ANDHINI PUTRI, YESHICA INDRA, ASTARI AJENG
Mar 22, 2016
ANDHINI PUTRI, YESHICA INDRA, ASTARI AJENG
DATA GATHERING ANALYSIS H&M
THURSDAY, 7TH JULY 2011
EXECUTIVE SUMMARY
H&M is the th i rd- largest reta i l brand target ing the young market that is known for i ts "Fashion and qual i ty at the best pr ice.” Having thei r manufactur ing here and seeing the broad prospect of reta i l ing in the Indonesian market, there has been some rumors addressing the H&M franchise here..
EXECUTIVE SUMMARY
Hav ing done va r i ous t ypes o f resea rch , we ana l y ze tha t no t on l y the re a re much demands fo r i t , bu t the H&M re ta i l wou ld be pos i t i ve l y accep ted by the I ndones ian marke t wh ich a re av id f ash ion consumers . A l t hough known fo r i t s a f fo rdab le p r i ce , the marke t wou ld s t i l l be w i l l i ng to pay more fo r the advan tage o f hav ing an H&M in Grand o r P l aza I ndones ia ra the r than hav ing to fl y ou t to Hong Kong o r S ingapore fo r the c loses t s to re . Desp i te obv ious compet i t i ons such as Za ra , Fo reve r21 and o the r rap id g row ing I n te rna t i ona l b rands , H&M wou ld do ve r y we l l .
INTRODUCTION
BACKGROUND INFORTMATION & HISTORY
H&M is a Swed ish re ta i l -c lo th ing company, was founded in 1947 by Er l i ng Persson by the concept o f c lo thes s to res se l l i ng s ty l i sh garments a t low pr ices. He named the s to re ‘Hennes ’ wh ich s tood fo r ‘hers ’ in Swed ish known fo r i ts fas t - fash ion c lo th ing o f fe r ings fo r women, men, teenagers and ch i ld ren. Product ion is outsourced to approx imate ly 800 fac tor ies in Europe and As ia , inc lud ing Indones ia .
BACKGROUND INFORTMATION & HISTORY
Today, H&M is the wor ld ’s th i rd- la rges t re ta i l e r by sa les w i th over 2,300 s to res in 41 count r ies . I t managed to g row qu ick l y by o f fe r ing c lo th ing tha t i s seen as both fash ionab le and reasonab ly p r iced.
I t made i ts mark on the appare l i ndus t r y, m ix ing the la tes t t rends w i th fash ion c lass ics .
H&M’s bus iness mode l i s based on "Fash ion and qua l i t y a t the bes t p r ice . "
DEFINE TERMS H & M M a r k e t i n g M i x ( P l a c e , P r o d u c t , P r i c e a n d P r o m o t i o n ) P l a c e i s c o n s i d e r e d o n e o f t h e m o s t i m p o r t a n t c o n c e p t s i n b u s i n e s s f o r H & M . B y o p e n i n g s t o r e s i t c r e a t e s a d i s t r i b u t i o n c h a n n e l t o p e o p l e t o p u r c h a s e t h e i r p r o d u c t . O t h e r c o u n t r i e s a l s o h a v e d e v e l o p e d o n l i n e s h o p p i n g f o r H & M , t h i s w a y t h e i r c u s t o m e r w o u l d h a v e a e a s i e r w a y t o p u r c h a s e . H & M s a i d t h a t d i s t r i b u t i o n c h a n n e l i s v e r y i m p o r t a n t f o r t h e m b e c a u s e i t i n c r e a s e s t h e i r s t o r e ’ s p o p u l a r i t y .
H & M ’s p r o d u c t s a r e h e a v y w e i g h t e d o n t h e i r f a s h i o n s e n s e a n d q u a l i t y . T h e r e f o r e i t s a t i s fi e s t h e n e e d o f i t s c u s t o m e r s . T h i s i s w h a t m a k e s H & M ’ s p r o d u c t a t t r a c t i v e .
