Merchandising mix of H & M.;Also Pricing,Innovation and Marketing.
- 2. ERLING PERSSON Founder of EST. In 1947 Hennes & Mauritz AB Existence-62 Countries Over 4000 Stores globally “ Fashion & Quality at the best price” 9 Stores in India 2
- 3. VR Bengaluru, Black Box, Whitefield Main Road, Mahadevpura 560048 Bengaluru H & M in Bengaluru 3
- 4. Store Design & Store Layout RETAIL STORE ONLINE STORE Store Front : -Shows some outfits & designs in the store -Informs about Big season Sale Store Layout: -Free flow layout -Easy to find clothes Web Front : -Shows many outfits -Shows different categories -Shows big mid-season sales 4
- 5. MERCHANDISING PHILOSPHY AT H & M Must reflect the target market It consist of the activities involved in acquiring particular goods and services and making them available at the right place, time, prices, and quantities that enables a retailer to reach its goals Retailer needs to decide-Breadth of assortment(NARROW/WIDE),Depth of assortment(Deep/Shallow),Quality of assortment(high/med/low),Store Brands or National Brands, Pricing policies 5
- 6. MERCHANDISE MIX AT H & M The right mix of modern basics, current fashion and latest trends. A varied range that inspires customers to both browse and shop Each store has the right stock of right pieces. Flexible assortment planning ensures that each store’s selection feels 6
- 7. MERCHANDISE MIX AT H & M Men's wear 33% Women's Wear 45% Footwear 4% Accessories 12% Kid's Wear 6% Men's wear Women's Wear Footwear Accessories Kid's Wear Men’s- 18.9 % Women’s- 81.8% Men’s- 39.7% Women’s-60.3% Boy- 48.6% Girl-51.4% 7
- 8. WOMENS WEAR DREESES & JUMPSUITS TOPS,SHIRTS & BLOUSES SKIRTS & SHORTS BLAZERS & KIMONOS TROUSERS & JEANS CARDIGANS & JUMPERS SWIMWEAR LINGERIE ACCESSORIES NIGHTWEAR FOOTWEAR 8
- 9. 8% 19% 8% 5% 13%4% 0% 11% 2% 3% 4% 3% 20% Jeans & Trousers Accessories Dresses & Jumpsuits Blazers & Jackets Jumpers & Cardigans Skirts & Shorts Swimwear Lingerie Nightwear Sportswear Footwear Maternity Wear Top Wear 9 WOMEN’S WEAR AT H &M
- 10. DRESSES & JUMPSUITS CATEGORIES SIZES COLOURS MATERIALS SHORT MID-LENGTH MAXI JUMPSUITS XS - XL COTTON VISCOSE JACQUARD INR 5,27- 21,921 LACE 10
- 11. TOPS,SHIRTS & BLOUSES CATEGORIES SIZES COLOURS MATERIALS VESTS CROP TOPS BASICS LONG SLEEVE SHORTSLEEVE BLOUSES SHRUGS XS - XL COTTON POLYESTER VISCOSE INR 351- 3,520 11
- 12. SKIRTS & SHORTS CATEGORIES SIZES COLOURS MATERIALS COTTON POLEYSTER XS - XL Short Midi Maxi A-Line Pencil Pleated INR 703- 7,042 12
- 13. BLAZERS & KIMONOS CATEGORIES SIZES COLOURS MATERIALS Waistcoats Fitted jackets Draped jacket XS - XL COTTON POLYESTER DENIM INR 1,143- 5,281 13
- 14. TROUSERS & JEANS CATEGORIES SIZES COLOURS MATERIALS 24/30- 36/34 COTTON INR 703- 3,520 DENIM Super skinny Skinny Shaping Straight Bootcut Boyfriend Loose 14
- 15. CARDIGANS & JUMPERS CATEGORIES SIZES COLOURS MATERIALS XS - XL COTTON WOOL ACRYLIC INR 799-5999 Jumpers Hoodies & Sweatshirt Cardigans Turtlenecks 15
- 16. SWIMWEAR CATEGORIES SIZES COLOURS MATERIALS XS - XL LYCRA SPANDEX INR 1799-2299 Halter Neck Sports Swimsuit Beachwear 16
- 17. LINGERIE CATEGORIES SIZES COLOURS MATERIALS 32-44 Mesh Lace Cotton Satin INR 399-1999 Bras Briefs & knickers Bodys & corsets Basics Shape lingerie Functional bras Tights 17
- 18. NIGHTWEAR CATEGORIES SIZES COLOURS MATERIALS XS - XL COTTON HOSIERY SATIN INR 799-1999 Pajamas Night slips & Robes Slippers 18
- 19. SPORTSWEAR CATEGORIES SIZES COLOURS MATERIALS XS - XL COTTON LYCRA POLYESTER ELASTANE INR 399-2299 Tops Jackets & Fleece Bottoms Sports Bras Running Training Yoga 19
- 20. FOOTWEAR CATEGORIES SIZES COLOURS MATERIALS 35-42 COTTON POLYESTER RUBBER LEATHER INR 799-2699 Pumps & High Heels Ballerinas Sandals & Espadrilles Sneakers Boots & Shoes Slippers 20
