Pricing and Retail Strategy of H&M Hennes & Mauritz (H&M) is a Swedish clothing retail company. The company was founded by Erling Pesson in 1947. The first H&M store was opened in Vaesteras, Sweden in 1947. The mission of H&M is to offer fashion and quality at the best price where “quality includes ensuring that products are manufactured in a way that is environmentally and socially sustainable” (H&M, vision & policy, n.d., para. 1). This essay is to highlight the current market analysis, pricing strategy, retail strategy, and competitive advantage analysis of the company. Current Market Analysis H&M is the world’s second largest retailer, only behind its main rival Zara of Inditex (Petro, 2012). The company currently has 3006 stores in 53 countries. The company does not own any factories. H&M outsources production to network of 800 independent suppliers; 75% in Asia and 25% in Europe. In order to increase the efficiency and productivity of its supply chain, the company strategically locates its network of 20 to 30 production offices close to its suppliers. According to Stockholm Newsroom, the pretax profit of the company for the month of June to August of 2013 is $907 million, which indicates an 11 rise in turnover (Pollard, 2013). The company continuous development plan facilitates its goal for both brick and mortar, and online stores expansion worldwide. The target segments for H&M, a category specialist store, are trendsetters and fashion/money conscious males and females ranging from 16 to 40 years old with income ranging $15,000 to $60,000 annually. SWOTT Analysis: • Strengths: Desirable fashionable trends at best prices Strong supply chain management through procurement, communication, logistics, and IT infrastructures (Pet... ... middle of paper ... ...nsibly/Raw-Materials/Conscious-Materials.html H&M. (n.d.) Vision & policy. Retrieved at 9:19 PM on November 9, 2013 from http://about.hm.com/en/About/Sustainability/HMConscious/Vision-and-Policy.html Petro, G. (2012, November 5). The future of fashion retailing --- the H&M approach (part 3 of 3). Retrieved from http://www.forbes.com/sites/gregpetro/2012/11/05/the-future-of-fashion-retailing-the-hm-approach-part-3-of-3/ Pollard, N. (2013, September 26). H&M third-quarter profit rises on strong summer collections sales. Retrieved at 11:00 PM on November 9, 2013 from http://www.reuters.com/article/2013/09/26/us-hm-earnings-idUSBRE98P07K20130926?type=companyNews Rayner, C. (2013, September 26). H&M fashions profits from low-end retail strategy [Video file]. Retrieved from http://www.businessweek.com/videos/2013-09-26/h-and-m-fashions-profits-from-low-end-retail-strategy
Topman already has more than 309 fashion stores nationwide with another 50 stores outside the United Kingdom division. Topman boasts the worlds largest fashion store in London with over 200,000 shoppers per week, Topman gets twice deliveries per day and 7,000 looks per season. In the year 2006, Topman’s operating profit hits 110 million with its annual sales of 600 million now. It brings a strong brand image of Topman based on the successful achievement to consumer’s mindset. Strong brand image builds confidence and reliability towards Topman’s product. In a nutshell, expending Topman’s market in Vietnam has a strong potential to gain sustainable profit.
The company’s strategy is customer focus strategy; Nordstrom has followed its faithful philosophy as offering its customers the best possible quality and value service. Being successful in the industry, the company has become a leading in fashion retail industry. When people tend to pay attention on the fashion, so that they are willing to spend more on the premium or exclusive products. Therefore, the company can provide items, which meet customers’ need will be the most successful in the industry. In addition, understanding the important of providing the best customer service, Nordstrom always be professional in their design of the store and employees attitudes such as, all of their stores are design to set the color and lighting, which can create the relax feeling for shoppers. Moreover, Nordstrom employees are well trained to
Maxx benefits from chaos by picking up the pieces, merchandise at a discount, when other retail stores close, or have overruns, or unexpected changes in demand and in return pass these savings on to their customers who shop for value (Levine-Weinberg, 2016) This is the demand-side benefits of scale when the consumer rather pay less for name brand merchandise than to pay more for the same designer in the department store. The stores that where having difficulty in the retail market left themselves vulnerable by not defending their position and T.J. Maxx proactively attacks this opportunity with its purchasing power and passes the savings to its customers. This proactive process of attacking and defending is what Wee (2016) calls the holistic and balanced perspective of handling competition. Moreover, this business warfare strategy of attacking struggling competitors is called offensive marketing warfare strategy (Grewal, 2014).
