BRAND STUDY

Submitted to: Submitted by:

Arka Mukherjee
Mr. Joseph Reggy Kumaresh Roy
Prafull Sundriyal
Sreejith Raj
Tulasi Udaya KIran
 THE HISTORY OF H&M GROUP
Hennes & Mauritz AB is a Swedish multinational clothing-retail company known for its fast-fashion
clothing for men, women, teenagers and children.
H&M and its associated companies operate in 72 countries with over 4,958 stores, 49 online markets
and 177,000 colleagues.
It is the second-largest global clothing retailer, just behind Spain-based Inditex (Parent company of
Zara).
In India H&M opened its first store at Select citywalk, Delhi inaugurated on 2 October 2015.B
Brand value is USD 15.9 Billion.
 THE HISTORY OF H&M GROUP
Founder- Erling Persson
Year- 1947
Place- Västerås, Sweden

The shop, called Hennes (Swedish for "hers"), exclusively sold women's clothing.
 A store was opened in Norway in 1964.
 In 1968, Persson acquired the hunting apparel retailer Mauritz Widforss, which led to
the inclusion of a menswear collection in the product range and the name change to
Hennes & Mauritz.
The company was listed on the Stockholm Stock Exchange in 1974.
Shortly after, in 1976, the first store outside Scandinavia opened in London.
H&M continued to expand in Europe, and began to retail online in 1998, when it was
able to buy the domain hm.com
The opening of the first U.S. store on 31 March 2000, on Fifth Avenue in New York
marked the start of the expansion outside of Europe.
 COMPANY OVERVIEW
Traded as H&M AB

Industry Retail

Predecessor Hennes

Founded 1947; 72 years ago (as Hennes) Vasteras, Sweden

Founder Erling Persson

Headquarters Stockholm, Sweden

Area served Worldwide
Key people Stefan Persson (Chairman) & Karl-Johan Persson (President and CEO)

Products Clothing, accessories, Home finishing

Owner Stefan Persson (32%)

Number of employees 177,000 (September 2019)

Subsidiaries Monki, Weekday, Cheap Monday, COS, Other Stories, Afound, Arket

Website hm.com
 BRAND UNDER THE H&M GROUP

FOUNDED 2007 FOUNDED 2002 FOUNDED 2006 FOUNDED 2009

ONLINE 22 ONLINE 19 ONLINE 19 ONLINE 40

MARKETS MARKETS MARKETS MARKETS

STORES 274 STORES 44 STORES 127 STORES 373

COUNTRIES 12 COUNTRIES 17 COUNTRIES 50
COUNTRIES 42
SEGMENT WOMEN,
SEGMENT WOMEN, MEN,ACC SEGMENT YOUNG SEGMENT HOME
MEN,KIDS ESORRIES WOMEN DÉCOR

BASED LONDON BASED SWEDISH BASED SWEDISH BASED SWEDEN

 BRAND UNDER THE H&M GROUP

FOUNDED 2013 FOUNDED 2017 FOUNDED 2018

ONLINE 16 ONLINE 19 ONLINE 1

MARKETS MARKETS MARKETS
STORES 19
STORES 70 STORES 1
COUNTRIES 7
COUNTRIES 19 COUNTRIES 6

SEGMENT men,
SEGMENT WOMEN,ACC women, SEGMENT WOMEN, MEN,
ESSORIES,HAI children and KIDS
RCARE the home
BASED SWEDEN BASED LONDON BASED SWEDEN
H & M OUTLET (Phoenix Mall) Bangalore
WOMEN’S SECTION
TYPES OF PRODUCT CATEGORIES OF MANUFACTUR PRODUCT TYPE PRICE POINTS
PRODUCT ING COUNTRY AND MATERIAL (IN INDIAN
CURRENCY)

TOP’s Full sleeve, Bangladesh 100% cotton 799-1699

full sleeve kurti, China 94% cotton-6%
Sleeveless kurti, Indonesia viscose
Up sleeve Top Combodia 100% viscose
Tank top Elastant is also
Strap top added in some.
Jump suit

SKIRT’s short skirt, Bangladesh 60-40% polycotton 1299-2299

Hot skirt China 100% Polyester
Denim skirt Vietnam

SHORT’S Hot short Bangladesh 80% cotton-15% 699-1999

Denim short Indonesia polyester –
China 5% elastane
TYPES OF PRODUCT CATEGORIES OF PRODUCT MANUFACTURING PRODUCT TYPE PRICE POINTS
COUNTRY AND MATERIAL (IN INDIAN
CURRENCY)