- 21. ACCESSORIES CATEGORIES SIZES COLOURS MATERIALS LEATHER WOOL COTTON INR 599-7999 Bags Hats/ scarf/ gloves Hair Accessories Sun glasses Belts Jewelry Watches 21
- 22. MATERNITY WEAR CATEGORIES SIZES COLOURS MATERIALS XS - XL COTTON DENIM INR 799-2999 Tops Bottom Jeans Best Basics Dresses Nursing Tights & Leggings 22
- 23. PRODUCT ASSORTMENT ANALYSIS Street wear VM as per Sweden Stock Rotation- 30 Days Women prefer Vibrant colors Men prefer Bold colors 23
- 24. ASSORTMENT DEPTH & WIDTH ANALYSIS PRODUCT DEPTH PRODUCT WIDTH Many products in every product line Many product lines in every category HAS NARROW & DEEP ASSORTMENT 24
- 25. COMPETITORS 25
- 26. THE MARKETING MIX Classified as a brand that offers homogenous shopping products Up To date with the latest fashion trends, through a dedicated team in Sweden, coordinating with Delhi office A collection often debuts between the growth stage and the maturity stage, i.e. collection is debuted beginning of every quarter PRODUCT 26
- 27. PROMOTION H&M’s target customers are young women who want more fashion cloth at low price A blog written by Miss. Malini prior to store launch A multi-channel promotion strategy - advertising, internet promotion, sales promotion was adapted by H&M as well as promotion through youth icons Yearly competition inviting designer students aged b/w 19-25. 27
- 28. PLACE Distribution channel is direct distribution, from producer to customers. By cutting middle transaction, it reduces cost and assures quick delivery Design clothes and outsources it to developing countries, for example: Basic goods are made in Asia, while fashionable goods are made in Turkey Does not have any franchise stores H&M logistics focused on simplicity, reliability and transparency 28
- 29. 29 RECOMMENDATION: “THE MODEL EFFECT” Products and Services: Implementation of a Loyalty program, can be signed up through website and mobile app. Promotion: Development of a new page called “THE COMMUNITY FORUM”, integration with social media. Place/Process: Trial period of 6 months with an option to integrate with current loyalty programme in India Presentation: Development of a new page on the website, hyperlinked to the forum page, also integrated with Facebook & Twitter
- 30. 30 Campaigns and designer collaborations H&M Designer collaborations 2006: Viktor & Rolf 2007: Roberto Cavalli 2008: Rei Kawakubo and Comme des Garçons 2009: Matthew Williamson, Jimmy Choo, Sonia Rykiel 2010: Sonia Rykiel, Lanvin 2011: Versace 2012: Versace, Marni, Maison Martin Margiela 2013: Isabel Marant 2014: Alexander Wang Style icon collaborations 2006: Madonna 2007: Madonna, Kylie Minogue 2012: David Beckham 2012: Anna Dello Russo 2013: Beyoncé
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- 32. PRICING STRATEGY 32 The price strategy of H&M is designed based on their customers needs which is low price and high fashion. In fact, this is the one of the biggest challenges for H&M. If not making this happen, the special feature of H&M cannot be realized. How could they combine fashion and cheapness? Few middlemen. Buying in large volumes. Having a broad in-depth knowledge of design. Being cost-conscious at every stage. Having efficient distribution.
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- 34. 34 The Recently launched Market Report, which looks at H&M’s global expansion strategy, uncovers the three fundamentals of retail – having the right product, at the right price and at the right time. When retailers align these, they’ve struck upon the golden formula of retailing. Today, we take a closer look at the second fundamental: how to set the right price for your product and win globally.