T h e p r i c e s f o r H & M c l o t h e s a r e n o t e x p e n s i v e . H & M a l s o p r o m o t e s b u l k b u y i n g i n t h e i r s h o p s . T h e i r p r i c e s a r e w h a t a t t r a c t e d c u s t o m e r s t o r e - v i s i t . T h e p r i c e s a r e u s u a l l y c h e a p o r r e a s o n a b l e .
P r o m o t i o n i s l i s t e d o n e o f t h e m o s t c o m p l e m e n t a r y s a l e s c h a n n e l s . I t b r i n g s a t t e n t i o n t o t h e b u s i n e s s t h e r e f o r e w i l l g i v e l e a d t o t h e i n c r e a s e o f t h e i r b r a n d p o p u l a r i t y a n d l o y a l t y . T h i s m e a n s , H & M n o w h a s s e t u p a s u c c e s s f u l i m a g e i n p e o p l e ’ s m i n d .
DEFINE TERMS
For eve r y company, no t j us t H&M, the b igges t th rea t to en te r i n to a i n te rna t iona l marke ts i s whethe r the i r co rpora te cu l tu re wou ld be ab le to adapt to the new env i ronment . Fo r examp le , i f H&M were to be he re i t wou ld be d i f f e ren t f rom the o the rs because o f buye rs .
Soc ia l i s a l so one o f the th rea ts when en te r i ng to a i n te rna t iona l marke t . I f the b rand i s no t acceptab le to the soc ie t y H&M w i l l have to su f fe r f rom the l ack o f cus tomers .
To ana lyze the poss ib i l i t y o f an H&M f ranch ise in Indones ia a long w i th i ts advantages and d isadvantages.
To gather the pub l ic ’s react ion about i ts open ing a f ranch ise in Indones ia.
Ana lyz ing H&M’s compet i t i veness aga inst a l l the ex is t ing re ta i l in Indones ia, loca l and in te rnat iona l .
OBJECTIVES
PROBLEM STATEMENT
H&M sa i d t h a t d i s t r i b u t i o n channe l i s v e r y impo r t a n t f o r t h em because i t i n c r e ases t h e i r s t o r e ’s popu l a r i t y f o r peop l e t o pu r chase t h e i r p r oduc t . O t he r coun t r i e s a l s o ha ve de ve l oped on l i n e s hopp i ng f o r H&M.
H&M is unavailable in Indonesia in form of a retai l store. Would ( T h e c l o s e s t s t o r e i s l o c a t e d i n H K , a n d a n o t h e r o n e o p e n i n g i n S i n g a p o r e ) .
PROBLEM STATEMENT
Would H&M serve well in the Indonesian market satisfying its avid consumers?
RESEARCH METHODS & ANALYSIS
DESCRIPTIVE TYPE OF RESEARCH DESIGN
OBSERVATION HOW THE DATA WAS COLLECTED
http://shop.hm.com/
Since the physical store i tsel f are not avai lable here, we observe that the Indonesian market i tsel f rarely ever shop at the web store i tsel f .
http://shop.hm.com/
Onl ine shopping for the market is l imited just Facebook and blogs. Though there are some who does purchase H&M off their officia l web, most people just do not bother with Internat ional shipping.
QUESTIONNAIRE HOW THE DATA WAS COLLECTED
QUESTIONNAIRE
Our methods:
MANUAL & ONLINE
MANUAL/DISTRIBUTED THROUGH VARIOUS
MALLS, HIGH SCHOOL AND COLLEGES
ONLINE/
HTTP://
WWW.SURVEYMONKEY.COM/S/RYJDL6G
WWW.SURVEYMONKEY.COM/S/RYJDL6G
ONLINE/SURVEY MONKEY
DISTRIBUTED THROUGH SOCIAL NETWORKING AMONG FRIENDS – ABROAD AND NON.
