KARTIKA|CHHAVI|NEELAM|SAMARTH|SOWMYA|TRIPARNA

ERLING PERSSONFounder of

EST. In 1947

Hennes & Mauritz AB

Existence-62 Countries

Over 4000 Stores globally

“ Fashion & Quality at the best price”

9 Stores in India

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VR Bengaluru, Black Box,Whitefield Main Road, Mahadevpura 560048 Bengaluru

H & M in Bengaluru

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Store Design & Store Layout

RETAIL STORE ONLINE STORE

Store Front : -Shows some outfits & designs in the store-Informs about Big season SaleStore Layout:-Free flow layout-Easy to find clothes

Web Front : -Shows many outfits-Shows different categories-Shows big mid-season sales

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MERCHANDISING PHILOSPHY AT H & M

Must reflect the target market

It consist of the activities involved in acquiring particular goods and services and making them available at the right place, time, prices, and quantities that enables a retailer to reach its goals

Retailer needs to decide-Breadth of assortment(NARROW/WIDE),Depth of assortment(Deep/Shallow),Quality of assortment(high/med/low),Store Brands or National Brands, Pricing policies 5

MERCHANDISE MIX AT H & M

The right mix of modern basics, current fashion and latest trends.

A varied range that inspires customers to both browse and shop

Each store has the right stock of right pieces.

Flexible assortment planning ensures that each store’s selection feels

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MERCHANDISE MIX AT H & M

Men's wear33%

Women's Wear45%

Footwear4%

Accessories12%

Kid's Wear6%

Men's wear Women's Wear Footwear AccessoriesKid's Wear

Men’s- 18.9 %Women’s- 81.8%

Men’s- 39.7%Women’s-60.3%

Boy- 48.6%Girl-51.4%

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WOMENS WEAR

DREESES & JUMPSUITS

TOPS,SHIRTS & BLOUSES

SKIRTS & SHORTS

BLAZERS & KIMONOS

TROUSERS & JEANS

CARDIGANS & JUMPERS

SWIMWEAR LINGERIE ACCESSORI

ES

NIGHTWEAR

FOOTWEAR

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8%

19%

8%

5%

13%4%0%

11%

2%

3%

4%

3%

20%Jeans & TrousersAccessoriesDresses & JumpsuitsBlazers & JacketsJumpers & CardigansSkirts & ShortsSwimwearLingerieNightwearSportswearFootwearMaternity WearTop Wear