- 35. 35 This objective was achieved in two steps: First, H&M outsources the production to countries where the labor cost is much lower. To control transportation cost, outsourcing was arranged according to different product. Those high fashion product which target at the European market were produced in Turkey, because of the short product life cycle. In addition, basic product are produced in Asia because they allow longer transportation time and bear lower risk. Second, the company also conduct strict cost control plan. For example, very few executives have secretaries or have cell-phone privilege (Jobber, 2007). These two steps allow H&M to achieve a low price fashion business
- 36. 36 Although H&M's low price is the foundation of success, the low price also give H&M a image of bad quality. This image hinders H&M from keeping their customers. When a young girl turns to a middle-aged lady or a school girl becomes a office lady, H&M may not suits them. As a result, H&M face a challenge of constantly attracting new customers. This challenge may calls for more cost in promotion.
- 37. INNOVATIONS AT H & M 37 Rothwell’s Five Generations of Innovation” Model Innovation management strategy adopted by H&M falls in the fourth generation of Rothwell’s model: (the Generation of Integrated Business Processes) This generation is relevant to fast fashion industry as products life cycle is short and companies need to integrate processes with product development to offer the “total concept", by ways of integrating “cross functional innovation "and “parallel process of development "within the company (Roth well, 1992) and throughout working with suppliers for production of new raw materials, collaborating with designers to create collections and interacting with customers by getting their feedback to predict the next trends. “Vertical linkages” with customers and suppliers as they can be involved in creating new products “Horizontal linkages” through partnerships and alliances is also seen in H&M’s strategy
- 38. 38 INNOVATION WITH A CAUSE 2008: Fashion Against Aids 2008: Marimekko 2009: Fashion Against Aids 2009: Jesper Waldenstam, Liselotte Watkins (H&M Home) 2010: Black Book 2010: Julie Verhoeven (H&M Home) 2010: Lovisa Burfit (H&M Home) 2011: Elin Kling 2011: Fashion Against Aids 2011: Swedish Hasbeens 2011: Knotted Gun, Non-Violence organisation 2011: Trish Summerville, The Stockholm collection: The Girl with the Dragon Tattoo 2012: Fashion Against Aids 2013: H&M for Brick Lane Bikes
- 39. 39 “HIV and AIDS are still growing problems and people lose sight of it. H&M and DAA have found such a hip and accessible way to educate our youth. I think it’s really important to remind people that it’s really cool to be safe." FASHION AGAINST AIDS COLLECTION
- 40. 40 KNOTTED GUN – NON VIOLENCE COL
- 41. 41 “Sustainability is a long-term trend at H&M. This April H&M, as part of its focus on sustainability, will introduce Conscious Collection, an ongoing range for women, men and kids, made from environmentally-adapted and greener materials such as organic cotton, Tencel® and recycled polyester. H&M’s designers have been inspired by different shades of white, one of the most important colours this spring. A minimalist, tailored look is combined with romantic lace, Broderie Anglaise, frills and draping. The Conscious Collection will be on sale in all H&M stores from April 14th.”
- 42. 42 SUSTAINABILITY IS THE WAY !! H&M was awarded The Deloitte China Sustainability Award 2014 and ranked #11 in Rank a Brand for Sustainability organization website where it’s the top fast fashion retailer in the list
- 43. 43 The conscious collection is an example of H&M’s closed loop process innovation As a leader in sustainable fashion, H&M avoids waste and uses (no longer used) clothes as resources for new products through recycling and redesign. An Example of Process Innovation: CONSCIOUS COLLECTION
- 45. 45 CONCLUSION H&M has come a long way from selling only womens clothing back in 1947 to become a multinational company serving both men's and womens clothing in most countries worldwide. It is publicly listed in NASDAQ as OMX of Stockholm. By the end of the first quarter of fiscal year 2014, H&M group had 3,200 stores globally in 54 countries employing 116,000 employees. It announced that sales including VAT amounted to Swedish Krona (SEK)150 billion and a profit after tax of SEK 17.3 billion which is an increase of 13% comparing to fiscal year 2013 and the same percentage of increase for gross profit. The company does not own any factories and it works with 900 “Independent Suppliers” instead, mainly in Asia H&M is ranked as the 5th Global Fashion Retailer and gained itself the same rank in the World’s Top 10 Most Innovative Style Company list 2014 according to Fast Company & Inc. website. It’s ranked #30 In Forbes Most Valuable Brands Listand is the first fast fashion brand retailer appears in the list. The company was named 2014 World's Most Ethical Company by the Ethisphere Institute
- 46. THANK YOU! 46