RESULTS/SURVEY MONKEY & MANUAL
68% THROUGH ONLINE
32% MANUAL
RESULT/PART 1
SOURCE: ONLINE & MANUAL QUESTIONNAIRE RESULT
G e n d e r P e r c e n t a g e
M a l e 2 5 %
F e m a l e 7 5 %
ONLINE/PART 1
SOURCE: ONLINE QUESTIONNAIRE RESULT
ONLINE/PART 1
SOURCE: ONLINE QUESTIONNAIRE RESULT
ONLINE/PART 1
SOURCE: ONLINE QUESTIONNAIRE RESULT
RESULT/PART 2
SOURCE: QUESTIONNAIRE RESULT
Percentage Shopping Media
23 Social Network
19 Webstore
10 Ebay/Amazon
95 Retail
4 Others
RESULTS/PART 2
SOURCE: ONLINE QUESTIONNAIRE RESULT
Percentage
Shopping Budget
30 < 500 IDR
33 500 – 1 MIL IDR
15 1 – 1.5 MIL IDR
18 1.5 – 2 MIL IDR
3 > 2 MIL IDR
1 ABSTAIN
Percentage
Income (Part 1)
31 1-2 MIL
20 2-3 MIL
25 3-4 MIL
15 >4 MIL
9 Abstain
ONLINE/PART 2
SOURCE: ONLINE QUESTIONNAIRE RESULT
ONLINE/PART 3
Percentage Are H&M products durable?
9 Strongly Agree
29 Agree
13 Neither
7 Disagree
0 Strongly Disagree
42 Abstain
RESULT/PART 3
SOURCE: ONLINE & MANUAL QUESTIONNAIRE RESULT
According to the quest ionnai re, people prefer H&M compared to Forever 21
73% Percent of respondents (st rongly ) agree that H&M would do wel l in Indonesia
Percentage Prefer H&M than Forever 21
27 Strongly Agree
34 Agree
20 Neither
10 Disagree
0 Strongly Disagree
9 Abstain
QUESTIONNAIRE LIMITATIONS
-The onl ine questionnaire disable the respondents to check al l strongly agree for Part 3 - The onl ine questionnaire doesn’t let you to put pictures as options
QUESTIONNAIRE LIMITATIONS
-The manual questionnaire takes a lot of t ime and effort to be placed in codebook
FOCUS GROUP DISCUSSION HOW THE DATA WAS COLLECTED
FGD
30th June 2011 Lasal le College, AC 2:
13.00 – 14.00 PM
FGD RESULT
All of our respondents consisted of various college and university students of H&M’s target market and all is well aware or shoppers of H&M.
FGD RESULT
Most of our respondents agree that the main i tems they buy is tops, fo l lowed by accessor ies such as jewel r ies and shoes. Th is resu l t coherent wi th the resu l t w i th our quest ionna i re.
Shopping items Pe r c e n
t a g e P r e f e r
3 8 To p s
1 4 B o t t o m s
1 4 D r e s s e s
1 5 A c c e s s o r i e s
1 7 S h o e s
SOURCE: QUESTIONNAIRE RESULT
FGD RESULT
Half of the respondents cla im that they do use and l ike onl ine medias l ike blogs though not as often because they prefer retai l where they can actual ly observe the i tems.
Shopping media
FGD RESULT
We gather that the respondents do shop at the mal l they f requent ly v is i t fo r the benefit o f the locat ion l i ke Pondok Indah Mal l , and Grand Indones ia/P laza Indones ia for the i r ava i lab i l i t y o f loca l brands there.
Shopping places
FGD RESULT
The favor i te col laborat ing designs that the respondents prefer are by Lanv in and blogger E l in K l ing. Respondents a lso c la im that they would be wi l l ing pay up to 50% higher than the H&M pr ice range for a col laborat ion p iece i f the design is good.
Designer collaborations
FGD RESULT
H&M Weaknesses
FGD RESULT
Al though most of our respondents ind iv idua l ly are aga inst the idea i tse l f , most of them th ink that the H&M sweatshop labor issue abroad won’ t be too much of a bother for Indonesian because they most ly care af fordable pr ice.
Sweatshop labor issue
FGD RESULT
Respondents th ink that H&M franchis ing would do very wel l in Indonesia market despi te the many reta i l compet i tors a l though some th inks that the products wouldn’ t be as good as the abroad because i t a l l depends on the buyers.
H&M franchising
FGD RESULT
Respondents p ick that i f H&M were to open i t would be at Grand Indonesia/Plaza Indonesia due to the space and target market, and not at mal ls such as Pacific Place.
