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Retail essay illustrated
H&M, Hennes & Mauritz AB
Hennes & Mauritz AB, known by the initials of H&M, is a multinational Swedish company with the segment of the market focused on the retail of clothing; fast
fashion. It is one of the world’s most successful clothes retailer, with a yearly growth of 4.62%, more than 3900 shops worldwide, 132.000 employees in 2015 and
owns 6 autonomous brands which I will describe in more depth further. In the following paragraph, I will introduce you to my chosen brand, starting with an
overview of the product range, company values, key strategies including corporate social responsibility and brand positioning.
Cristina Varela (Aoki)
Introduction to Marketing FT4100
CW2 Retail essay [illustrated retail audit] 2500 words
Deadline: 4th
May 2016
http://www.keyword-suggestions.com/aG0/
Cotton, http://www.fibre2fashion.com/news/textile-news/
Hennes & Mauritz AB, was founded in 1947 in Vasteras, Sweden, by Erling
Persson. The first store was called Hennes (plural of she in Swedish) which
started only with women’s wear, moving in 1952 to Stockholm, where, in 1968
they Bought “Mauritz Widforss”, an hunting and fishing equipment store,
changing the name to “Hennes and Mauritz”. As the business was growing,
consequently, the range of products enlarged; soon men’s and children wear
were introduced. Currently their product range vary between dazzling party,
functional sportswear to basics collection for men, women, kids, teenager,
accessories, shoes, make up, underwear and very fashionable home wear. This
vast variety of products and collections, allows costumers to find something that
suits their style and needs, even the most quirky ones. Hennes & Mauritz AB,
has as target seven commitments: more sustainable materials that are good for
people and for wallet, continuing the use of cotton, better working conditions,
garment collection, animal welfare, business concept, better wages and
environment awareness (water). The company is investing in making the most
of sustainability fashion, as a result, they created a collection named “conscious”,
by all means, the promise is:
“Provide fashion for conscious customers
• Choose and reward responsible partners
• Be ethical
• Be climate smart
• Reduce, reuse, recycle
• Use natural resources responsibly
• Strengthen communities”
(www.hm.com, accessed on 5, April, 2016). With those challenges settled, the
company has made improvements to the lives of thousands cotton farmers
and have became the largest consumers of cotton, these have had a huge
impact on the way the company is perceived by costumers who are looking
for brands with an conscious approach.‘We want to help people express their
personality and feel proud of what they wear” (Karl-Johan Persson, CEO. www.
hm.com, assessed on the 6th April) these visions, are therefore, to lead the
business concept in away that offers quality and good value that is economically,
environmentallyand socially sustainable by looking for new materials and
ways of improving, using less of our planet’s resources and reducing waste. The
collection can be easily identified with its green hang-tag.
Cotton extraction, http://action.sumofus.org/a/hm-cotton/
http://rumbomb.tumblr.com
The brand offers suggestions on the website on how to be environmental aware,
such as: if you wash your clothes at 30 degrees instead of 60 you will save half of
your energy, you can also donate clothes in-store for part recycling and receive
an £5.00 voucher to redeem in your next shop when spending £30.00 or over;
the initiative is called “Garment collecting”, which makes Hennes & Mauritz
AB, the first fashion brand, to launch this new concept; reducing waste, sav-
ing and giving products a new life aiming that no textile will go to waste in the
near future and at least 95% to be recycled. “Don’t let fashion go to waste” is the
campaign slogan, which suggests that is at least three ways you can dispose your
unwanted garments, reusing, turning them to other products such as cleaning
clothes or bricolage; re-wearing, selling or giving to charity and recycling, turn-
ing it into fabrics or to be used as insulation. The brand states that all the money
possible made with this service is to be invested in social service.
The brand strategy is to increase the number of stores by 10% to 15% per year,
continuing to offering quality and sustainability. The same applies to their com-
promised six independent brands, COS, Monki, Weekdays, Cheap Monday, &
Others Stories, respectively:
COS, current, timeless and functional; the concept consists of high end design
and quality for those who aim these sort of lifestyle and aim a contemporary
wardrobe beyond seasons, based in style rather than fashion; available for wom-
en, men and children in 30 countries and online in 19 countries.
Monki, is all about personal style, is modern, playful, creative, colourful and
graphic; this individualistic street-wear is focused mainly for young female
available in 13 markets.
Weekday, modern and trendy influenced by Scandinavian style, offering in store
brands and selected external designers; follow the beliefs of future of fashion
and society mind, available in 5 countries.
Cheap Monday, a mixture between street fashion and catwalk as influence, the
garments possess a high-fashion feel; the most popular range is the trendy den-
im range, available in 5 markets.
& other stories, besides clothes, the brand offers a selection of accessories, shoes
and cosmetics, the priority is quality and design, along with personal expression
of styling is available in 10 countries.
Cos, fall winter 2015 campaign Accessed on http://www.fashiongonerogue.com
Hennes & Mauritz AB, stores are always in the best location possible for
business, with their premises hired instead of owned, which allows to become
flexible to any changes where retail landscape is concern, their store are often
positioned in the most attractive streets and shopping centres, also, part of their
business strategy is online expansion, the brand offers online services in 30 mar-
kets and their 6 independent stores in 32! aiming in continuing growth, offering
customers purchases from their mobile phone, laptop or tablet at “distance of
a click”. The current segment of marketing is 17 to 26, as teenagers with young
girls highlighted.
Franchising is not part of the business strategy, hence all stores are run directly
by Hennes & Mauritz AB, with exception of Middle Eastern, where, they made
an agreement with Kuwaiti company; M.H. Alshaya to open four stores, as
result, three will be in Dubai, two situated in Emirates shopping centre and the
fourth in Ibn Battuta.
Like any other retailer, Hennes & Mauritz AB, faces competition. Among
others, Gap, Uniqlo, Forever 21 and the group inditex, (Stradivarius, Pull&Bear,
Massimo Dutti, Bershka, , Oysho, Zara Home, Uterqüe and Zara) which the
core business is the most parallel to, nevertheless, Zara is the number one
fashion retailer brand in the world leaving our brand the second spot on the
ranking, even so, Hennes & Mauritz AB, is demonstrating being very prominent
which I believe soon will be overtaken the first position.
