1 / 23

Done by: Carole Flamion Wee Beng , Seow

Done by: Carole Flamion Wee Beng , Seow. Coverage of Presentation. H&M Story and Overview Fast Fashion Market H&M Main Business Activites H&M Business Model H&M market segments and targets Competitor Analysis SWOT Analysis Challenges faced by H&M H&M Marketing Strategies

rheanna
Download Presentation

Done by: Carole Flamion Wee Beng , Seow

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Done by: Carole Flamion Wee Beng, Seow

  2. Coverage of Presentation • H&M Story and Overview • Fast Fashion Market • H&M Main Business Activites • H&M Business Model • H&M market segments and targets • Competitor Analysis • SWOT Analysis • Challenges faced by H&M • H&M Marketing Strategies • H&M Future Development

  3. H&M Story

  4. H&M in China • First H&M store opens in China, Shanghai in 2007 • Currently, 170 stores in China-wide • 4 COS stores • 5 Monki stores

  5. Fast Fashion • Collections based on the most recent fashion trends presented at Fashion Week • Designed and manafactured quickly & cheaply • ZARA, H&M, Peacocks and Topman leading retailer in fast fashion collections • Deliver designer products to a mass market at a relatively low prices • Category Management • Quick Response Method • Supplychain

  6. FastFashionmarket - Key figures

  7. Fast fashion market in China • Metersbonwe, La Chapelle and online retailer Vancl emerged as local fast fashion contenders • Building strong footholds in smaller, relatively untested third and fourth tier cities • Competitivepricing • Comparatively easy access to suppliers and distribution networks.

  8. Opportunities and potentials • H&M plans to increase presence in lower tier cities by 2015 • Even in the face of an expected economic slowdown, growth of China’s apparel industry is likely to outpace the nation projected GDP • Highest rate of expansion to take place in China • Landlords of shopping centres aggressively pursue leasing deals with international brands such as H&M • Online shopping expansion • Attract next-generation consumers

  9. Keys to launching new brands • Finding new customer segments that have synergy with an existing brand such as COS and Monki • Determining the right positioning in those segments, including product characteristics that are differentiated from the mass market and that target customers will welcome • Assembling an experienced, knowledgeable management team

  10. H&M advantages • Active use of celebrity endorsements • Mass media marketing • Presence in China social media, SinaWeibo and Youku channels • APPs on smartphones • Association with the younger generation consumers • Large and diverse team of designers and management team to ensure fashion, quality and sustainability in its products

  11. H&M Main Business Activities • H&M offer collections that are wide-ranging and varied for women, men, teenagers and children • Offer inspiring fashion with unbeatable value for money • Aim is to always exceed customers' expectations on quality • Ensure the best price by • in-house design • No middlemen • Large purchasing volume • Buying the right products from the right markets • Efficient logistics • Cost-consciousness in all parts of organization

  12. H&M’s business model • Outsource the production process • H&M buy clothes and other items through an abundance of detached suppliers • Its purchasing depends on what sells well and what the market situation looks like. • H&M has established an efficient distribution channel • It makes good use of its supply chain and information channel • A unique business model that permits H&M to have such good sales performance

  13. Finding the Perfect Fit • Women, men, teenagers and children’s markets • Main targets: • 20-30 years old • Urban, middle class with increasing incomes • Fashionable people who wish to keep up with the fashion from the Fashion Week • Taste for Western goods • H&M fashion year is segmented into 2 sections mainly: • Spring/Summer • Fall/Winter • Through its promotional videos on social media like Youku, H&M portrays a young and hip culture to its fashion line

  14. International Competitors • Main competitor: ZARA (Spain). • Upcoming competitors in the industry: • Uniqlo (Japan) • Forever 21 (US) • Topshop (UK)

  15. Domestic Competitors Following international trends • Metersbonwe,sub brand:ME&CITY • URBANEIGHTDAY • VANCL (Online)

  16. Most valuableapparelbrands in China, 2012

  17. SWOT Analysis • STRENGTHS - Providing quality fashion at best price through strong procurement and designing strategy - Wide geographical market presence (3000 stores in 53 cities) - Collaboration with designers • WEAKNESSES - Product recall - Knowledge of the Chinese market • OPPORTUNITIES - Business expansion in new and existing markets - H&M Home initiative - E-commerce markets i.e Online shopping • THREATS - Intense competition - Declining consumer confidence

  18. H&M OBSTACLES • Fashion has a limitedshelf life even more so for fast fashion • Externalfactors in production countries • Labour rights and environmental issues • BalancinglowpricestrategywithFastFashionstrategy • Balance long lead time of outsourcing withagilityfashion business • Threat of substitutes • Bargining Power of buyers

  19. H&M’smarketingstrategies • Collaboration with exclusive collections with top designers such as Karl Lagerfeld, Victor&Rolf, Stella McCartney and Roberto Cavalli, Versace • H&M associate itself with internationally famous celebrities to create more awareness for its brand • GiseleBundchen, face of A/W 2013 collection • In Europe: H&M design award, « Movingfashionforward »

  20. Recommendations • Expandintolowertiercities • Increase social mediapresence in China such as WeChat • Promoteenvironmentallyfriendly production process • Engage local celebrities to beinvolved in H&M advertisements • Create an online shopping portal for the Chinese market

  21. Thank you for your attention!

More Related