H&M franchising
FGD LIMITATIONS
-During FGD, most of the respondents are late
- During the FGD, most of the respondents cancel their appointments
CONCLUSIONS & RECOMMENDATIONS
H&M themse l ves who sa i d t ha t d i s t r i bu t i on channe l i s ve r y impo r t an t f o r t hem because i t i nc reases t he i r s t o re ’s popu l a r i t y. And t he re i s no be t t e r p l ace t han t he I ndones i an ma rke t t o e xpand f o r t he t a rge t ma r ke t l i v i ng i n I ndones i a wh i ch a re a v i d f ash i on consume rs w i t h a ve rage go i ng t o 2 -3 shopp i ng t r i ps i n a mon th . A l t hough H&M p rov i des on l i ne shopp i ng f o r coun t r i e s i t s s to re a re no t a va i l ab l e a t , t he ques t i onna i r e r esu l t has suppo r t ed t ha t a lmos t 100 pe rcen t o f cos tume rs shops a t a r e t a i l s t o r e . W i t hou t a doub t , a s to re wou ld do ve r y we l l i n he re .
CONCLUSION
Open a f ranchise in Indonesia
I f an H&M store is to open in Indonesia, we recommend i t to be si tuated at Grand Indonesia or Plaza Indonesia.
RECOMMENDATION
THANK YOU.
FOCUS GROUP DISCUSSION FOR H&M
THURSDAY, 30TH JUNE 2011
SHOPPING BEHAVIOUR
What items do you most prefer buying?
SHOPPING BEHAVIOUR
How many times do you regularly shop?
Monthly/Weekly?
SHOPPING BEHAVIOUR
What media do you use to shop?
SHOPPING BEHAVIOUR
Which malls do you frequently visit?
Do you also shop there?
SHOPPING BEHAVIOUR
What brand do you frequently purchase?
H&M BRAND
What do you like most about H&M?
H&M BRAND
Which of these collaborations do you like the most?
SONIA RYKIEL
LANVIN
ELIN KLING
MATTHEW WILLIAMSON
H&M BRAND
What do you think is the weakness of H&M?
H&M BRAND
Are you aware of the sweatshop labor issues abroad?
H&M FRANCHISING
Do you think that would create a conflict of it opening in Indonesia?
H&M FRANCHISING
What do you think of H&M opening a franchise here?
H&M FRANCHISING
With so many existing retail brands, do you think H&M will be able to compete?
H&M FRANCHISING
Suppose H&M opens here, where would you prefer it to be located?
H&M FRANCHISING
Suppose H&M opens here, but its price range has increased, would you stil l buy it?
H&M FRANCHISING
Suppose H&M opens here tomorrow, would you directly shop there?
THANK YOU.
FOCUS GROUP DISCUSSION FOR H&M
THURSDAY, 30TH JUNE 2011
This following questionnaire is done by Lasalle College International Jakarta students as part of a Data Gathering class. The purpose of this questionnaire is to gain knowledge about shopping behavior and to
find out about the opportunity of a foreign retail brand to branch out to Indonesia. The result of this questionnaire is strictly confidential.
Part 1
The following question is about your personal information. You can pick the best or tick (√) more than
one answer.
1. Gender: ○ Male ○ Female
2. Age: ○ < 18 ○ 18 – 22 ○ 22 – 25 ○ > 25
3. Income (disposable or not):
o Rp1,000,000 – Rp2,000,000 ○ Rp2,000,000 – Rp3,000,000
o Rp3,000,000 – Rp4,000,000 ○ > Rp4,000,000
4. Occupation:
o High school student ○ University student
o Housewife ○ Entrepreneur
o Other; please specify ………………………………..
5. Interest (check all that apply):
□ Fashion □ Music □ Photography □ Movies
□ Technology □ Travel □ Sports
□ Other; please specify………………………………..
Part 2
The following question is about your shopping attitude. You may pick the best or more than one answers.