In this next section, I will do a SWOT analysis of the two brands and specify
why I believe
Hennes & Mauritz AB will be soon overtake the group Zara Inditex as number
one retailer worldwide.
Zara advert, can be found at: http://action.sumofus.org/a/zara
Strengths
H&M Zara
Trend setting and innovative.
Some garments are made from recycled fabrics.
Suits every age and style .
High end designer collaborations.
USP; Conscious approach, number one cotton user and leaders
in the price marketing, with consistently low prices.
Costumers and employee focused.
Stronger than Zara on social media with 13.4m followers and
2226 posts.
Diversity, as models are from all over the world.
Online purchase can be refunded in store
£5.00 voucher to redeem in your next purchase when you spend
£30.00 or more.
Costumer sign up with news and promotion.
Activists with “Fashion against AIDs” campaign and conscious
All sizes (including plus size)
Advertising are modern and up to date, with a cool look, prices
are integrated on adverts, so costumers know what to expect.
Online page where they tell stories of ‘ordinary’ people.
Shops looks often tidy
Constantly in store promotions or vouchers including student
discount.
Great costumer services
Celebrities often voluntary uses their conscious clothes as state-
ment of affordable taste and status which brakes the scepticism
that celebrities have to use expensive clothes and show wealth.
Being a Swedish brand the Scandinavian economy affects the
company.
Combines status, luxury and affordability
Costumers are allowed to pay instalments on online purchases.
Changed the way how people perceived and consume fashion.
Modern, trendy, sophisticated and European
Factories in Europe
Save on adverts
Strong windows design
Appeal to all age
Independent brands such as Massimo Dutti, Berskha, Pull&Bear
and Stradivarius are very successful in Europe
Good quality.
The online app is very organised and simple to use
Owns it’s supplier chain, which gives advantage to the competitors.
Quick response, as garments come “straight” from catwalk
up to two weeks!
VS
Weaknesses
H&M Zara
The online website does not promote the ‘trend’ collection which
is a more high end collection with fine products and design.
Does not have a collect in store when purchase online so cos-
tumers will have to pay the £3.95 fee when buying online for
home delivery except some promotions.
When there is a designer collaboration, the stock runs out
within hours and often sold on online platforms for extremely
expensive prices, therefore a better system should be in place.
Some of the collections are very limited.
Lately seams to constantly re merchandising the store lay out
which can be confusing for a regular costumer.
Not all the stores possess the same display.
Follows the government stipulated £5 for bag use which can
cause a negative reaction from some costumers.
Not very engaging on social media with only 10.4m followers on
Instagram and 975 posts.
Shows lack of interest for environment and well-being
Does not suits all tastes as it is very classic.
Not affordable with prices hard to predict as they seam to change
from product to product in an pretty drastically way
Most products are sold immediately turning it to very exclusive
Most of the staff does not speaks a clear English or don’t speak at
all. Staff are often not very sympathetic or friendly offering Bad
costumer services, claiming being explored by the company.
Costumer does not seams to be on heart of things
Does not do collaborations.
When loosing valid receipt is not possible to return or exchange.
Trend followers, has a reputation of copy cat.
As a Spanish brand the brand can be influenced by the country
economic growth, which is in recession at the moment.
Does not posses an oversize collection and sizes are very small.
No student discount or other type.
Opportunities
H&M Zara
There is a gap in the market where fabric recycling is concern,
therefore, continuing to invest on ways to improve it, as being
the only fashion retailer with a recycle system gives advantage
from the competitors.
Invest in Asian as the biggest consumers are proven to be in a
near future in Asia also in the BRIC counties.
The stores in London seem to be trendier than any other coun-
try, taken as example Portugal where I’m from; I would not shop
in H&M as often or at all. Whereas in London is my favourite
brand.
Adapting their clothes to other markets is a great strategy, al-
though as to think on globalisation and main stream, as celebri-
ties are often the trend setters and what is happening in influen-
tial cities such as London and New York.
Invest in students as they are their main customers by increasing
the number of students’ discounts.
Establish an in-store click and collect system, allowing custom-
ers to collect their purchase without having to pay the home
delivery charge.
Create a costumer fidelity card.
Continuing to:
provide costumer services online and in store,
engage on social media,
the collaborations to keep costumers motivated and to
gain a larger audience,
involve in charity.
Invest in adverts
Be more proactive and dynamic on social media
Improve costumer services
Create an environmental approach
Focused more on costumers rather than the business
Have conscious prices
Continuing to invest in China as soon it will overcame US as the
number one world economy and the most e-comerce costumers.
Threats
H&M Zara
Competitors are increasing, new companies are starting to be
successful, Zara still the leader and gap and Forever 21 getting
close.
Political factors in Europe are tense at the moment which
can cause a drop in sells in some places or affect their stores on
middle east.
Environment alternations, with global heating we running of
some resources which contributes for an price increasing.
The company as a reputation of labour exploration, with child
workers in countries such Bangladesh, which can cause serious
damages to the brand. Be transparent about their business.
Although they have great potential, the independent brands
are not well know in the biggest capitals, promote it with dis-
count vouchers to be use on those stores.
Be aware of their competitors and what they are doing and
their USP, market can move quickly and changes may affect
consumers behaviour.
The can loose his identity due the amount of designers collab-
oration.
H&M is getting exposition with the designer collaborations and
the conscious project.
With global economy growth being nil, people will look for
more affordable brands such as H&M or Primark, therefore, qual-
ity would not be the first priority as people are seeking life experi-
ences rather than material, as well as trends changes rapidity.
Political and environmental situation in Europe can have huge
impact in the brand as most of their factories are in Europe.
Zara owns their fabrics and some are held in Europe, conse-
quently the wages have to be according to minimum living wages
of that country which may affect company prices and profit.
Quality is not as good as it used to be.
