H & M Marketing Strategy

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Abstract Summary: H&M has been at the forefront of affordable chic for some time now. From its Swedish base, Hennes and Mauritz have grown into a major multinational clothes and cosmetics retailer. Just the place for fashionistas, it now has over 1500 outlets in 28 countries and a turnover in 2007 of over SEK92bn. H&M was one of the first to challenge the retail clothing sector by delivering fast fashion at low prices. The company offers different concepts for women, men, teenagers and children and includes everything from modern basics to high fashion. The collections are supplemented by matching accessories, nightwear, underwear and cosmetics. However H&M does not have factories of its own but has a multitude of designers and buyers and works…show more content…
H&M’s strategy has been developing along, the expansion, through the setup of a proprietary distribution network of centrally controlled stores as well as price-competitiveness and profitability, through very efficient management of production and logistics very short lead times which ensure quick response to market trends and reduction of stocks. H&M was a pioneer in pursuing a strategy of vertical integration with the distribution network. This strategy has allowed the company to directly collect and fully exploit information about sales and consumers in order to improve and accelerate response to the market. H&M’s strategy is to offer fashion and quality at the best price. H&M’s annual report (AR1 2008) emphasizes that “quality” relates to both; H&M’s products exceeding customer expectations, and also customers being satisfied with the company itself. The report states “Taking responsibility for how our operations affect people and the environment is also an essential prerequisite for H&M’s continued profitability and growth.” H&M is driven by strong values such as commercial mindset, simplicity, constant improvement, cost consciousness and entrepreneurship. Long-term strategic goals of H&M in the Annual Report, H&M, and CEO Rolf Ericsson state that the long term goal is to “Make fashion available to everyone, give the customer a fashion experience that strengthens H&M brand”. They also state the goal of a 10-15% increase in the number of stores every year, which would be funded internally. The aim to increase sales in existing stores, while focusing on quality and continued profitability. How does H&M want to get there? To execute its strategy H&M focuses on 3 main aspects of its business concept, Price, which is controlled by: limiting the number of middlemen, buying in large volumes, relying on its in-depth, extensive expertise within the design, fashion, and textile industries, buying the right

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