Strategic Management of H&M

( HENNES AND MAURITZ )

Presented By: Sana Mir
BBA-1F
 Introduction
 H & M Hennes & Mauritz (H&M) is a Swedish
multinational clothing-retail company, known for its
fast-fashion clothing for men, women, teenagers and
children.
 The clothing retailer H&M was founded in 1947, but
during the last decade the company has made it to
the top with $20.3 billion yearly sales. Forbes now lists
H&M in its brand value Top 100, along with Apple and
Coca-Cola.
 The company has a significant online presence, with
online shopping available in 33 countries.
 Vision and Mission
 Their vision is that all business operations shall be
run in a way that is economically, socially and
environmentally sustainable, they mean that the
needs of both present and future generations
must be fulfilled.
 H&M’s growth target is to increase the number
of stores by 10-15% per year and at the same
time increase sales in comparable units.
Managing The Production
 THE DESIGN PROCESS
H&M’s design department employs 160 in-house designers and 100 pattern makers, as well as several
design assistants and print designers. Working from our Head Office in Stockholm, they create H&M’s
wide-ranging and varied collections. The design process is about striking the right balance between
fashion, quality and the best price and it always involves sustainability awareness that means a strong
consideration for both people and the environment, all the way from the sketch book to the
customer.
 PLANNING AND BUYING
The right mix of modern basics, current fashion and the very latest trends. H&M always has the best
customer offering in every market, which means that each store has to stock the right pieces – a
varied range that inspires customers to both browse and shop.
 PRODUCTION PROCESS
H&M doesn’t own any factories, instead we work with around 820 independent suppliers – who are
close, long-term partners. They work with long-term partners and invest significant resources in our
sustainability work in the supply chain.
 LOGISTICS AND DISTRIBUTION
Efficient logistics and greener transport make sure the latest trends and the right basics are always
available in stores – at the best price and with minimum impact on the environment
 Business Strategies
 Sweden-based fast fashion chain H&M has kept prices low in
Europe despite higher cotton costs.
 A strategy which has paid off during downturn. Same-store
sales rose 2% in February.
 Their strategy of keeping prices low is gaining momentum,
and people are clearly shopping at H&M rather than at their
competitors.
 Produce cheap products of reasonable quality, inspired by
the latest trends.
 H&M is famous for offering chic, trendy styles with rapid
turnarounds - an epitome of the widely acknowledged and
appropriately named phenomenon that is 'fast fashion.
 H&M remains relevant in the fashion world by keeping
their markets engaged through Twitter, Facebook and
Instagram.
 Consumers are kept up to date with the trends, sales
and ideas on all three major social media platforms.
 H&M manufactures 80% of its retail inventory in advance
and introduces the remaining 20% based on the most
current market trends. The retail giant's ability to offer
affordably priced apparel is largely due to its strong
supplier relationships and its manufacturing strategies to
reduce lead times.
H&M'S SECRET TO AFFORADABLE AND
FASHIONABLE CLOTHING
 New clothes and accessories arrive to the stores every day and
H&M is capable of moving apparels from design to hanger in mere
20 days.
 To offer the consumers high fashion and quality at the best price,
H&M works with few middlemen. The company buys right items in
large volume from the right markets. The firm has a well-established
and efficient distribution channel and relies heavily on it to work
efficiently.
 Goods in Asia are transported by ocean. More than 90 percent of
all transports are done via ocean, rail or road. Air is used only in
exceptional cases when faster deliveries are required.
 As soon as a product is sold a request is sent for replenishment.
SWOT ANALYSIS
 Target Customers
 Fashionable and trendy customers
 Most popular segment: females 20-27 years old
 Kids/Teens
 Toddlers, Babies
 Females (15-40 years of age)
 Fashion For All
 H&M caters for the hottest trends to the very best in basics. H&M’s design team creates sustainable
fashion for all, always at the best price.
 1) Women
H&M’s fashion for women is the largest of the collections. It comprises everything from the latest must-haves
to updated fashion classics.

 2) Men
Men looking to create contemporary, flexible wardrobes should always find what they need at H&M.

 3) Kids
H&M Kids offers children everything from supercool jeans to pretty dresses, in sizes from baby to 14 years.

 4) H&M Home
H&M Home provides fashion for every room in the house.

 9) Sportswear
At the beginning of 2014, H&M launched a new, updated and extended sports concept available for
women, men and children.
 References
 file:///C:/Users/Hp/Desktop/Management%20principles/329259250-
h-m-pdf.pdf
 https://www.slideshare.net/MdRefatHossain/presentation-on-h-m-
marketing-analysis
 https://www.slideshare.net/jazminn25/hm-project
Thankyou!