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WOMEN’S WEAR AT H &M

DRESSES & JUMPSUITS

CATEGORIES SIZES

COLOURS MATERIALS

SHORT MID-LENGTH MAXI JUMPSUITS

XS - XL

COTTON

VISCOSE

JACQUARD

INR 5,27- 21,921

LACE

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TOPS,SHIRTS & BLOUSES

CATEGORIES SIZES

COLOURS MATERIALS

VESTSCROP TOPSBASICSLONG SLEEVESHORTSLEEVEBLOUSESSHRUGS

XS - XL

COTTON

POLYESTER

VISCOSE

INR 351- 3,520 11

SKIRTS & SHORTS

CATEGORIES SIZES

COLOURS MATERIALS

COTTONPOLEYSTER

XS - XLShortMidiMaxiA-LinePencilPleated

INR 703- 7,042 12

BLAZERS & KIMONOS

CATEGORIES SIZES

COLOURS MATERIALS

WaistcoatsFitted jacketsDraped jacket

XS - XL

COTTON

POLYESTER

DENIM

INR 1,143- 5,281 13

TROUSERS & JEANS

CATEGORIES SIZES

COLOURS MATERIALS

24/30- 36/34

COTTON

INR 703- 3,520

DENIM

Super skinnySkinnyShapingStraightBootcutBoyfriendLoose

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CARDIGANS & JUMPERS

CATEGORIES SIZES

COLOURS MATERIALS

XS - XL

COTTONWOOLACRYLIC

INR 799-5999

JumpersHoodies & SweatshirtCardigansTurtlenecks

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SWIMWEAR

CATEGORIES SIZES

COLOURS MATERIALS

XS - XL

LYCRASPANDEX

INR 1799-2299

Halter NeckSports SwimsuitBeachwear

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LINGERIE

CATEGORIES SIZES

COLOURS MATERIALS

32-44

MeshLaceCottonSatin

INR 399-1999

BrasBriefs & knickersBodys & corsetsBasicsShape lingerieFunctional brasTights

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NIGHTWEAR

CATEGORIES SIZES

COLOURS MATERIALS

XS - XL

COTTONHOSIERYSATIN

INR 799-1999

PajamasNight slips & RobesSlippers

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SPORTSWEAR

CATEGORIES SIZES

COLOURS MATERIALS

XS - XL

COTTON LYCRAPOLYESTER ELASTANE

INR 399-2299

TopsJackets & FleeceBottomsSports BrasRunningTrainingYoga

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FOOTWEAR

CATEGORIES SIZES

COLOURS MATERIALS

35-42

COTTONPOLYESTERRUBBERLEATHER

INR 799-2699

Pumps & High HeelsBallerinasSandals & EspadrillesSneakersBoots & ShoesSlippers

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ACCESSORIES

CATEGORIES SIZES

COLOURS MATERIALS

LEATHERWOOLCOTTON

INR 599-7999

BagsHats/ scarf/ glovesHair AccessoriesSun glassesBeltsJewelryWatches

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MATERNITY WEAR

CATEGORIES SIZES

COLOURS MATERIALS

XS - XL

COTTONDENIM

INR 799-2999

TopsBottomJeansBest BasicsDressesNursingTights & Leggings

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PRODUCT ASSORTMENT ANALYSIS

Street wear

VM as per Sweden

Stock Rotation- 30 Days

Women prefer Vibrant colors

Men prefer Bold colors

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ASSORTMENT DEPTH & WIDTH ANALYSIS

PRODUCT DEPTH PRODUCT WIDTH

Many products in every product line

Many product lines in every category

HAS NARROW & DEEP ASSORTMENT 24

COMPETITORS

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THE MARKETING MIX

Classified as a brand that offers homogenous shopping products

Up To date with the latest fashion trends, through a dedicated team in Sweden, coordinating with Delhi office

A collection often debuts between the growth stage and the maturity stage, i.e. collection is debuted beginning of every quarter

PRODUCT

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PROMOTION

H&M’s target customers are young women who want more fashion cloth at low price

A blog written by Miss. Malini prior to store launch

A multi-channel promotion strategy -advertising, internet promotion, sales promotion was adapted by H&M as well as promotion through youth icons

Yearly competition inviting designer students aged b/w 19-25.

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PLACE

Distribution channel is direct distribution, from producer to customers. By cutting middle transaction, it reduces cost and assures quick delivery

Design clothes and outsources it to developing countries, for example: Basic goods are made in Asia, while fashionable goods are made in Turkey

Does not have any franchise stores

H&M logistics focused on simplicity, reliability and transparency

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RECOMMENDATION: “THE MODEL EFFECT”

Products and Services: Implementation of a Loyalty program, can be signed up through website and mobile app.

Promotion: Development of a new page called “THE COMMUNITY FORUM”, integration with social media.

Place/Process: Trial period of 6 months with an option to integrate with current loyalty programme in India

Presentation: Development of a new page on the website, hyperlinked to the forum page, also integrated with Facebook & Twitter

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Campaigns and designer collaborations

H&M Designer collaborations

2006: Viktor & Rolf2007: Roberto Cavalli2008: Rei Kawakubo and Comme des Garçons2009: Matthew Williamson, Jimmy Choo, Sonia Rykiel2010: Sonia Rykiel, Lanvin2011: Versace2012: Versace, Marni, Maison Martin Margiela2013: Isabel Marant2014: Alexander Wang

Style icon collaborations2006: Madonna2007: Madonna, Kylie Minogue2012: David Beckham2012: Anna Dello Russo2013: Beyoncé

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PRICING STRATEGY

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The price strategy of H&M is designed based on their customers needs which is low price and high fashion. In fact, this is the one of the biggest challenges for H&M. If not making this happen, the special feature of H&M cannot be realized. How could they combine fashion and cheapness?

Few middlemen.Buying in large volumes.Having a broad in-depth knowledge of design.Being cost-conscious at every stage.Having efficient distribution.

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The Recently launched Market Report, which looks at H&M’s global expansion strategy, uncovers the three fundamentals of retail – having the right product,at the right price andat the right time. When retailers align these, they’ve struck upon the golden formula of retailing. Today, we take a closer look at the second fundamental: how to set the right price for your product and win globally.

