IN GERMANY Chris Vorbeck. 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.

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