6. Swoboda, B., Pop, N. and Dabija, D. (2010) ‘Vertical alliances between retail and manufacturer companies in the fashion industry’, Amfiteatru economic, 12(28), pp. 634-649.
Nordstrom retail stores have large hallways, and everything is presented in a very classy manner. The color scheme includes pale yellows, whites, and gold, to provide a more elegant appearance in the store in order to make the shopped feel special. The design is also seen through product organization. Compared to stores like Macy’s, which organize their products based on brand, Nordstrom organizes their products based on lifestyle. Because of this, it is easier for shoppers to find clothes similar to their style as opposed to by brand. In effect, shoppers will purchase more products. This also is a type of experiential retailing, where Nordstrom customers are able to experience the elements of their lifestyle within one section. More so, the product presentation will draw people’s eyes to products, even if they are not looking for it. This gives Nordstrom a competitive advantage in relation to other similar retail stores because it makes their store look more glamorous and high-end. While other stores may focus on value, Nordstrom utilizes the retail positioning strategy to make a customer feel more high-end and
It is important to understand as well as relate to the main analysis, which is present within the various business industries. It can be seen that in order to analyze and understand the different business models in the fashion and clothing industry of high-end brands, Zara is a very important brand of that purpose. Through analyzing the case study of this firm “Zara: IT for Fast fashion”, one can also understand how the businesses place themselves in competitive positions and how they compete in the market.
Lock, Simon. “Rewiring Fashion Week” The Business of Fashion. N.P., 27 September 2013. Web. 21 October 2013
With more than thousands of stores operating in over a hundred different countries, Tommy Hilfiger is one of the most recognized brands in the world when it comes to fashion. The designer clothes allow people to have the classy yet cool look at the same time. In this essay I will be discussing with you Tommy Hilfiger more specifically about the man of the company Tommy Hilfiger, Tommy Hilfigers growth as a global company, as well as its success and awards. As Hilfiger once said, “ The road to success is not easy to navigate, but with hard work, drive and passion, it's possible to achieve the American dream.”
Vision: H&M’s business operations are aimed to run in a way that is socially, economically and environmentally sustainable. By sustainable, they mean that the needs of both present and future generations must be fulfilled.
This report will discuss about how external environment affects Harrods’s modus-operandi and the appropriate marketing strategies that they have to apply in the future.
Under Arnault, the company was the world’s leading luxury product group. Arnault believed that LVMH control of retail chains was critical to luxury brand success. The finer points of retailing were believed to be, influencing of the overall image of luxury products, as much as the product attributes.
Mr. Price is a fashion retailer; this report will focus on the clothing department. Mr. Price clothing aims to sell trendy fashion items at competitive
The sign of moving products promptly from a designer’s table to the retail sales floor has swayed the whole global retail commerce and enticed rivalry. Customers value a “new look” that can be worn for this instant and assess the goods as a monetary fortune; not something that you will keep
After a 4 P analysis of the company one found that it found itself in a luxury market where product quality and constant innovation are key points for the success. That is why the production process and its design can take even months. Product line is extensive however it is only conformed of high priced products. Price in this case is a guarantee of the quality present in the product. Moreover, high pricing represent an element of differentiation that the customer appreciates. However this is not a setback, LVMH has managed to have world wide presence and success. To accomplish it its selective retailing division is of high importance. Nevertheless, promotion posses the major challenge since its through this that the image of the product its transmitted that is why the company poses a major part of its budget in this section. It is Important to note that the percentage allocated is higher than those of most competitors.
Hennes & Mauritz AB (H&M) is a well-known fashion retailing firm that sells fast-fashion clothing for women and youngsters. It is based in Stockholm, Sweden. As of 2013, H&M operates around 2,600 stores in over 55 countries and employed around 116,000 work forces.