Denim Jeans Ripped high waist India 92% cotton-8% 1399-3499

Tight fit Bangladesh elastane
Torn jeans Combodia
Turkey
China
Shirts Blouse shirt Bangladesh 100% cotton 749-2699
Full sleeve shirt China
Polo shirt Myanmar
Party wear Turkey
Trouser Denim trouser Bangladesh 70% cotton+28% 699-1999
Loose Trouser China polyester+2%
Party India elastane

Jackets Blazer China 80% cotton-20% 2299-3699

Casual Blazer Bangladesh acrylic
Hoddie Myanmar
WOMEN ACCESSORIES
TYPES OF PRODUCT MANUFACTURIN PRODUCT TYPE PRICE POINTS (IN
G COUNTRY AND MATERIAL INDIAN CURRENCY)

Bags China Leather 1499-2699

Turkey

Hats and Bennie China 53% acrylic 799

Indonesia 47% wool

Sunglasses China Plastic 699-1299

Myanmar Fiber

Shoes China 1499-2299

(Sneakers & flip flops) Turkey 399-1299

Bracelets China - 799

India

Anklets China - 999

India

Earrings China - 799-999

India

Belts China 699-799

Cambodia

Key Chain China - 399

India

Necklace China - 799-1299

Indonesia
KIDS WEAR (GIRLS)
PRODUCT MANUFACTURING COUNTRY PRODUCT TYPE AND MATERIAL PRICE RANGE (Rs.)

GIRLS(NEWBORN-14)

Tank Tops Bangladesh 100% cotton 599-999

China

Jumper /Sweater Bangladesh 53% acrylic 29% polyamide 10% 1299

China polyester 5% wool 3% elastane
Turkey

Tops Bangladesh 100% cotton 499-1699

China

Jacket Bangladesh 80% cotton 20% viscose 2299

China

ACCESSORIES
Hair band China - 349-599

Necklace China - 299-499

Hand bag China - 399-699

Gift Box China - 499-999

Sunglasses China - 499-1299

MATERNITY SECTION
 PRODUCT MANUFACTURING PRODUCT TYPE AND PRICE RANGE (Rs.)
COUNTRY MATERIAL
MATERNITY WEAR FOR MOTHER’S
Tops Bangladesh 100% cotton 699-1499
China
Strap top Bangladesh 100% cotton 1799-1999
China
Indonesia
Shorts Bangladesh 90% cotton-10% elastane 399-1499
China
Blouse Indonesia 100% cotton 799-1299
Bangladesh
Bra Bangladesh 85% polyamide-15% 799-1499
elastane
Waist coat Bangladesh 95% cotton-5% elastane 999-1299

Tights (semi skinny) Bangladesh 88% nylon 12% elastane 699

Dress Bangladesh 80% cotton-12 % polyester 8 999-1399

% elastane

Legging Bangladesh 48% Cotton 48%Polyester 699

4% elastane
MEN’S SECTION
TYPE OF PRODUCTS CATEGORY OF PRODUCTS MANUFATURING COUNTRY PRODUCTS TYPE AND MATERIAL PRICE POINT(IN INDIAN CURRENCY)

SHIRTS CASUAL BANGLADESH 100% Cotton

FORMAL INDIA 1499-2699
INDONESIA

T-SHIRTS(SLIM FIT) PLAIN CHINA 100% Cotton, 799-2699

PRINTED TURKEY 53% Viscose 47% Cotton
POLO SHIRT BANGLADESH
TOP INDIA
TANK TOP

BLAZERS SLIM FIT BANGLADESH 100% Polyester(lining), 3999-5999

SKINNY FIT VIETNAM 85% Cotton
15% Polyester

JUMPERS/SWEATERS V –NECK BANGLADESH 100% Cotton 1299-2999

POLO-NECK CAMBODIA
CHINA
MYANMAR

JACKETS/HOODIES OUTDOOR MYANMAR 85% Polyester 10% Viscose 5% Cotton 1499-4499

HOOD JACKET CHINA

TROUSERS COTTON CHINA 100% Cotton, 1499-2999

DENIM INDIA 95% Cotton 5% Elastane(Denim),
FORMAL BANGLADESH 98% Cotton 2% Elastane(Formal)
MYANMAR

