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Published byMadeleine Wilkins Modified over 9 years ago
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IN GERMANY Chris Vorbeck
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HISTORY OF H&M 1947: First Hennes opens in Sweden 1968: Hennes buys Mauritz Widforss – becomes H&M Today, H&M has over 3,000 locations in 53 countries
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“Fashion & quality at the best price.”
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H&M IN GERMANY In 1980, H&M opened their first store in Germany Unlike other German clothing-retail stores H&M’s top market Represents just 2% of German clothing-retail market
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TARGET AUDIENCE 18-35 year olds, especially females Middle Class- Power Distance Individualistic Brand Loyalty
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H&M COMPETITORS
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H&M’s top competitor World’s number one apparel retailer Doesn’t advertise; spends that money on new stores Produces around 11,000 unique items 1770 stores worldwide, 69 in Germany Successful because of speedy product development Takes 4-5 weeks compared to industry standard of 6 months
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Based out of Los Angeles Very new in Germany 1 st German store opened June 8 th, 2013 Opening stores in Munich and Frankfurt 480 Forever 21 locations worldwide, 2 in Germany
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Also new to Germany Founded in England 440 shops in 37 countries Sells out of the department store Karstadt Plans to open 30,000 stores in Germany Township 3 Karstadt-Topshop stores in Germany
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Founded in 1969 out of San Francisco World’s second largest apparel retailer Operates Athleta, Banana Republic & Old Navy GAP has over 3,100 locations internationally In 2004, GAP had 10 German locations H&M bought them out
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H&M IN THE MARKET ZARA is number one in sales worldwide H&M dominates the German market High concentration of stores German stores bring in most money worldwide for H&M Followed by US
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SWOT ANALYSIS
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STRENGTHS Established brand, particularly in Germany Leader in global market Quality clothing at low price-points “Fast fashion” = fast production cycle Focus on sustainability and environmentalism Continuously increasing profits Offer trendy products and staple items Collaborations with celebrity designers Something for everyone
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WEAKNESSES Quality of clothing perceived low “Throw-away fashion” Overstocking of goods with no guarantee of selling Online shopping not available in all markets Lack of innovation – “copycat” clothing Large target audience – no real focus Fit of clothing not consistent throughout brands Definition of “trendy” not the same everywhere
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OPPORTUNITIES Continue expanding into new and existing markets Promote current sustainability practices Establish stores as one-stop shop Focus on price conscious consumers and advertise accordingly Online and mobile shopping capabilities Collaborate with country-specific fashion designers
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THREATS Primary competitors: Forever 21, Topshop, Gap, ZARA Secondary competitors: Urban Outfitters, Express, Charlotte Russe Trends change quickly and frequently Chinese market threat to German market Long term investments potentially not panning out External changes Government policies Politics Taxes and exchange rate fluctuations Unemployment/bad European economy Decrease in discretionary spending
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GERMAN MAGAZINE ADS
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GERMAN WEBSITE IMAGES
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GERMAN BILLBOARD ADS
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GERMAN TELEVISION COMMERCIAL
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TELEVISION COMMERCIAL (ACROSS EUROPE)
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DAVID BECKHAM AUTOGRAPH SIGNING IN BERLIN
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STOREFRONT IN BERLIN
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SOCIAL RESPONSIBILITY Triple Bottom Line Approach Seven Commitments: 1. Provide Fashion for Conscious Customers 2. Choose and Reward Responsible Partners 3. Be Ethical 4. Be Climate Smart 5. Reduce, Reuse, Recycle 6.Use Natural Resources Responsibly 7. Strengthen Communities
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