fast and cost-efficient distribution systems
ships instead of airplanes Reasons for the Low Prices Values of H&M:
fashionable clothes
good quality
affordable prices

H&M does not want to lose customers to the competition, therefore the prices need to stay low Price Elasticity Penetration pricing:
low initial entry price
customers will switch to the new brand, because of the lower price
long term gains are more important than short terms, e.g.: cotton crisis Pricing Strategy Newsletter subscribers receive 20% off one item
Coupon card holders: 25 % discount on the most expensive product Summer Sale
Winter Sale
Online Sales Start one day ahead. Sales and Discounts Advertisement TV spots


Outdoor tools Promotion tool: Above the line Direct Marketing
Seasonal catalogues
Mobile sales campaign

Sales Promotion
Sweepstakes and competitions (Consumer Promotion)
Discounts and fashion shows (Trade Promotion) Promotion tool: Below the line Public Relations
Annual reports
Press conference
H&M magazine
Articles (e.g. „Vogue)
No lobbying
Charitable dontations (UNICEF)

Word-of-mouth marketing
Talk and sharing experiences
Chit-chat in H&M blogs on fashion websites Promotion tool: Below the line: Target markets according to social classes Market Specialization Basic market-preference pattern:
Clustered preferences (different clothes-style)
Various countries
In urban areas Research Founded in Spain in 1975
Same concept as H&M but more expensive
5000 stores 100.000 employees
Production mostly in Spain and Morocco not depending on production prices in Asia Founded in Sweden in 1968
Fashionable designes at affordable prices
2700 stores 94.000 employees
Production mostly in Asia therefore not very crisis-proved H&M vs. Zara Agenda Introduction
Market Segmentation
Comparison H&M and Zara Price Comparision Blazer 39,95€ 99,95€

White Top 4,95€ 19,95€

Blue Jeans 39,95€ 39,95€

Together 84,85€ 159,85€ H&M Zara
Full transcript