SHORTS THREE QUATER BANGLADESH 100% cotton 999-1999

BERMUDA CHINA
SWIMWEAR

CARDIGAN ZIPPED MYANMAR 76% Cotton 23 % Polyester 1% Elastane 1299-2299

MEN’S ACCESSORIES
PRODUCT MANUFACTURING COUNTRY PRODUCT TYPE AND PRICE POINT(IN INDIAN
MATERIAL CURRENCY)

Formal Shoes China Leather 1499-2599

Belts/Bags China, Romania Genuine Leather, 999-2699

100% polyester

Bow Tie/Tie China 100% polyester 799-999

Scarf China 100% Acrylic, 699-1499

Bangladesh 65% Polyester 35%
Viscose(checked)

Caps/peaked/Hats & Brim China 100% Cotton 399-1499

India

Sunglasses - 50% Metal,50% Plastic 699-1299

KIDS WEAR (BOYS)
PRODUCT MANUFACTURING COUNTRY PRODUCT TYPE AND PRICE RANGE (Rs.)
MATERIAL

BOYS(NEWBORN 12)
Blazer(MINI) Bangladesh 98% cotton 999-1999
Indonesia 2% elastane
India
Shirts Bangladesh 98%cotton 2% elastane 999-1499
Turkey Corduroy
China
Trouser Bangladesh 71% cotton 20% polyester 9% elastane 799-1699
Indonesia
China
Ramper Bangladesh 100% cotton 999-1299
China

Body/Set Bangladesh 95 % polyester 5% elastane 799-1499

India
China

ACCESSORIES
Shoes China Leather 499-1499
Bangladesh

Bags China Polyster 999-1499

Belts China Leather 399-699

Hats & caps China 100% cotton 249-459

H & M SPORT’S WEAR
(MEN & WOMEN)
TYPE OF PRODUCTS MANUFATURING COUNTRY PRODUCTS TYPE AND MATERIAL PRICE POINT(IN INDIAN
CURRENCY)
Running Bangladesh 68% Polyamide-32% polyester 899-1499
Tops China

Running Bangladesh 86% polyester-14% elastane 1499-1699

Trousers CHina

Training China 93% polyester-7% elastane 549-1499

Tops Indonesia
Bangladesh
Training China 82% nylon-18% elastane 899-1699
Trousers Bangadesh

Running Jacket China 100% polyester 899-3499

Indonesia
H&M special Sport China 60% polyester -40% cotton 999-2499
Turkey

Training Hoodie China 60% cotton -32% polyester -8% 2699-3499

Indonesia elastane

Swimmer Bottoms Bangladesh 94% polyester-6% elastane 799-999

Combodia
 H&M Worldwide Distribution

H&M Distribution

•No of Location: 4958 (as of

28 Feburary 2019)
H&M store at the Pavilions Shopping H&M Asia flagship store at
Centre, Birmingham, UK Causeway Bay, Hong Kong

H&M Melbourne
 Sales Revenue
"If we continue to do well, we will enter smaller cities in India like we have done in oth
After H&M opened its first store in India in October 2015 and turned profitable in its first year India unit posted
sales of Rs.194 crore during the year ended March 2016 and a net profit of Rs.1.4 crore.

Comparatively, larger Spanish fast fashion rival Zara, which started in India in 2010, had a turnover of Rs.149 crore
during its first year of operations and a profit of Rs. 22.5 crore.

The Sweden’s largest fashion retailer introduced its aggressive global pricing strategy in India to compete Zara
Slashes price by 10-15 per cent, according to sources.

H&M sales double as pricing strategy pays off.

Opening stores in metros and tier-2 cities, continues to drive strong growth,” said Janne
Einola, country manager, H&M India.

 Rose sharply to about Rs 640 crore with a net profit of Rs 15 crore during 2016-17 through 15 stores, many of
them barely a few months old then.

in India grew 95.5% for the year ended November 2017 to Rs 956.24 crore expansion of stores – from 10 to 27
during the year.

H&M plans to enter the Indian online market in 2018.

 Sales Revenue

Grew 29% to ₹1,108.2 crore in the year ended 30 November, 2018

Global online sales jumped 22% during the year, Online sales now account for 14.5% of the
group’s total sales.