Reputation of being copy cat (catwalk) inclusive being persecut-
ed before for that reason.
The company closed their 2015 yearly financial report successfully, with
SEK 210billion corresponding to £178 billion, an increase of 19% on sales. The
group opened 472 stores and closed 59, 156 were franchises, with a total of
3,924 stores as of 30 November 2015 in 61 markets with new stores opening in
India, New Delhi and in South Africa, Cape Town and expanding the already
existing market in New Zealand, Cyprus and Puerto Rico and E-commerce ex-
panding to 9 existing markets. COS was their more profitable brand, with total
of 153 worldwide stores, being therefore, their most profitable brand. Hennes
and Mauritz Are aiming to open 425 new stores for the 2015/2016 financial
year. With gross profit increased by 16% to SEK 103,167 m (89,052), 75m will
go towards the Hennes & Mauritz Incentive Program (HIP), which is for all
employees (exceptions may apply).
SEK m
Net sales
Gross profit
gross margin, %
Operating profit
operating margin, %
Net financial items
Profit after financial items
Tax
Profit for the period
Earnings per share, SE
Full year 2015
180,861
103,167
57.0
26.942
14.09
300
27.242
-6.344
20.898
12.63
Sales in top five
markets, full-year
2015, SEK M (inc. Vat) New stores (net)
Germany 36,943 9
USA 25,135 5
United Kingdom 16,001 11
China 10,559 83
Whereof franchise 4.494 26
Curiously on their mother country the company is not looking to open more stores
Image can be found at : http://ww2.glance.net/solutions/glance-for-finance/
Globalization
Globalization
Hennes & Mauritz AB, plans to open 240 stores in between China and the USA
alone, expanding aggressively across Asia where the clothes expenses are rising
11% yearly. China, with a population of 1.4billion and the second world largest
economy, soon to overtake the US as the world’s biggest retail market.“The
growth of the internet and social media have generated global fashion trends
and this has made it far easier for international fashion brands to expand.
Where once fashion tended to be local, this is no longer the case,”( http://www.
warc.com . Accessed on 28th March 2016) predictably, Chinese consumers
will double their annual clothing expenditures to more than double in 2018
approximately £212 billion, Hennes and Mauritz, already have 299 stores in
China, Karl-Johan Persson, chief executive, told the Wall Street Journal;"We
have a positive long-term view on China; our position there is strong, as is our
profitability," the slight slowdown does not seams to stop the retailer, as they
plan to target the country's growing upper-middle class with the opening of its
premium brand, Cos.
Opening of the 3000 H&M store in Cheng Du, China, www.news.com.
Political
Its a Plc, public limited
company,
legislations and regula-
tions,
political stability
taxes
government restrictions
for foreign business.
Environment
Is known as the most
conscious retailer with
their environmen-
tal awareness about
sustainability and eco
friendly production,
transportation and the
use of bio fabrics, also
number one retailer in
the use of 100% cotton
climates change, the
company as to adopt
different approach and
adjust the collection to
the country.
demographic changes
Social
Follows newest trends
and western look,
popular between stu-
dents with fashion
awareness who seek
quality combining with
good prices,
involved in Charity with
found for Aids
CRS conscious project.
Technological
The company, as ma-
jority of retailers is
investing in technology,
therefore improving the
app and website to be
more user friendly, how-
ever it still needs some
organisation in terms of
collections as it can be
a mess to find a specific
collection. QR code is
integrated, which help
customers whenever an
item is sold out in store
to scan, finding all the
information online and
possible purchasing it.
Some stores possess a
touch screen where you
can access online.
Find innovative solu-
tions that turn the
website more interactive
however the brand is
active in social media.
Economy
Being a Swedish com-
pany the company is
affected by the country
economical growth and
the power of his curren-
cy, the company is very
keen in providing fair
wages, with 132.000
employees all over the
world (markets). The
Brand do not possess
hold their own fabrics,
therefore, living wages
costs may vary depend-
ing of the country as
well as transportation
costs. The world eco-
nomic growth is in re-
cession which is affect-
ing interest rates.
Currency
Legal
Employment law
regulations and stand-
ards
tax policy
trade restrictions in
different countries
Micro environment
Costumers
As mentioned previously, costumers are on the core of the business
Employees
Staff are motivated, engaged to progress within the company.
Hennes & Mauritz AB Incentive Program (HIP), which is for all employees.
Suppliers
There are about 2.700 manufacturing facilities all over the world that are also
involved in the design and development. Hennes and Mauritz AB is aware of
the selection of the countries that are produced in, about 800 suppliers which
have again sub-suppliers. Provides training to the suppliers to take ownership on
their own sustainability work.
all supplies must sign an “sustainability commitment “ as mentioned previously
Second tier suppliers
Hennes and Mauritz AB, does not works direct with them, therefore does not
have direct influence, however they are working in ways to improve the value of
their chains on their
Shareholder
The company has a supervisory board, chairman of the board is Stefan Persson
who owns about 186 milion shares of the company.
Supply chain
Is consisted by the buyers who work allong with a the designers, merchandiser
team and patter makers on their headquarters at Stockholm to create, plan and
buy future collections; Merchandisers, they are based in 15 of the productions
office and work as a bridge between buyers and suppliers.
Auditors
known as the sustainability team, around 80 people who monitors suppliers
work practice following an full audit program, started in February 2016, all sup-
pliers must sign the “sustainability commitment” a code of conduct
H&M magazine, can be found at: http://www.nevsmodels.co.uk/news/hm-magazine
H&M Customer Profile
Aoki
•	 Age group 26 to 34
•	 Passionate about life.
•	 Prefers happiness/Experience
rather than money/material
•	 Aspires to became a buyer in
H&M
•	 Shops several times a week
•	 Shops mainly at H&M Trend,
which is closer to designer
clothes.
•	 Enjoy social events and net-
working
•	 Enjoy helping others
•	 Enjoys do good things in life,
However is aware of the costs
•	 Ambitious and motivated
•	 Aspires to reach a profession-
al Status.
