Understanding The Brand H&M

Background

2014
H&M Confirms Austr alian Store Opening in 2014

Background
Business concept and strategy
H&M's business concept is to offer fashion and quality at the best price H&Ms business operations aim to be run in a way that is economically, socially and environmentally sustainable Strategy is to be ahead of competition by providing seasons best collection through collaborations with designers Ggrowth target is to increase the number of stores by 1015 percent per year

H&M values
Constant improvement

Entrepreneurial spirit Cost-Conscious

Straight forward and open minded

We are one team

Keep it simple

We believe in people

S.W.O.T
Strengths Strong brand Brand value by Interbrand $16. 75 Mn Strategic partnerships with high profile designers Selection of markets for growth Opportunities Weaknesses Late entry into Asia Pacific Integration of channels Long product cycles

Threats Low switching costs and low brand loyalty in retail industry Mature to declining growth in W. Europe and N. America Barriers to entry are low for new designers

High growth markets Sustainable products

Coverage Worldwide

Competitor analysis
Competitors Global Value proposition Share H&M
1.6 % Fashion and quality at the best price Cutting edge fashion at affordable prices, Scarcity by limited production Inspired by American pop culture, portfolio of brands 80% concentration in Europe, Focus on India, China and Mexico

Core competencies
Brand strength, Affordable fast fashion, high advertising spend, partnerships With designers world wide Just-in-time manufacturing Production in Spain, Sophisticated feedback network, low advertising spend, fast creation Cycle Franchise stores in top 10 apparel markets, Growing online division, leverage brand portfolio Basic styles in many colors, Vertically integrated, Investment into Italian production

ZARA

1.4%

GAP

1.4%

Benetton

0.2%

Sources: Team JEDI analysis, Just-Style.com, company annual reports