Overall, worldwide H&M posted a 5% rise in net sales to 210,400 million Swedish kronor.

“Ithas been a challenging year for H&M group and the industry
but after a difficult first half, there are signs the company’s
transformation efforts are beginning to take effect. Improved
collections generated better full-price sales and lower markdowns
towards the end of the year..." Karl-Johan Persson, CEO, said in a statement.
 Sales Revenue

Market Net Sales(2018) Net Sales (2017) New stores No. of stores 30
SEK m SEK m (NET) During Nov 2018 SEK m -Swedish Krona million
this Year

Germany 32,367 30,959 5 468

USA 24,798 26,330 42 578

UK 13,760 12,622 12 304

The clash of the retail
FRANCE 11,311 11,833 -3 237 giants continue. As of
2019, H&M’s brand
CHINA 10,743 9,480 24 530
value is approximately
INDIA 1,408 1,092 12 39 $15.9bn, a 16% drop
from $19bn in
2018. Zara is currently
TOTAL(All over 210,400 200,004 229 4968
sitting at a brand
World)
value of $18.4bn.
 Share Price

H&M is listed on these stock exchange

 Share Price

Shoppers increasingly buy its $7 T-shirts online.

Sep 24 2018 Article says Unethical manufacturing/ supply chain forcing many
employees to work excessive hours, factories in Bulgaria, Turkey, India and
Cambodia, campaigners said none of the workers earned anything near a so-called
living wage that would allow them to cover their families’ basic needs.

Racist advertisement (coolest monkey in the jungle 2018).

Perception of high fashion brand doesn’t resonate with target customers.

 Share Price

The Stockholm Stock Exchange operating under the name Nasdaq Stockholm, is a stock exchange located in
Frihamnen, Stockholm, Sweden.
 Share Price
The Better Alternative Trading System (BATS) is a U.S.-based stock exchange offering investors equities,
options, and foreign exchange trading services. The BATS operates in both the United States and Europe.
BRAND VALUE-$ 18.4 BILLION USD 7.0 BILLION USD
BRAND VALUE-$

1920 OUTLETS IN 58 COUNTRIES

2259 OUTLETS IN 96 COUNTRIES
BRAND VALUE-$ 1.2 BILLION USD 2.23 BILLION USD
BRAND VALUE-$

933 OUTLETS 4785 OUTLETS IN 136

COUNTRIES

4 BILLION USD
BRAND VALUE-$ 6.1 BILLION USD
BRAND VALUE-$

1195 OUTLETS IN 60 COUNTRIES 1256 OUTLETS IN 41 COUNTRIES

16.6 BILLION USD

BRAND VALUE-$ 7.2 BILLION USD
BRAND VALUE-$

3688 OUTLETS IN 43 COUNTRIES 2456 OUTLETS IN 106

COUNTRIES

BRAND VALUE-$ 1.242 BILLION USD 3.0 BILLION USD

BRAND VALUE-$

1049 OUTLETS IN WHOLE COUNTRIES 1485 OUTLETS IN 66 COUNTRIES

4.8 BILLION USD

BRAND VALUE-$ 18.4 BILLION USD
BRAND VALUE-$

500 OUTLETS IN 58 COUNTRIES 460 OUTLETS IN 50 COUNTRIES

 COMPETITORS

 H&M, Zara and Uniqlo are three international clothing retailers with more than
1,000 stores each worldwide. The competitive companies target similar markets but
employ different strategies in their business models to manage the distribution of
product lines.

 Zara is the youngest of the trio, having begun in Spain in 1975. The company is
owned by textile giant Inditex. Zara’s ownership of its supply-chain steps allows for
more rapid product turnover; Zara can design a product and have it sold in stores a
month later and known for its fast fashion.

Uniqlo was purchased by Fast Retailing Co. in November 2005 and was originally
founded in 1949 in Japan. Its business model is based on that of The Gap.

These three clothing distributors have differing approaches to their ownership of

materials, sourcing of manufacturing and treatment of auxiliary brands.
Target Customers
Target Customers
 Target Customers

 In India, it has the image of being a foreign brand and

hence lot of upper middle class people also shop here.

Consumers who want to follow the trends without

investing a lot of money.

It’s collection is more focused on teens or young

professionals.
 H&M CSR POLICIES
CSR committee, has decided to focus its activities where it is able to create
maximum value. These focus areas In India are:
 Water & Sanitation: The Company would focus on raising awareness on water
conservation and providing access to water, sanitation and hygiene awareness.