6. Recent study shows that shopping relieves stress. How often do you go shopping in a month? ○ Once ○ 2 -‐ 3 times ○ 3 – 5 times ○ > 5 times
7. Which method do you use to shop? Please check all that apply. □ Online (from social networks such as Facebook, Kaskus, etc) □ Online (from official webstore)
□ Online (shopping website such as Ebay or Amazon) □ Retail (come to the shop) □ Other; please specify………………….
8. How much do you spend on buying clothes monthly? o < Rp500,000 ○ Rp500,000 – Rp1,000,000 ○ Rp1,000,000 – Rp1,500,000
o Rp1,500,000 – Rp2,000,000 ○ > Rp2,000,000
9. What item do you prefer to buy?
○ Tops ○ Bottoms ○ Dresses ○ Accessories ○ Handbags ○ Shoes
o Shoes
o Bags
Part 3
Please check one box for each statement to indicate the extent to which you agree or disagree with each statement.
Questions Strongly Agree Agree Neither Disagree Strongly Disagree
H&M products are always up-‐to-‐date
H&M products are affordable
I prefer to buy H&M products than Forever 21
H&M offers a wide range of products
H&M products are durable
H&M products are durable
H&M would gain many loyal customers in Indonesia
This questionnaire is prepared by Yeshica Indra, Astari Ajeng Maharshi, and Andhini Putri Rahayu.
Technology Methods
SURVEY AND OBSEVATIONAL PLANS
Thursday, May 5, 2011
Yeshica Indra – Fashion Business 3.2
Objective:
1. Compare all the online media traffic through hits and visitors: Newsletter, Official
website, Twitter, Facebook and Youtube
2. Decide which app is gaining more users, H&M for Android or iPhone & iPad
3. Compare the numbers of shoppers online and in store.
4. Find out whether the online site has too much or enough Flash animation that
caused it to load well or not.
5. Find out the site’s usability by reviewing the most and least clicked navigation
categories.
6. Does most website visitors go through the sale page
7. Find out the most reviewed product online.
8. Find out when the online sales most generate income
9. The most and least used payment method used online.
10. Find out the most and least amount people are willing to spend online.
11. The range of countries the online shipping provides.
12. The countries the online newsletter reaches.
PROJECTIVE TECHNIQUES
Association:
1. Fashion
2. Clothes
3. Women
4. Retail
5. Accessories
6. Franchise
7. Stylish
8. Young Adults
9. Affordable
10. Chic
Completion:
I would ____________________________ if an H&M franchise opens in Indonesia.
H&M is ____________________________ than Forever 21.
Construction :
FOCUS GROUP DISCUSSION GUIDE FOR H&M THURSDAY, 30TH JUNE 2011
PREAMBLE (5 minutes)
• Thanks and welcome • Nature of a focus group (informal, multi way, all views acceptable, disagree) • There is no right or wrong answers-‐all about finding out what people think • Audio and video recording • Colleagues viewing • Help self to refreshments • Going to be talking about H&M brand • Questions or concerns?
INTRODUCTION AND WARM UP (5 minutes)
I’d like to go around the room and have you introduced yourselves:
• First name • Are you aware of the brand H&M? • If yes, where?
SHOPPING BEHAVIOR (15 minutes)
• What items do you most prefer buying? • How many times do you regularly shop? (in a month, in a week) • Where do you shop? (Retail, online) • What mall do you most frequently visit? • (Do you also shop there?) • What brand do you frequently purchase?
H&M BRAND (15 minutes)
• What do you like most about H&M? (Price, style, colors, quality) • (Show AD campaigns of H&M) Ask for opinions. • What do you think is the weakness of H&M? • Are you aware of the H&M’s sweatshop labor issues abroad?
H&M FRANCHISE (10 minutes)
• What do you think of H&M opening a franchise in Indonesia? • Do you think the sweatshop labor issue would create a conflict in Indonesia? • Do you think H&M can compete with Indonesia’s retail? Why?
CLOSING EXERCISE (10 minutes)
• Suppose H&M opens here, where would you prefer it to be located? • Suppose H&M opens here tomorrow, would you directly visit the store?
EXPLORE AND REFINE
• Thank the respondents and close the session