•	 Work as a part time manager
in retail .
•	 Student rep/ ambassador
•	 Believes Scandina-
vian is the perfect
Nation to build a
future and start a
career.
•	 Fashion journalist.
•	 Traveller
The brand is known by their enormous collaboration with high end designers:
	 •	 2004: Karl Lagerfeld
	 •	 2005: Stella McCartney, Elio Fiorucci, Solange Azagury-Partridge
	 •	 2006: Viktor & Rolf
	 •	 2007: Roberto Cavalli
	 •	 2008: Rei Kawakubo and Comme des Garçons
	 •	 2009: Matthew Williamson, Jimmy Choo, Sonia Rykiel
	 •	 2010: Sonia Rykiel, Lanvin
	 •	 2011: Versace
	 •	 2012: Versace, Marni, Maison Martin Margiela
	 •	 2013: Isabel Marant
	 •	 2014: Alexander Wang
• 2016: Balmain
Style icon collaborations
	 •	 2006: Madonna
	 •	 2007: Madonna, Kylie Minogue
• 2012: Anna Dello Russo
•	 2012: David Beckham
	 •	 2013: Beyoncé
H&M Design Award Winners
	 •	 2012: Stine Riis
	 •	 2013: Minju Kim
	 •	 2014: Eddy Anemian
A selection of other collaborations
	 •	 2008: Fashion Against Aids
	 •	 2008: Marimekko
	 •	 2009: Fashion Against Aids
	 •	 2009: Jesper Waldenstam, Liselotte Watkins (H&M Home)
	 •	 2010: Black Book
	 •	 2010: Julie Verhoeven (H&M Home)
	 •	 2010: Lovisa Burfit (H&M Home)
	 •	 2011: Elin Kling
	 •	 2011: Fashion Against Aids
	 •	 2011: Swedish Hasbeens
	 •	 2011: Knotted Gun, Non-Violence organisation
	 •	 2011: Trish Summerville, The Stockholm collection: The Girl
• 2015: Coachella
With the Dragon Tattoo
	 •	 2012: Fashion Against Aids
	 •	 2013: H&M for Brick Lane Bikes H&M most successful collaboration to date, can be found at: https://statsinstilettos.com/2015/10/22/balmain-
Conclusion
For all the above mentioned reasons, I believe Hennes and Mauritz AB is
therefore the multi-channel retailer to watch for. As a result of being an Scan-
dinavian brand, the retailer offers freshness and a clean look to the industry,
growing massively and built on a strong reputation
around their customers and social media, continuing to impress with their
collaborations,
environmental consciousness, and welfare; bringing integrity to the fast fash-
ion world. The fact that in my point of view, will contribute significantly, to
overtake their biggest competitor Zara, as one seems to lack in innovation and
slightly repetitive, failing to fulfil this new generation of fast consumers who
rather pay less for their garments and have more options in their wardrobe.
Being one of Hennes and Mauritzs AB, biggest customer and aspiring employ-
ee, I extremely recommend this fun, innovative and futuristic brand.
29.99
Jumper
Shop at HM.com
H&M advert created by me for Creative Marketing.
Bibliography
Muran, Lisa. “Profile of H&M: A Pioneer of Fast Fashion.” Textile Outlook
International (July 2007): 11-36. Textile Technology Index. EBSCO. Mary Couts
Burnett Library, Fort Worth, Texas.
Sheridan, M., Moore, C., Nobbs, K. (2005) “Fast Fashion Requires Fast Mar-
keting: the role of category management in Fast Fashion Positioning”, Journal of
Fashion Marketing and Management, vol. 10, No. 3, pp. 301-315.
Angus S. (2010), "Oxford dictionary of English", 3rd edn. p.727, Oxford
university press.
Business of fashion (2016) Uk. Available at http:// www.businessoffashion.
com (accessed 28 March, 2016)
Bussiness insider (2015) UK. Available at http://www.businessinsider.com
(Accessed: 28 March, 2016)
CORE (2009) UK. Available at https://core.ac.uk/ (Accessed: 26 April, 2016)
Dafont (2015) US.Available at : http://www.dafont.com (Accessed: 28 March,
2016)
Fast fashion trend. Available at http://fastfashiontrend.wordpress.com (Ac-
cessed: 28 March, 2016)
International franchising (2016) Available at http://.internationalfranchisedi-
rectory.net/
H&M (2016) UK. Available at http://www.hm.com/abouthm(Accessed: 28
March, 2016)
WARC (2016) UK. Available at http:// http://www.warc.com/(Accessed: 24
April, 2016)
WGSN (2016)UK. Available at https://www.wgsn.com/blogs/hm-(Accessed:
24 April, 2016)
Wall Street Journal http://www.wsj.com (Accessed: 26 April, 2016)
Write pass (2015)Uk. Available at http://writepass.com/journal/2015/
Zara (2016)Uk.Available at https://www.inditex.com/brands Sources:
Appendix,
Regular visits to H&M stores in different locations and countries, questioning
employees, exploring the layouts and environment.
Notes collected through out the year at the module.
Please check the link bellow for the video I have done for a possi-
ble idea of H&M advertising.
Can be found at http://akavenue.com/grand-re-opening-of-hm-in-indy/
https://youtu.be/Mqd6XtYyclM
500 words learning Journal
It has been an amazing year, more that I ever
wished or would expect. Being selected as
student representative, student ambassador,
writer for the UEL magazine and winning
the very competitive scholarship going glob-
al.
Having a background in marketing, Intro-
duction To Marketing is therefore the mod-
ule of my preference. On the next paragraph,
I will justify my statement.
Although this module is mainly theory, I
believe it will be relevant for my career as
nowadays marketing is fundamental in any
company.
What made this module exciting were the
enormous opportunities within the industry,
for instance, when we went to Savile Row,
interviewing the logistics, I found it extreme-
ly interesting. The shop assistants were very
helpful and keen to help! Some of them gave
me samples while others allowed me to see
where the bespoke suits were made, during
their working hours so I could experience all
the process, it build my confidence and moti-
vation to learn more.
