Hennes & Mauritz, known better to the world as H&M was established in 1947 in Sweden, offers products in women’s, men’s and children’s clothing as well as cosmetics. H&M’s business is centered on offering “fashion and quality at the best price” for men, women, teenagers and children, and working towards the goal of “giving the customer unbeatable value through the combination of these”.There are a variety of key factors behind H&M’s success, including but not limited to the location of its stores, flexibility of its production and low prices to name a few. H&M hires celebrity designers like Karl Lagerfeld and Stella McCartney to make fashion accessible for everyone and catch consumer’s attention. The firm makes sales through its retail outlets located across 28 countries, also via mail order as well as through its website.
The growth of H&M has been marked by the extension of its offerings of cosmetics and accessories in addition to the apparel line in 1975, through addition of new countries to its market portfolio, as well as development of the catalogue and e-commerce facilities, making the best use of the available technology to reach out to its customers. Compared to others, H&M receives more than 90 percent of its turnover from overseas operations, with Germany being its largest market, contributing in the form of a large share of the company’s total revenue. Its expansion has been relatively moderate particularly during early stages. H&M has been able to consolidate its position in each of the international markets. H&M has followed similar expansion strategy as its competitors, by selecting international markets, based first on physical and cultural distance to the domestic market, and then on other economic indicators such as purchasing power, employment rate and purchasing behaviour. For this matter, H&M considers local information about competitors, demand and accessibility.
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