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This objective was achieved in two steps:

First, H&M outsources the production to countries where the labor cost is much lower. To control transportation cost, outsourcing was arranged according to different product. Those high fashion product which target at the European market were produced in Turkey, because of the short product life cycle. In addition, basic product are produced in Asia because they allow longer transportation time and bear lower risk.

Second, the company also conduct strict cost control plan. For example, very few executives have secretaries or have cell-phone privilege (Jobber, 2007). These two steps allow H&M to achieve a low price fashion business

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Although H&M's low price is the foundation of success, the low price also give H&M a image of bad quality. This image hinders H&M from keeping their customers. When a young girl turns to a middle-aged lady or a school girl becomes a office lady, H&M may not suits them. As a result, H&M face a challenge of constantly attracting new customers. This challenge may calls for more cost in promotion.

INNOVATIONS AT H & M

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Rothwell’s Five Generations of Innovation” Model

Innovation management strategy adopted by H&M falls in the fourth generation of Rothwell’s model: (the Generation of Integrated Business Processes)

This generation is relevant to fast fashion industry as products life cycle is short and companies need to integrate processes with product development to offer the “total concept", by ways of integrating “cross functional innovation "and “parallel process of development "within the company (Roth well, 1992) and throughout working with suppliers for production of new raw materials, collaborating with designers to create collections and interacting with customers by getting their feedback to predict the next trends.

“Vertical linkages” with customers and suppliers as they can be involved in creating new products

“Horizontal linkages” through partnerships and alliances is also seen in H&M’s strategy

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INNOVATION WITH A CAUSE

2008: Fashion Against Aids2008: Marimekko2009: Fashion Against Aids2009: Jesper Waldenstam, Liselotte Watkins (H&M Home)2010: Black Book2010: Julie Verhoeven (H&M Home)2010: Lovisa Burfit (H&M Home)2011: Elin Kling2011: Fashion Against Aids2011: Swedish Hasbeens2011: Knotted Gun, Non-Violence organisation2011: Trish Summerville, The Stockholm collection: The Girl with the Dragon Tattoo2012: Fashion Against Aids2013: H&M for Brick Lane Bikes

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“HIV and AIDS are still growing problems and people lose sight of it.H&M and DAA have found such a hip and accessible way to educate our youth. I think it’s really important to remind people that it’s really cool to be safe."

FASHION AGAINST AIDS COLLECTION

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KNOTTED GUN – NON VIOLENCE COLLECTION

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“Sustainability is a long-term trend at H&M. This April H&M,

as part of its focus on sustainability, will introduce

Conscious Collection, an ongoing range for women, men

and kids, made from environmentally-adapted and

greener materials such as organic cotton, Tencel® and recycled polyester. H&M’s

designers have been inspired by different shades of white, one of the most important colours this

spring. A minimalist, tailored look is combined with romantic

lace, Broderie Anglaise, frills and draping. The Conscious

Collection will be on sale in all H&M stores from April 14th.”

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SUSTAINABILITY IS THE WAY !!

H&M was awarded The Deloitte China Sustainability Award 2014 and ranked #11 in Rank a Brand for Sustainability organization website where it’s the top fast fashion retailer in the list

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The conscious collection is an example of H&M’s closed loop process innovationAs a leader in sustainable fashion, H&M avoids waste and uses (no longer used) clothes as resources for new products through recycling and redesign.

An Example of Process Innovation: CONSCIOUS COLLECTION

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IT’S OTHER

VENTURES

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CONCLUSION H&M has come a long way from selling only womens clothing back in 1947 to

become a multinational company serving both men's and womens clothing in most countries worldwide.

It is publicly listed in NASDAQ as OMX of Stockholm. By the end of the first quarter of fiscal year 2014, H&M group had 3,200 stores globally in 54 countries employing 116,000 employees. It announced that sales including VAT amounted to Swedish Krona (SEK)150 billion and a profit after tax of SEK 17.3 billion which is an increase of 13% comparing to fiscal year 2013 and the same percentage of increase for gross profit.

The company does not own any factories and it works with 900 “Independent Suppliers” instead, mainly in Asia

H&M is ranked as the 5th Global Fashion Retailer and gained itself the same rank in the World’s Top 10 Most Innovative Style Company list 2014 according to Fast Company & Inc. website. It’s ranked #30 In Forbes Most Valuable Brands Listand is the first fast fashion brand retailer appears in the list. The company was named 2014 World's Most Ethical Company by the Ethisphere Institute

THANK YOU!46