Another good example, was the time we went to Westfield, White city, it also boast my confidence on areas I was unfamiliar with, such as Journal-
ism (until then) I gathered as much information as I could and also invited friends to participate. Last but not least the one I enjoyed the most was
when we went to Agnes B pop up event (picture above) and I interview the designer, in consequence, I created a network directly with the industry
and felt proud of representing my University.
Working as a group is already a challenge, however in this module, we had the opportunity of choosing who we would like to work with which
contributed massively to have great marks as we coordinated perfectly.
For all the above reason, I believe it is a great module to have along with Creative Marketing which I'm looking forward to return next year!

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Introduction to marketing H&M essay print

  • 1. Image can be found at: http://www.yarisha.com/lifestyle/shopping/welcome-hm-to-sa/
  • 2. Retail essay illustrated H&M, Hennes & Mauritz AB Hennes & Mauritz AB, known by the initials of H&M, is a multinational Swedish company with the segment of the market focused on the retail of clothing; fast fashion. It is one of the world’s most successful clothes retailer, with a yearly growth of 4.62%, more than 3900 shops worldwide, 132.000 employees in 2015 and owns 6 autonomous brands which I will describe in more depth further. In the following paragraph, I will introduce you to my chosen brand, starting with an overview of the product range, company values, key strategies including corporate social responsibility and brand positioning. Cristina Varela (Aoki) Introduction to Marketing FT4100 CW2 Retail essay [illustrated retail audit] 2500 words Deadline: 4th May 2016 http://www.keyword-suggestions.com/aG0/
  • 3. Cotton, http://www.fibre2fashion.com/news/textile-news/ Hennes & Mauritz AB, was founded in 1947 in Vasteras, Sweden, by Erling Persson. The first store was called Hennes (plural of she in Swedish) which started only with women’s wear, moving in 1952 to Stockholm, where, in 1968 they Bought “Mauritz Widforss”, an hunting and fishing equipment store, changing the name to “Hennes and Mauritz”. As the business was growing, consequently, the range of products enlarged; soon men’s and children wear were introduced. Currently their product range vary between dazzling party, functional sportswear to basics collection for men, women, kids, teenager, accessories, shoes, make up, underwear and very fashionable home wear. This vast variety of products and collections, allows costumers to find something that suits their style and needs, even the most quirky ones. Hennes & Mauritz AB, has as target seven commitments: more sustainable materials that are good for people and for wallet, continuing the use of cotton, better working conditions, garment collection, animal welfare, business concept, better wages and environment awareness (water). The company is investing in making the most of sustainability fashion, as a result, they created a collection named “conscious”, by all means, the promise is: “Provide fashion for conscious customers • Choose and reward responsible partners • Be ethical • Be climate smart • Reduce, reuse, recycle • Use natural resources responsibly • Strengthen communities” (www.hm.com, accessed on 5, April, 2016). With those challenges settled, the company has made improvements to the lives of thousands cotton farmers and have became the largest consumers of cotton, these have had a huge impact on the way the company is perceived by costumers who are looking for brands with an conscious approach.‘We want to help people express their personality and feel proud of what they wear” (Karl-Johan Persson, CEO. www. hm.com, assessed on the 6th April) these visions, are therefore, to lead the business concept in away that offers quality and good value that is economically, environmentallyand socially sustainable by looking for new materials and ways of improving, using less of our planet’s resources and reducing waste. The collection can be easily identified with its green hang-tag. Cotton extraction, http://action.sumofus.org/a/hm-cotton/ http://rumbomb.tumblr.com
  • 4. The brand offers suggestions on the website on how to be environmental aware, such as: if you wash your clothes at 30 degrees instead of 60 you will save half of your energy, you can also donate clothes in-store for part recycling and receive an £5.00 voucher to redeem in your next shop when spending £30.00 or over; the initiative is called “Garment collecting”, which makes Hennes & Mauritz AB, the first fashion brand, to launch this new concept; reducing waste, sav- ing and giving products a new life aiming that no textile will go to waste in the near future and at least 95% to be recycled. “Don’t let fashion go to waste” is the campaign slogan, which suggests that is at least three ways you can dispose your unwanted garments, reusing, turning them to other products such as cleaning clothes or bricolage; re-wearing, selling or giving to charity and recycling, turn- ing it into fabrics or to be used as insulation. The brand states that all the money possible made with this service is to be invested in social service. The brand strategy is to increase the number of stores by 10% to 15% per year, continuing to offering quality and sustainability. The same applies to their com- promised six independent brands, COS, Monki, Weekdays, Cheap Monday, & Others Stories, respectively: COS, current, timeless and functional; the concept consists of high end design and quality for those who aim these sort of lifestyle and aim a contemporary wardrobe beyond seasons, based in style rather than fashion; available for wom- en, men and children in 30 countries and online in 19 countries. Monki, is all about personal style, is modern, playful, creative, colourful and graphic; this individualistic street-wear is focused mainly for young female available in 13 markets. Weekday, modern and trendy influenced by Scandinavian style, offering in store brands and selected external designers; follow the beliefs of future of fashion and society mind, available in 5 countries. Cheap Monday, a mixture between street fashion and catwalk as influence, the garments possess a high-fashion feel; the most popular range is the trendy den- im range, available in 5 markets. & other stories, besides clothes, the brand offers a selection of accessories, shoes and cosmetics, the priority is quality and design, along with personal expression of styling is available in 10 countries. Cos, fall winter 2015 campaign Accessed on http://www.fashiongonerogue.com
  • 5. Hennes & Mauritz AB, stores are always in the best location possible for business, with their premises hired instead of owned, which allows to become flexible to any changes where retail landscape is concern, their store are often positioned in the most attractive streets and shopping centres, also, part of their business strategy is online expansion, the brand offers online services in 30 mar- kets and their 6 independent stores in 32! aiming in continuing growth, offering customers purchases from their mobile phone, laptop or tablet at “distance of a click”. The current segment of marketing is 17 to 26, as teenagers with young girls highlighted. Franchising is not part of the business strategy, hence all stores are run directly by Hennes & Mauritz AB, with exception of Middle Eastern, where, they made an agreement with Kuwaiti company; M.H. Alshaya to open four stores, as result, three will be in Dubai, two situated in Emirates shopping centre and the fourth in Ibn Battuta. Like any other retailer, Hennes & Mauritz AB, faces competition. Among others, Gap, Uniqlo, Forever 21 and the group inditex, (Stradivarius, Pull&Bear, Massimo Dutti, Bershka, , Oysho, Zara Home, Uterqüe and Zara) which the core business is the most parallel to, nevertheless, Zara is the number one fashion retailer brand in the world leaving our brand the second spot on the ranking, even so, Hennes & Mauritz AB, is demonstrating being very prominent which I believe soon will be overtaken the first position. In this next section, I will do a SWOT analysis of the two brands and specify why I believe Hennes & Mauritz AB will be soon overtake the group Zara Inditex as number one retailer worldwide. Zara advert, can be found at: http://action.sumofus.org/a/zara
