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RTM Assignment - 2 (H&M)

H&M is a Swedish clothing retailer known for its fast fashion model. [1] It has almost 4000 stores worldwide and plans for thousands more. [2] H&M achieves fast fashion through high merchandise turnover and constantly updating products with the latest trends. [3] It relies on outsourcing production to over 900 suppliers globally and uses an advanced IT network to integrate operations and ensure timely deliveries.

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364 views17 pages

RTM Assignment - 2 (H&M)

H&M is a Swedish clothing retailer known for its fast fashion model. [1] It has almost 4000 stores worldwide and plans for thousands more. [2] H&M achieves fast fashion through high merchandise turnover and constantly updating products with the latest trends. [3] It relies on outsourcing production to over 900 suppliers globally and uses an advanced IT network to integrate operations and ensure timely deliveries.

Uploaded by

Amitha Maria
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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RETAIL TECHNOLOGY MANAGEMENT

ASSIGNMENT - 2

SUBMITTED TO - MR. BIBHUTI ANAND

SUBMITTED BY - SHREYA SINGH


NIDHI SAIN
ANJALI JAISWAL
AMITHA M PRAVEEN
ARPIT GUPTA
INTRODUCTION

• Founded in 1947, Swedish clothing retailer Hennes & Mauritz


commonly known as H&M, has grown into one of the most
recognizable brands in the fashion industry.
• As reported by Bloomberg, H&M has almost 4000 stores
worldwide and has plans for 7000-8000 more stores in the future.
• The secret to the success of H&M can be attributed to their “fast
fashion” model.
• The retailer achieve this goal by having higher
merchandise turnover and by constantly resupplying the
product pipeline with the latest fashion trends.
• The backbone of fast fashion is its low prices, and fast fashion has
also been pejoratively labeled “cheap chic,” because H&M clothes
are notorious for their “disposable” quality and easy to
manufacture nature.  
H&M's Brand of Fast Fashion

• H&M does not manufacture its products in-house. It outsources its


production to more than 900 independent suppliers across the
world. 
• H&M is able to ensure safe working conditions while increasing
productivity much more naturally, as opposed to enforcement
through routine compliance inspections.
• Only 80% or so of all store merchandise is stocked year round, while
the remaining 20% of H&M products are designed and stocked on
the fly in smaller batches, depending on the prevailing trend.
• To ensure timely delivery and fast lead times, H&M relies on
its state-of-the-art IT network, which allows integration between the
central national office and the satellite production offices.
H&M’s MARKETING MIX STRATEGY

● The marketing mix is the set of controllable, tactical marketing


tools that a company uses to produce a desired response from
its target market.

● It consists of everything that a company can


do to influence demand for its product.

● Marketing strategy helps companies achieve business goals &


objectives, and marketing mix is the widely used framework to
define the strategies.
Marketing Mix of H&M analyses the brand/company which covers
7P’s

1. Product

2. Price

3. Place & Distribution

4. Promotion & Advertisement

5. Physical Evidence

6. People

7. Process

and explains the H&M marketing strategy.


H&M PRODUCT STRATEGY

● H&M is one of the most trusted apparel brands and has a


minimum of two thousand, seven hundred and eighty six
merchandises under its portfolio.

● The core range of products under this fashion brand includes


accessories and clothing like sleeved jersey dresses, basic
jumpers, vests, cardigans, pants, jeans, fashion shirts,
undergarments, jackets, jewelry, shoes, purses and T-shirts.
● The focus of the brand has been on quality as well as latest
fashion and that too at reasonable prices and hence they are
able to launch newer product lines at regular intervals.

● At least twenty five percent of the company’s stock includes


fast-fashion products and the newer generation of teens find
them to be reasonably priced as well as trendy and chic.

● Hence, they appeal to the young segment and result in higher


sales of products.

● A special team of designers designs all the products of the


company. Some of their famous designers are Isabel Marant,
Mathew Williamson and Jimmy Choo.
H&M PRICING STRATEGY

● H&M product prices are comparatively lower than any other


brand Like ZARA and GAP as a part of its marketing mix
pricing strategy. Due to its lower cost of manufacturing and
transportation.

● Also H&M offer more variety of products. On an


average H&M products are prices at $25 whereas that of Zara
are $45.