 Education & Environment: Awareness around environment education with

special focus on reuse, reduce and recycle. Company will also focus on projects to
promote quality education.

 Empowerment & Livelihood: Empowerment of the youth, women and girls. CSR
activities in line with Government’s intent and which are important for society.
 VENDOR SELECTION AND IT’S CRITERIA

 A subsidiary process of supply chain and is the process of selecting a

supplier to acquire the necessary materials to support the outputs of
organisation based on the certain selection criteria.

 Develop and use by purchase department

 Vary between organizations

 Importance-
reduce supply chain costs
improve the quality and timeliness of items to company
VENDOR SELECTION AND IT’S CRITERIA
Common criteria of vendor selection process
• Delivery – an ability of the contractor to procure all required items
within desired delivery dates
• Quality of the procurement services – an ability of the contractor to
provide products with the expected quality
• Cost of the procurement services – a comparison of prices provided
by several contractors
• Past performance – records on the contractor’s procurement
activities undertaken in the past
• Risk- Financial stability of the supplier, market value.
• ETC….
 VENDOR SELECTION CRITERIA

A-QUALITY (30)

B-DELIVERY LEAD TIME (10)

IF Y> 3.5 70%
C-JOB RESPONSIBILTY (20) X/100 Y/5
IFY<3.5
30%
D-COMPANY PROFILE (20)

E-COST (20)

X=A+B+C+D+E
 INDIAN VENDORS FOR H&M

SHAHI EXPORT QUANTUM KNITS INDIAN DESIGNS COTTON SHIVALIK

WORLD PRINTS LTD.
PVT.LTD EXPORTS PVT.LTD
VENDOR CERTIFICATION

Refrence- Shahi exports pvt ltd

 CONCLUSION

 In order to fulfill the needs of the customers, H&M launched EDLP (Every Day Low
Prices) products.

 In addition, they invited the top fashion designers in the industry such as Karl Lagerfeld
to be their partners for designing the new collection.

There are 2 things happening in the process which are psychological identification and
product price.

Stores are often Tidy, clean and easy to navigate.

Sustainable fashion is a long term way of looking at style for seasons to come.

Cotton
Recycled Polyester
Recycled Polyamide
Linen
 CONCLUSION

 Fitting and cashier usually have long

queues.

Sales staff is relatively less as compared to

the number of customers.

People buy from people. A customer

struggling to find the right cut or fit of jeans
needs help and advice.

If you look closely though, you will notice

that they use cheaper materials, not very high
quality fabrics.

H&M launch, sees fans queue

through the night to get their
hands on high fashion
collaboration in London
 REFERENCES
• https://sites.google.com/site/hmcompanywebsite/social
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• https://www.bloomberg.com/quote/HMB:SS
• https://en.wikipedia.org/wiki/Stockholm_Stock_Exchange
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• //economictimes.indiatimes.com/articleshow/58036933.cms?from=mdr&utm_source=contentofinterest&utm_medium=text&
utm_campaign=cppst
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• https://www.bloomberg.com/quote/HMB:SS
• https://www.marketscreener.com/HENNES-MAURITZ-6491104/company/
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• https://www.reuters.com/article/us-workers-garment-abuse/hm-accused-of-failing-to-ensure-fair-wages-for-global-factory-
workers-idUSKCN1M41GR
 REFERENCES
• https://www2.hm.com/en_in/women.html
• https://www2.hm.com/en_in/men.html
• https://www2.hm.com/en_in/kids.html
• https://www.google.co.in/search?q=WEEKDAY&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiL3-
zWgPLeAhULfisKHa8TCCsQ_AUIDygC&biw=1366&bih=608#imgrc=D5QAsuOFcyOegM
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N9nHpW4WxoxM%252C_&usg=AI4_-
kTXxSVpkJ1pmgOC8LH3_pgNsfhofQ&sa=X&ved=2ahUKEwj1p6nP8fHeAhVTXisKHT8KBFsQ9QEwAHoECAAQBA#im
gdii=CkA9kXwafsc0DM:&imgrc=LvdAmGu-Qc5FHM
• https://economictimes.indiatimes.com/magazines/panache/hm-to-launch-its-first-store-in-india-on-october-
2/articleshow/48882577.cms?from=mdr
THANK YOU