H&M is an abbreviation for Hennes and Mauritz. Hennes was the name of the first store. Indeed, Erling Persson, a Swedish vendor of pens, made a trip to the United States and discovered a new type of store that conducted big sales by selling clothes at reduced prices. Back in Sweden, he decided to build a store of this kind which he named Hennes.
Hennes meaning ‘hers' or ‘for her' in Swedish, was exclusively reserved for women. His initial concept was ‘selling women's fashion and quality at unbeatable prices'. At the time, selling luxury products at reasonable prices was an innovative concept. During the 50s and the 60s, the store enjoyed a triumph and development in Sweden. Erling Persson, with the enormous success of his store, then wished to settle in Stockholm.
It acquired a store Mauritz Widforss located in central Stockholm in 1968 which before that specialized in weapons and hunting gear. It also expanded its range and the store was renamed ‘Hennes & Mauritz' (H&M). It has been selling clothing for women and men ever since. In the 70s, the company expanded its range of clothing by adding a department for children and young adults.
Then, from 1982, the company experienced a real expansion.
Erling Persson, the CEO, gave away the company to his son Stefan Persson in 1990. In 1998, he became the Chairman of the board and Rolf Eriksen, CEO of H&M in 2000. Erling Persson died in 2002 and left behind a large textile group. Women are an important target in fashion. For many women, shopping is a pleasure, a hobby and they spend time on it more frequently and more often than men. Indeed, in 2002, girls aged 19 to 25 spent an average 843 euros per year against 695 euros by boys.
At H&M, the range of clothing for women is often the most sophisticated and most developed. Many collections are on display ranging from traditional clothing to those that are more often used as casual wear, through collections that are more ‘sporty'. The Group has also created special collections dedicated to pregnant women with large sizes. The Brand therefore leaves nothing aside and tries to target women of all ages.
All collections are also accompanied by multiple accessories (earrings, bracelets, shoes).
Moreover, when the brand rents a site too small to display all the collections, it focuses specifically on women's collections, demonstrating the importance it attaches to women.
H&M also knows that adolescents attach more importance to their style and thus spend a considerable amount of money on clothes. Indeed, the 12-24 year olds come under the class that spends the most amount of money on clothes. H&M has therefore sought to target the class which is most able to spend money on clothes.
The company multiplies its collections for the youth with flashy colors and adapts quickly to fashion because young people are those who adopt the latest looks faster. Much of its communication is also dedicated to youth as evidenced by the kit ‘H&M Fashion Stuff' in the popular video game ‘The Sims'.
Tags: Hennes and Mauritz, Erling Persson, traditional clothing, Mauritz Widforss
[...] An international brand H&M has very quickly established in other countries and the international markets have contributed greatly to the development of H&M. H&M began its international expansion through Scandinavia where the first store abroad was established in 1964 in Norway and Denmark in 1967. Then, H&M invaded England (1978), Germany (1980), the Netherlands and Belgium (1992), Austria (1994), Luxembourg and Finland (1996). H&M arrived in France only in 1998 and 2000 in the US and Spain. In 2003, H&M invaded Poland, the Czech Republic, Portugal and Italy. [...]
[...] H&M remains mainly in Sweden to lead the direction of strategy of the group. Regarding manufacturing, H&M outsources to firms in Eastern Europe and Asia. The company thus has no manufacturing facility. There are 15 offices and 21 production offices around the world: 10 in Europe in Asia and 1 in Africa. H&M has 70,000 employees and approximately 900 suppliers. To account for the organization within we will follow the path of the product from its conception to its arrival in stores. [...]
[...] Chart No And when asked to describe H&M in 2 words, they often use synonymous expressions of business concepts, as shown in the formulas such that nice time shopping without breaking the bank too' , or taste and economy'. They put forward mainly the fashion and the price of the brand, thus showing that H&M has succeeded in exporting its flagship concept. The success of this export is mainly due to an alignment in strategy and communications which are primarily through advertising. [...]
[...] Chart No A different approach of country by country Although H&M has an expansion strategy which is very organized, the establishments within each country has not always been successful. In some countries, like the Nordic countries, the Group has not had any problems to locate and has immediately experienced an explosive expansion. Other countries, like France, the United States and Italy have been more hostile to the establishment of H&M in their countries. France has long been hostile to the establishment of the group in its territory. [...]
[...] Part 3 The strategies implemented internationally We noted earlier that the production of H&M was designed for international countries. To sell as much abroad, H&M uses strategies that are effective and personal. According to its official website, its strategy combines growth, profitability and control. In this section we will develop all the strategies implemented by H&M and represent the key to its international success. The conquest of the countries A conquest from North to South H&M has an expansion strategy which is very personal. [...]
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