Term
Good Afternoon, my name is Zaineb.
I am going to talk today about H&M.
I am going to start with the Intro |
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Definition
H&M is a Swedish Company
Funded by Eric Persson in the late 40s
Nowadays its managed by his grandson, whom believes in expansion.
H&M is present in 62 countries with 4000 stores with 132,000 employees.
H&M is the second largest retail company after Inditex.
Profit pre-tax in 2016 was $21,73 Billions
H&M is divided in brand all under the same store space.
H&M collaborates with fashion designers and top models
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VALUES
H&M believes in people, considering every idea or Project
H&M has the capacity to adapt, learn and transform itself in the rawist market
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VISION
H&M aim target is offering fashion to responsible customers Loyal pricing with fast fashion
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PRODUCT LINE
H&M company has a large brand range:....
These brands are designed for everybody...
...and the product range is........ |
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Definition
Next I am going to show you the PESTEL Analyses that I find interesting, lets start with....
Political:Outsources from China, India, Bangladesh.
Custom duties and restrictions
Relocation facilities for production receiving initiatives.
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Economic
•Lack of confidence between customers with recession.
Under pressure social responsibility.
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Definition
Socio-cultural
Company segregates based in location breaking them down into smaller niches depending on preferences and market.
Upgrade logistic capacities -->
stock inventory control =waste reduction
Big info diffusion improvement --> social networks as well as prizing loyalty.
Still present in traditional forms of communication.
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Enviromental
Concerned about climate change --> close loop in clothing
More than 20% garments produced from recycled materials.
Electric efficiently using sustainable resources.
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Legal
H&M is under Swedish legislation.
Other stores under the countries law where located.
H&M has a conducted code for suppliers.
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Strengths
•Artist and designer collaborations
•Cheap and affordable fashionable clothing and garments.
•Well-developed marketing skills, keeping a great reputation between clients and future clients.
•Incredible store layouts and locations.
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Definition
Weakness
•Low quality
•Main Market loose --> Europe.
•Market rivals with the same shop concept and similar final product.
•Dependent of suppliers.
•Lack of control over garment production.
•Cheap manufacturing located in the Far East, which contributes to social issues.
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Opportunities:
•Online market and the globalization help H&M to reach the whole world.
•Emerging markets such as South America, Australia o china.
•Future collaboration with important designers or fashion figures.
•Teen market
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Threats:
•Rising labors costs in China, India, and Bangladesh
•Other brands offering similar garments, ZARA, GAP.
•Supplying can be affected with climate differences in new markets.
•Strong competition on online sales space.
•Inadequate and insufficient supplying service.
•Recession
•No control or regulation over their suppliers system, but they do have an obsolete code. |
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H&M has fierce competition with inditex, mainly Zara that is in first place.
Uniqlo, Gap are other that follow closely behind. |
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Definition
Diversification, H&M adapts itself through its segmentation to be able to reach and expand to its customers needs.
Expansion and growth strategy, each year it opens more store.
Exclusive products online that attract another kind of customers.
Incredible sales and promotion all year round on their web.
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Middle East
Fast growing market and under restrictions.
Adapting to cultural ethnic political and religious environment --> adapted clothes
Unique designs that fit `perfectly to needs of the region.
Franchise purchased Alshaya Group.
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Definition
Marketing Mix
Price
Based on their customers needs.
Outsources production --> lower cost in labor
Control transportation cost, according to the product
The company has a strict conduct cost control plan.
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Promotion
A multi-channel promotion strategy including advertising, internet promotion, sales promotion adapted by H&M always based on customers needs.
Eye catching event promotions --> top models and named designers |
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Definition
Product
Clothing
Adapted clothes
Maternal clothes
Party garments
Sports gears
Big sizes
Lining
Shoes
Accessories
Cosmetics
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Logistics are simplicity reliability and transparency
Basic goods made in Asia and fashionable goods made in Turkey.
Business ideas rely on the success distribution strategy
90% via ocean, rail or road, rarely air because of cost.
Direct distribution from producer to customers --> fastness and economy
Launched online sale in several areas.
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Definition
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