● High quality and considerably lower prices attract the youth


and hence leads to increase in sales for the company.
H&M PLACE AND DISTRIBUTION STRATEGY

● H&M sells its products through its exclusive stores located in


major cities across the globe (4135 stores).

● In some countries due to regulatory norms, H&M offers its


products through franchising partners.

● It also offers its products through online stores from where the
customer can choose from the list of available products and
purchase them through online payment. The products are
delivered at your stated address.

● Cheap Monday is sold through selected retailers worldwide and


through standalone stores including its flagship store in London.
● The products are manufactured in countries where cheap
labor is available in order to reduce costs.

● The clothes are designed by H&M and its other brands


according to segment they are targeting.

● H&M has developed an excellent supply chain over the


years. The delivery time is instant and the transportation
costs are kept at a minimum.

● The manufactured clothes are transported to the warehouse


from where they are distributed to various stores.
H&M PROMOTIONAL AND ADVERTISING
STRATEGY

• The promotional and advertising strategy in the H&M


marketing strategy is as follows:

• Since H&M group has a wide range of product portfolio


catering to different segments, it uses multi-channel
promotional strategy in its marketing mix.

• TV advertisements: H&M comes with creative ads which


focus on its latest innovative designs. Each brand handles its own
marketing decisions. The ads are telecasted at regular intervals and
on channels mainly watched by youth, to increase its awareness.

• YouTube: H&M has its own YouTube channel where it comes up


with unique ad campaigns to engage with the customers.
Digital Marketing: It indulges in excessive search engine marketing
and social media marketing to convert the potential buyers into
consumers.

• Promo codes and discounts: Promo codes and discounts are offered
during the end of season sale. The discounts are offered on both online
and retail stores.

• PR: Parineeti Chopra opened the first H&M outlet in India. Such
stunts generate quick publicity for the company.

• Sponsorships: H&M signed deal with The Weeknd, sponsors


Caitlyn Jenner, sponsors Musee Des Arts Decoratifs, Creative
collaborations with high end designers and style icons, Collaborations
with pop stars and sport stars

• CSR: Water, Planet, Education, Equality


H&M’s PEOPLE

● The employees at H&M are trained well at every level. The


work culture is very modern and employees are on a rotation
basis at every department and are motivated to innovate and
come up with the best clothing wear.

● H&M also tie up with many clothing designers throughout


the world to make latest trends in fashion.

● Employees come from diverse backgrounds having special


skills. Personal and Professional development of employees
is highly promoted.
H&M’s PHYSICAL EVIDENCES

● H&M stores are appropriately lit with great ambience and


humble staff. The apparel is arranged to have a decent look
which appeals to the customers.

● The merchandise is of excellent quality and latest trends.


H&M is diversifying its portfolio and entering into more
international markets. To create a Buzz in the market, it
engages in PR activities.

● For example, celebrities were invited during its launch which


created a Buzz in the market. User stories and
recommendations are always welcomed by the brand which
also helps in customer engagement with the brand.
H&M’s PROCESS

● High importance is given to customer relationship management.

● Employees are trained to retain highly profitable customers by


giving them better service and offers.

● In case of any complaints the staff at H&M puts in every effort to


resolve them at the earliest. There is a customer care number
through which the customer queries are resolved.

● Staff at H&M outlets help the customers in selecting the best


merchandise for them. Thus the service and delivery time is very
quick thus gaining satisfied customers.
REFERENCES

1. https://www.mbaskool.com/marketing-mix/services/16924-h-and-m.html

2. https://www.google.com/url?sa=t&source=web&rct=j&url=https://www2.hm.c
om/en_in/index.html&ved=2ahUKEwi3krWHtOnwAhUFGqYKHUK7DoYQF
jAYegQIMxAC&usg=AOvVaw1CXgEvKUSg04AHNny1poVG

3. https://www.google.com/url?sa=t&source=web&rct=j&url=https://en.m.wikipe
dia.org/wiki/H%2526M&ved=2ahUKEwi3krWHtOnwAhUFGqYKHUK7DoY
QFjAkegQIORAC&usg=AOvVaw0DH3Syd6gPSChVGPfCbNk-

4. https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.crunch
base.com/organization/h-m-clothing-company&ved=2ahUKEwi3krWHtOnwA
hUFGqYKHUK7DoYQFjAnegQIMRAC&usg=AOvVaw1DpbfyE3vlJWn6gzP
yPNwy
THANK YOU

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