  • 6. Strengths H&M Zara Trend setting and innovative. Some garments are made from recycled fabrics. Suits every age and style . High end designer collaborations. USP; Conscious approach, number one cotton user and leaders in the price marketing, with consistently low prices. Costumers and employee focused. Stronger than Zara on social media with 13.4m followers and 2226 posts. Diversity, as models are from all over the world. Online purchase can be refunded in store £5.00 voucher to redeem in your next purchase when you spend £30.00 or more. Costumer sign up with news and promotion. Activists with “Fashion against AIDs” campaign and conscious All sizes (including plus size) Advertising are modern and up to date, with a cool look, prices are integrated on adverts, so costumers know what to expect. Online page where they tell stories of ‘ordinary’ people. Shops looks often tidy Constantly in store promotions or vouchers including student discount. Great costumer services Celebrities often voluntary uses their conscious clothes as state- ment of affordable taste and status which brakes the scepticism that celebrities have to use expensive clothes and show wealth. Being a Swedish brand the Scandinavian economy affects the company. Combines status, luxury and affordability Costumers are allowed to pay instalments on online purchases. Changed the way how people perceived and consume fashion. Modern, trendy, sophisticated and European Factories in Europe Save on adverts Strong windows design Appeal to all age Independent brands such as Massimo Dutti, Berskha, Pull&Bear and Stradivarius are very successful in Europe Good quality. The online app is very organised and simple to use Owns it’s supplier chain, which gives advantage to the competitors. Quick response, as garments come “straight” from catwalk up to two weeks! VS
  • 7. Weaknesses H&M Zara The online website does not promote the ‘trend’ collection which is a more high end collection with fine products and design. Does not have a collect in store when purchase online so cos- tumers will have to pay the £3.95 fee when buying online for home delivery except some promotions. When there is a designer collaboration, the stock runs out within hours and often sold on online platforms for extremely expensive prices, therefore a better system should be in place. Some of the collections are very limited. Lately seams to constantly re merchandising the store lay out which can be confusing for a regular costumer. Not all the stores possess the same display. Follows the government stipulated £5 for bag use which can cause a negative reaction from some costumers. Not very engaging on social media with only 10.4m followers on Instagram and 975 posts. Shows lack of interest for environment and well-being Does not suits all tastes as it is very classic. Not affordable with prices hard to predict as they seam to change from product to product in an pretty drastically way Most products are sold immediately turning it to very exclusive Most of the staff does not speaks a clear English or don’t speak at all. Staff are often not very sympathetic or friendly offering Bad costumer services, claiming being explored by the company. Costumer does not seams to be on heart of things Does not do collaborations. When loosing valid receipt is not possible to return or exchange. Trend followers, has a reputation of copy cat. As a Spanish brand the brand can be influenced by the country economic growth, which is in recession at the moment. Does not posses an oversize collection and sizes are very small. No student discount or other type.
  • 8. Opportunities H&M Zara There is a gap in the market where fabric recycling is concern, therefore, continuing to invest on ways to improve it, as being the only fashion retailer with a recycle system gives advantage from the competitors. Invest in Asian as the biggest consumers are proven to be in a near future in Asia also in the BRIC counties. The stores in London seem to be trendier than any other coun- try, taken as example Portugal where I’m from; I would not shop in H&M as often or at all. Whereas in London is my favourite brand. Adapting their clothes to other markets is a great strategy, al- though as to think on globalisation and main stream, as celebri- ties are often the trend setters and what is happening in influen- tial cities such as London and New York. Invest in students as they are their main customers by increasing the number of students’ discounts. Establish an in-store click and collect system, allowing custom- ers to collect their purchase without having to pay the home delivery charge. Create a costumer fidelity card. Continuing to: provide costumer services online and in store, engage on social media, the collaborations to keep costumers motivated and to gain a larger audience, involve in charity. Invest in adverts Be more proactive and dynamic on social media Improve costumer services Create an environmental approach Focused more on costumers rather than the business Have conscious prices Continuing to invest in China as soon it will overcame US as the number one world economy and the most e-comerce costumers.
  • 9. Threats H&M Zara Competitors are increasing, new companies are starting to be successful, Zara still the leader and gap and Forever 21 getting close. Political factors in Europe are tense at the moment which can cause a drop in sells in some places or affect their stores on middle east. Environment alternations, with global heating we running of some resources which contributes for an price increasing. The company as a reputation of labour exploration, with child workers in countries such Bangladesh, which can cause serious damages to the brand. Be transparent about their business. Although they have great potential, the independent brands are not well know in the biggest capitals, promote it with dis- count vouchers to be use on those stores. Be aware of their competitors and what they are doing and their USP, market can move quickly and changes may affect consumers behaviour. The can loose his identity due the amount of designers collab- oration. H&M is getting exposition with the designer collaborations and the conscious project. With global economy growth being nil, people will look for more affordable brands such as H&M or Primark, therefore, qual- ity would not be the first priority as people are seeking life experi- ences rather than material, as well as trends changes rapidity. Political and environmental situation in Europe can have huge impact in the brand as most of their factories are in Europe. Zara owns their fabrics and some are held in Europe, conse- quently the wages have to be according to minimum living wages of that country which may affect company prices and profit. Quality is not as good as it used to be. Reputation of being copy cat (catwalk) inclusive being persecut- ed before for that reason.
