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H&M Business Plan

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Veronica Zanchi

on 12 September 2013

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Transcript of H&M Business Plan

Revenue models
Value network
Competitive strategies
H&M Business Model
Value Proposition
Low price
Good selection
Fast fashion
Strong brand
Top designers
Target Market
Fashionable and trendy
Filled of energy and enthusiasm
Careful to the price
Strong personality
All-age and gender
Sensitive to the opinion leader and to the celebrity marketing
Value chain
Sustainable raw materials suppliers
800 independent suppliers
Ø owned factories
4 continents transport providers
2'900 stores
Few intermediaries
Celebrity Marketing
The end
Thank you for watching
Creating a Fashion Success
Cost model
Profits 2012 : 2,54 billions $
Long-term investments = costs increases + no revenues (yet)
Raw materials price trend
Sustainability costs
Promotion, advertising and celebrity marketing
Resources: human capital, material, financial, know-how, organizational, brand popularity, suppliers capability, company reputation.
Business analysis that describes social and technical resources (both internal and external) and negotiation power within and between businesses (towards customers, suppliers and competitors).
Logistic policy
London, UK
Which sources create incomes for the H&M company?
325 new stores H&M
New markets (Estonia, Lithuania, Indonesia, Chile, Serbia)
Debut of e-commerce in the USA
Launch of a new brand "&OtherStories" and 7 stores in Europe (Barcelona, Berlin, Copenhagen, London, Paris, Stockholm, Milan)

150 designer and 100 buyer
2 collections (long-lead items) and several sub-collections (fast fashion) every year
20-30 production offices close to the suppliers to manage relations with the operating center
Importance of an integrated and connected infrastructure (supply chain, logistic, primary stock)
Development and design function are "IT-enabled"
by Veronica Zanchi
Analysis contents : author
Articles from :
Book : A.C. Pellicelli, "Introduzione al marketing strategico", Giappichelli Editore, 2009
Images : Google.com
Full transcript