Marketing Plan of H&M
H & M CLOTHING INDUSTRY
H&M or Hennes and Mauritz AB a very popular retail company located in Sweden this company is highly known to provide stylish clothing for men and women including children and teen- agers. Their success brought them to expand at least in 40 countries located all over the world and as of today they have already employed at least 87,000 employees around the world. All the designs came from various countries throughout Asia and Europe but the final merchandising plan will largely came from their main office in Sweden employing the designs of their famous fashion industry icons. Owned and operated by Erling Persson in 1948 by selling clothes for lady’s and later expanded in 1968 to full clothing lines for both men and women. Erling entrepreneurial legacy has been passed on to his son Estefan in 1990 until today their company has been fully recognized as a strong brand in the clothing industry especially in European country where it has originated.
Since H& M is a multi-cultural business they have included a fashionable and fun working relationship as part of their cultural working environment to bring about their talents and fashion sense, they also incorporate highly technological advancement process using advance machineries in cutting and sewing their clothing. They have produced excellent workers to handle such machineries from different nationalities beyond differences to gather the best performer all over the world. They have an open door policy so that employees can participate in discussion and exercise fair salaries and wages among them. This has contributed largely to tax revenue generation among countries that they have served.
H & M caters to a broad spectrum of customers with a varied selection of products lines depending on the customer’s preferences and seasonal approach to market segment their products. They have created a large amount of styles so that customers can choose from a wide array of selection so that customers will be able to find their clothing needs whenever they need to visit the stores. Men items include basic to leisure and basic fashion including shoes collection; women have the largest collection from all ages including cosmetics, shoes and underwear and for children they come up with the best solution integration of fashion and durability for safety and comfort they have segmented the clothing according to children’s age brackets. They also had been developing denim and sports wear fashions. This is all parts of company’s marketing technique for customer’s satisfaction initiative in targeting their extensive behavior of selecting varieties of products and brand preferences.
The production has been an open secret to quality development of their products which include a various process from material selection and testing to product segmentation, washing and sewing, flammability testing, button detailing, chemical testing and absorption testing and quality control of final products. They must ensure that these processes are highly expected to pass before distribution to final store display. The best thing is they do not support using of animal fur in their clothing line to protect the welfare of animals and discourage companies who are using it.
H & M has somehow strengthens their position to their near competition in some countries since they have been one of the pioneer in the industry. But in European countries they have tough competitors like Marks & Spencer Zara and Versace clothing and others. They have made a various market research campaigns through interview and online forums or survey and they have gathered consistent data about customer’s satisfaction. Their strength lies mainly of product diversity, pricing strategy that they are able to buy large quantity of garment directly from suppliers so with less middleman to keep the price low and wider distribution. But they have steep competition over Zara through the years that seem to be their only weaknesses up to the now since Zara has been also accepted in European community.
Their distribution and logistics approach has been very successful that they have established 2,200 stores worldwide they can even sell and accept orders through the internet through online service. They never really own the factory but supports from more than 700 suppliers around the world have given them the initiative to properly produce and distribute their products evenly and channeling them all over their worldwide stores locations. Their stores are highly accessible to the best business location and visibility more than distribution is its main concern. Basically their corporate social responsibility is to offer the customers with high quality and fashionable products at the most convenient price to meet the customer’s expectation and demand.