  • 10. The company closed their 2015 yearly financial report successfully, with SEK 210billion corresponding to £178 billion, an increase of 19% on sales. The group opened 472 stores and closed 59, 156 were franchises, with a total of 3,924 stores as of 30 November 2015 in 61 markets with new stores opening in India, New Delhi and in South Africa, Cape Town and expanding the already existing market in New Zealand, Cyprus and Puerto Rico and E-commerce ex- panding to 9 existing markets. COS was their more profitable brand, with total of 153 worldwide stores, being therefore, their most profitable brand. Hennes and Mauritz Are aiming to open 425 new stores for the 2015/2016 financial year. With gross profit increased by 16% to SEK 103,167 m (89,052), 75m will go towards the Hennes & Mauritz Incentive Program (HIP), which is for all employees (exceptions may apply). SEK m Net sales Gross profit gross margin, % Operating profit operating margin, % Net financial items Profit after financial items Tax Profit for the period Earnings per share, SE Full year 2015 180,861 103,167 57.0 26.942 14.09 300 27.242 -6.344 20.898 12.63 Sales in top five markets, full-year 2015, SEK M (inc. Vat) New stores (net) Germany 36,943 9 USA 25,135 5 United Kingdom 16,001 11 China 10,559 83 Whereof franchise 4.494 26 Curiously on their mother country the company is not looking to open more stores Image can be found at : http://ww2.glance.net/solutions/glance-for-finance/
  • 11. Globalization Globalization Hennes & Mauritz AB, plans to open 240 stores in between China and the USA alone, expanding aggressively across Asia where the clothes expenses are rising 11% yearly. China, with a population of 1.4billion and the second world largest economy, soon to overtake the US as the world’s biggest retail market.“The growth of the internet and social media have generated global fashion trends and this has made it far easier for international fashion brands to expand. Where once fashion tended to be local, this is no longer the case,”( http://www. warc.com . Accessed on 28th March 2016) predictably, Chinese consumers will double their annual clothing expenditures to more than double in 2018 approximately £212 billion, Hennes and Mauritz, already have 299 stores in China, Karl-Johan Persson, chief executive, told the Wall Street Journal;"We have a positive long-term view on China; our position there is strong, as is our profitability," the slight slowdown does not seams to stop the retailer, as they plan to target the country's growing upper-middle class with the opening of its premium brand, Cos. Opening of the 3000 H&M store in Cheng Du, China, www.news.com.
  • 12. Political Its a Plc, public limited company, legislations and regula- tions, political stability taxes government restrictions for foreign business. Environment Is known as the most conscious retailer with their environmen- tal awareness about sustainability and eco friendly production, transportation and the use of bio fabrics, also number one retailer in the use of 100% cotton climates change, the company as to adopt different approach and adjust the collection to the country. demographic changes Social Follows newest trends and western look, popular between stu- dents with fashion awareness who seek quality combining with good prices, involved in Charity with found for Aids CRS conscious project. Technological The company, as ma- jority of retailers is investing in technology, therefore improving the app and website to be more user friendly, how- ever it still needs some organisation in terms of collections as it can be a mess to find a specific collection. QR code is integrated, which help customers whenever an item is sold out in store to scan, finding all the information online and possible purchasing it. Some stores possess a touch screen where you can access online. Find innovative solu- tions that turn the website more interactive however the brand is active in social media. Economy Being a Swedish com- pany the company is affected by the country economical growth and the power of his curren- cy, the company is very keen in providing fair wages, with 132.000 employees all over the world (markets). The Brand do not possess hold their own fabrics, therefore, living wages costs may vary depend- ing of the country as well as transportation costs. The world eco- nomic growth is in re- cession which is affect- ing interest rates. Currency Legal Employment law regulations and stand- ards tax policy trade restrictions in different countries
  • 13. Micro environment Costumers As mentioned previously, costumers are on the core of the business Employees Staff are motivated, engaged to progress within the company. Hennes & Mauritz AB Incentive Program (HIP), which is for all employees. Suppliers There are about 2.700 manufacturing facilities all over the world that are also involved in the design and development. Hennes and Mauritz AB is aware of the selection of the countries that are produced in, about 800 suppliers which have again sub-suppliers. Provides training to the suppliers to take ownership on their own sustainability work. all supplies must sign an “sustainability commitment “ as mentioned previously Second tier suppliers Hennes and Mauritz AB, does not works direct with them, therefore does not have direct influence, however they are working in ways to improve the value of their chains on their Shareholder The company has a supervisory board, chairman of the board is Stefan Persson who owns about 186 milion shares of the company. Supply chain Is consisted by the buyers who work allong with a the designers, merchandiser team and patter makers on their headquarters at Stockholm to create, plan and buy future collections; Merchandisers, they are based in 15 of the productions office and work as a bridge between buyers and suppliers. Auditors known as the sustainability team, around 80 people who monitors suppliers work practice following an full audit program, started in February 2016, all sup- pliers must sign the “sustainability commitment” a code of conduct H&M magazine, can be found at: http://www.nevsmodels.co.uk/news/hm-magazine
