H M Updated Essay

Submitted By Chetan-Somare
Words: 3268
Pages: 14
Open Document
What are the impacts of external environment on H&M Group and how can they respond to the changing environment?
H&M Group is one of the world largest fashion companies and this report has done both the PEST and SWOT analysis for them to penetrate and prosper in the new and existing markets, following series of recommendations. The pest analysis shows that technological factors highly impacted due to quick expansion of stores, penetrating into new markets, using social media, and increasing mobile apps and sales. The swot analysis found the strengths and weaknesses, and the recommendations of the strategy is formulated, so that they can take the opportunities and counter the threats.
1 Introduction

H&M is a Swedish clothing company which comprises different independent brands- H&M, Weekday, COS, Monki, Cheap Monday and & other stories. H&M is one of the world’s largest fashion companies and Germany is H&M’s largest market accounting more than 20 percent sales, followed by the US, UK and France. In 2012, total sales including VAT were SEK 140,948 (USD 21,670.34) million. (hennes & mauritz AB, n.d.)
Until 1968, H&M used to sell only women’s clothing. Today it delivers cheap fashion to the young adults which includes includes womenswear, menswear, childrenswear, footwear, accessories, home furnishings and cosmetics.

The H&M group employs over 104,000 people and it accounts more than 2,800 stores spread in 49 markets in Europe, North America, Asia, North Africa and the Middle East, including franchise markets (H&M 2013).
With a strong offering that appeals to customers around the world, H&M is able to grow successfully in all its existing markets as well as in new ones, with growth among all its brands and through new concepts. The concept of expansion is long term and self financed.
H&M’s growth target is to increase number of stores by 10-15 percent per year and at the same time increase sales in comparable units (H&M). Strong expansion during the year 2012, the Group opened 304 (266) new stores net compared to originally planned 275. China and the US were the largest expansion markets.
H&M plans a net addition of around 325 stores for the financial year 2012/2013. The new fashion brand & Other Stories will open its first stores during spring 2013 in Spain, Germany, Denmark, UK, Italy, France and Sweden. & Other Stories will also be available via online sales in these countries as well as in Belgium, the Netherlands and Finland at stories.com.

Profit after financial items amounted to SEK 22,285 m (20,942). The Group’s profit after tax increased by 7 percent to SEK 16,867 m (15,821), corresponding to SEK 10.19 (9.56) per share (. Karl-Johan Persson, CEO of the H&M, commented that in the financial year 2012 they increased the profits by 1 billion SEK – i.e. an increase of 7 percent compared to the previous year – despite negative effects from large long-term investments and currency translation effects. H&M has three main competitors: Arcadia, Inditex, and Gap (Hoover’s, 2012). Arcadia’s fashion chains include Dorothy Perkins, Miss Selfridge, Wallis, Topshop, and Evans (women’s clothing), as well as Burton and Topman (men’s clothing) (Hoover’s). The company has some 420 franchised stores in more than 30 countries.
Inditex sells on a global scale, with some 4,430 shops in 70-plus countries, under eight different banners: Zara, Oysho, Massimo Dutti, Pull and Bear, Bershka, Stradivarius, Zara Home, and Uterqüe (Hoover’s). Located mostly in Europe, the firm’s stores answer to popular trends by telling designers in Spain what customers are asking for locally (Hoover’s). Zara is H&M’s most relevant competitor.
Gap is known for providing jeans, khakis, and T-shirts. The firm, which operates about 3,150 stores worldwide, built its iconic casual brand on basics for men, women, and children, but over the years has expanded through the urban chic chain Banana Republic and ailing budgeteer Old Navy (Hoover’s, 2010).
Show More

Related Documents: H M Updated Essay

Essay on Marketing Plan

customer unbeatable value by offering fashion and quality at the best price. H&M’s own designers interpret the latest fashion trends and create collections that are accessible to all. We ensure the best price by: •having few middlemen •having a broad, in-depth knowledge of design, fashion and textiles •buying the right products from the right markets •being cost-conscious at every stage H&M is driven by seven important core values: •Keep it simple •Straight forward…

