IN GERMANY Chris Vorbeck. HISTORY OF H&M 1947: First Hennes opens in Sweden 1968: Hennes buys...
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Transcript of IN GERMANY Chris Vorbeck. HISTORY OF H&M 1947: First Hennes opens in Sweden 1968: Hennes buys...
IN GERMANY
Chris Vorbeck
HISTORY OF H&M1947: First Hennes opens in Sweden
1968: Hennes buys Mauritz Widforss – becomes H&M
Today, H&M has over 3,000 locations in 53 countries
“Fashion & quality at the best price.”
H&M IN GERMANYIn 1980, H&M opened
their first store in Germany
Unlike other German clothing-retail stores
H&M’s top marketRepresents just 2% of
German clothing-retail market
TARGET AUDIENCE
18-35 year olds, especially females
Middle Class- Power DistanceIndividualisticBrand Loyalty
H&M COMPETITORS
H&M’s top competitorWorld’s number one apparel retailerDoesn’t advertise; spends that money on new
storesProduces around 11,000 unique items 1770 stores worldwide, 69 in GermanySuccessful because of speedy product
development Takes 4-5 weeks compared to industry
standard of 6 months
Based out of Los AngelesVery new in Germany1st German store opened June 8th,
2013Opening stores in Munich and
Frankfurt480 Forever 21 locations worldwide, 2
in Germany
Also new to GermanyFounded in England440 shops in 37 countriesSells out of the department store
KarstadtPlans to open 30,000 stores in
Germany Township3 Karstadt-Topshop stores in Germany
Founded in 1969 out of San FranciscoWorld’s second largest apparel
retailerOperates Athleta, Banana Republic &
Old NavyGAP has over 3,100 locations
internationallyIn 2004, GAP had 10 German
locationsH&M bought them out
H&M IN THE MARKETZARA is number one in sales
worldwideH&M dominates the German marketHigh concentration of storesGerman stores bring in most money
worldwide for H&MFollowed by US
SWOT ANALYSIS
STRENGTHSEstablished brand, particularly in GermanyLeader in global marketQuality clothing at low price-points“Fast fashion” = fast production cycleFocus on sustainability and environmentalismContinuously increasing profitsOffer trendy products and staple itemsCollaborations with celebrity designersSomething for everyone
WEAKNESSESQuality of clothing perceived low
“Throw-away fashion”Overstocking of goods with no guarantee of
sellingOnline shopping not available in all marketsLack of innovation – “copycat” clothingLarge target audience – no real focusFit of clothing not consistent throughout
brandsDefinition of “trendy” not the same
everywhere
OPPORTUNITIESContinue expanding into new and
existing marketsPromote current sustainability practicesEstablish stores as one-stop shopFocus on price conscious consumers
and advertise accordinglyOnline and mobile shopping capabilitiesCollaborate with country-specific
fashion designers
THREATSPrimary competitors: Forever 21, Topshop, Gap,
ZARASecondary competitors: Urban Outfitters, Express,
Charlotte RusseTrends change quickly and frequentlyChinese market threat to German marketLong term investments potentially not panning outExternal changes
Government policies Politics Taxes and exchange rate fluctuations Unemployment/bad European economy
Decrease in discretionary spending
GERMAN MAGAZINE ADS
GERMAN WEBSITE IMAGES
GERMAN BILLBOARD ADS
GERMAN TELEVISION COMMERCIAL
TELEVISION COMMERCIAL(ACROSS EUROPE)
DAVID BECKHAM AUTOGRAPH SIGNING IN BERLIN
STOREFRONT IN BERLIN
SOCIAL RESPONSIBILITY
Triple Bottom Line Approach
Seven Commitments:1. Provide Fashion for Conscious Customers2. Choose and Reward Responsible Partners3. Be Ethical4. Be Climate Smart5. Reduce, Reuse, Recycle6.Use Natural Resources Responsibly7. Strengthen Communities