  • 14. H&M Customer Profile Aoki • Age group 26 to 34 • Passionate about life. • Prefers happiness/Experience rather than money/material • Aspires to became a buyer in H&M • Shops several times a week • Shops mainly at H&M Trend, which is closer to designer clothes. • Enjoy social events and net- working • Enjoy helping others • Enjoys do good things in life, However is aware of the costs • Ambitious and motivated • Aspires to reach a profession- al Status. • Work as a part time manager in retail . • Student rep/ ambassador • Believes Scandina- vian is the perfect Nation to build a future and start a career. • Fashion journalist. • Traveller
  • 15. The brand is known by their enormous collaboration with high end designers: • 2004: Karl Lagerfeld • 2005: Stella McCartney, Elio Fiorucci, Solange Azagury-Partridge • 2006: Viktor & Rolf • 2007: Roberto Cavalli • 2008: Rei Kawakubo and Comme des Garçons • 2009: Matthew Williamson, Jimmy Choo, Sonia Rykiel • 2010: Sonia Rykiel, Lanvin • 2011: Versace • 2012: Versace, Marni, Maison Martin Margiela • 2013: Isabel Marant • 2014: Alexander Wang • 2016: Balmain Style icon collaborations • 2006: Madonna • 2007: Madonna, Kylie Minogue • 2012: Anna Dello Russo • 2012: David Beckham • 2013: Beyoncé H&M Design Award Winners • 2012: Stine Riis • 2013: Minju Kim • 2014: Eddy Anemian A selection of other collaborations • 2008: Fashion Against Aids • 2008: Marimekko • 2009: Fashion Against Aids • 2009: Jesper Waldenstam, Liselotte Watkins (H&M Home) • 2010: Black Book • 2010: Julie Verhoeven (H&M Home) • 2010: Lovisa Burfit (H&M Home) • 2011: Elin Kling • 2011: Fashion Against Aids • 2011: Swedish Hasbeens • 2011: Knotted Gun, Non-Violence organisation • 2011: Trish Summerville, The Stockholm collection: The Girl • 2015: Coachella With the Dragon Tattoo • 2012: Fashion Against Aids • 2013: H&M for Brick Lane Bikes H&M most successful collaboration to date, can be found at: https://statsinstilettos.com/2015/10/22/balmain-
  • 16. Conclusion For all the above mentioned reasons, I believe Hennes and Mauritz AB is therefore the multi-channel retailer to watch for. As a result of being an Scan- dinavian brand, the retailer offers freshness and a clean look to the industry, growing massively and built on a strong reputation around their customers and social media, continuing to impress with their collaborations, environmental consciousness, and welfare; bringing integrity to the fast fash- ion world. The fact that in my point of view, will contribute significantly, to overtake their biggest competitor Zara, as one seems to lack in innovation and slightly repetitive, failing to fulfil this new generation of fast consumers who rather pay less for their garments and have more options in their wardrobe. Being one of Hennes and Mauritzs AB, biggest customer and aspiring employ- ee, I extremely recommend this fun, innovative and futuristic brand. 29.99 Jumper Shop at HM.com H&M advert created by me for Creative Marketing.
  • 17. Bibliography Muran, Lisa. “Profile of H&M: A Pioneer of Fast Fashion.” Textile Outlook International (July 2007): 11-36. Textile Technology Index. EBSCO. Mary Couts Burnett Library, Fort Worth, Texas. Sheridan, M., Moore, C., Nobbs, K. (2005) “Fast Fashion Requires Fast Mar- keting: the role of category management in Fast Fashion Positioning”, Journal of Fashion Marketing and Management, vol. 10, No. 3, pp. 301-315. Angus S. (2010), "Oxford dictionary of English", 3rd edn. p.727, Oxford university press. Business of fashion (2016) Uk. Available at http:// www.businessoffashion. com (accessed 28 March, 2016) Bussiness insider (2015) UK. Available at http://www.businessinsider.com (Accessed: 28 March, 2016) CORE (2009) UK. Available at https://core.ac.uk/ (Accessed: 26 April, 2016) Dafont (2015) US.Available at : http://www.dafont.com (Accessed: 28 March, 2016) Fast fashion trend. Available at http://fastfashiontrend.wordpress.com (Ac- cessed: 28 March, 2016) International franchising (2016) Available at http://.internationalfranchisedi- rectory.net/ H&M (2016) UK. Available at http://www.hm.com/abouthm(Accessed: 28 March, 2016) WARC (2016) UK. Available at http:// http://www.warc.com/(Accessed: 24 April, 2016) WGSN (2016)UK. Available at https://www.wgsn.com/blogs/hm-(Accessed: 24 April, 2016) Wall Street Journal http://www.wsj.com (Accessed: 26 April, 2016) Write pass (2015)Uk. Available at http://writepass.com/journal/2015/ Zara (2016)Uk.Available at https://www.inditex.com/brands Sources: Appendix, Regular visits to H&M stores in different locations and countries, questioning employees, exploring the layouts and environment. Notes collected through out the year at the module. Please check the link bellow for the video I have done for a possi- ble idea of H&M advertising. Can be found at http://akavenue.com/grand-re-opening-of-hm-in-indy/ https://youtu.be/Mqd6XtYyclM
  • 18. 500 words learning Journal It has been an amazing year, more that I ever wished or would expect. Being selected as student representative, student ambassador, writer for the UEL magazine and winning the very competitive scholarship going glob- al. Having a background in marketing, Intro- duction To Marketing is therefore the mod- ule of my preference. On the next paragraph, I will justify my statement. Although this module is mainly theory, I believe it will be relevant for my career as nowadays marketing is fundamental in any company. What made this module exciting were the enormous opportunities within the industry, for instance, when we went to Savile Row, interviewing the logistics, I found it extreme- ly interesting. The shop assistants were very helpful and keen to help! Some of them gave me samples while others allowed me to see where the bespoke suits were made, during their working hours so I could experience all the process, it build my confidence and moti- vation to learn more. Another good example, was the time we went to Westfield, White city, it also boast my confidence on areas I was unfamiliar with, such as Journal- ism (until then) I gathered as much information as I could and also invited friends to participate. Last but not least the one I enjoyed the most was when we went to Agnes B pop up event (picture above) and I interview the designer, in consequence, I created a network directly with the industry and felt proud of representing my University. Working as a group is already a challenge, however in this module, we had the opportunity of choosing who we would like to work with which contributed massively to have great marks as we coordinated perfectly. For all the above reason, I believe it is a great module to have along with Creative Marketing which I'm looking forward to return next year!