Words 938 - Pages 4

Petals TS Essay

Foot Petals Visit 8/17 A- A. Morrison B- A. Morrison E- M. Sorro H- H. Keaney I- H. Keaney K- K. Wolf M- S. Sarna O- S. Sarna R- M. Smith T- A. Morrison V- C. Lopez X- S. Runyon Global Sales Actual Net Sales- $763,947 ACTUAL Global NWDPM: $3,193 Planned Net Sales- $800,000 Planned Global NWDPM- $3,511 TV Sales Actual Sales- $580,833 Planned Sales- $603,239 Dot Com Sales Actual Net Sales- $182,930 Actual Weighted Min- 239.2 Planned Weighted Min- 227.8 Actual TV…

Words 496 - Pages 2

Future of Fashion Essay

H&M is a Swedish fashion brand providing wide ranges of fashion clothing for women; men and kidswear, including accessories and homeware. This report provides the research on the company in relation to its current operation, customer base and likelihood of business expansion through digital marketing online awareness as to maximize the potential profit opportunities of the World Cup 2014 and the Olympics and Paralympics 2016 in Brazil. The report explores the use of digital marketing of H&M promoting…

Words 3981 - Pages 16

Technical Data Corporation Essay

held BS (1965), Master of Engineering (1966) and MBA (1969) degrees from Cornell University. After receiving his MBA, Parker had been employed in a number of positions in the investment industry. From 1969 to 1971, he worked for Smith Barney is m This case was prepared as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright © 1983 by the President and Fellows of Harvard College. All rights reserved. No part…

Words 7904 - Pages 32

Grameen Bank Critical Risk Assessment Jason Marthaller Essay

Ensuring the updated software in systems c. Location of the branches in terms of security d. The safety of transportation of currency e. The currency reserves available at the centers f. Wireless technology used at the different offices g. Networking between zonal branches and Area offices h. The security concern at the branches i. Evaluation of the genuine need of borrower j. Utilization of the credit facility by the clientele k. Credit Administration l. Credit grant process and structure m. Confidential…

Words 378 - Pages 2

lab report qualitative analysis for identification of metal ions Essay

ion that belong to group I cations were present in the solution. These metal ions combine strongly with chloride ion to give insoluble chloride as the metal of qual scheme group I are soft acids. The ions of Group I insoluble chlorides: M+ + Cl-  MCl Where M+ =…

Words 1693 - Pages 7

Risk Management Plan

MARCH 19, 2014 RISK MANAGEMENT PLAN WATER PROJECT IN SUB-SAHARAN AFRICA PREPARED BY MINA GADELRAB 11584190 Risk Management Plan – 11584190 TABLE OF CONTENT EXECUTIVE SUMMARY ..................................................................................................... 3 1. 2. 3. 4. INTRODUCTION ............................................................................................................ 4 1.1. Project Information ....................................................…

Words 5845 - Pages 24

ValueStreamMapping Warehouse Essay example

Inventory inaccuracies Don’t ship the pounds No space!!!! Need to Expand! WAREHOUSE CHALLENGES + + + + Focus on Manufacturing. Warehouse is a box on the VSM Office & Info Flow Customer Demands Product pushed into warehouse & pulled by customers >HˆL Application of Lean O†‹Œ Principles to an area that L exists because of waste in the value stream or customer Production Suppliers demand/lead time Warehouse is the crossroads of conflicting requirements How Do We Use Lean Techniques for Warehouse…

Words 5250 - Pages 21

Hris Needs Essay

the amount of inbound calls going into the payroll department due to paychecks being incorrect. Allowing employees to enter in their own information leaves only the task of the timesheet being approved by management. References Kavanagh, M., & Thite, M. (2009). Human resource information systems: Basics, applications, and future directions. Thousand Oaks, CA: SAGE Publication, Inc. Retrieved 7/24/2013…

Words 861 - Pages 4

Supporting Online Material For Supracolloidal Reaction Kinetics Of Janus Spheres

structure (up to the six zero modes associated with overall translation and rotation). The vibrational partition function for each mode is then Z m   dqm e    2 m qm 2 kBT  2 (1) , m yielding the free energy per particle, f     1 1 2  . log   Z m    log    m    N N  m  m   (2) Here m ranges only over the rigid modes, which have nonzero spring constant λm. For nonrigid modes, the degrees of freedom must be integrated explicitly (5)…

Words 1964 - Pages 8