Our previous paper had concentrated its analysis on H&M with the implementation and subsequent consequences of the square model. We thereafter discovered that this company has created a solid foundation for a success story and this in turn provides a very green picture to the business world especially the H&M sectors. In this upcoming paper, we will be delving into more details by trying to investigate why, how and through what means has this company managed to build such a strong brand image. We will also provide an analysis of H&M using the triangle model. The aim is that this triangle model, will uncover all the hidden stories with respect to the success of H&M.
[...] Analysis of H&M For high-volume fashion basics and children‘s wear it is clearly advantageous to be able to place orders far in advance. Trendier garments in smaller volumes require considerably shorter lead times. We need to be able to get supplementary orders out into the stores within just a few weeks. We aim to cut lead times further by developing our advanced planning. The later an order can be placed, the better becomes the precision and the greater the flexibility allowing stores to be restocked quickly with the best-selling goods. [...]
[...] H&M only designs and sells the clothes, but doesn‘t produce them. H&M doesn‘t own any fabrics either, and the production is done by about 700 independent suppliers. Using suppliers instead of own factories and leasing instead of owning real estates keep balance sheet light and set free the capital that it uses to growth. Risk management Fashion risk H&M is a textile company that aims to offer their customer chic clothing at relatively low price. Like José María Castellano, Spanish rival Inditex‘s former vice-president used to say: fashion industry always faces the risk of how well the public accepts its collections,‖4 people might love their lines at this moment and forget completely about that in the next. [...]
[...] Emphasis has been placed on educating women in matters such as labour legislation and equal opportunity and information about how to protect them against HIV/AIDS since The factory workers there are often young women from rural areas.10 Forecast Knowing and analyzing the market Before analyzing H&M from an internal point of view we want to analyze what are the predictions and expectations from the market. Of course, we know that it is not covered by our ―Financial accounting‖ course but if we want to make some kind of prediction afterwards we need to know what the general trends of the market are. [...]
[...] R even u e eu H&M Countries Number of countries C ou n tries 25 S tores Year R even u e eu Number of stores Num ber of stores C ou n tries 20 S tores Year R even u e eu Revenue (meur) H&M's revenue m EUR 2002 C ou n tries 14 S tores Year Analysis of H&M Business concept H&M's business concept In the following we want to show an excerpt of how the company H&M itself describes their values and strategy: Our business concept is to give the customer unbeatable value by offering fashion and quality at the best price.1 To be sure we can offer the latest fashions we have a design and buying department that creates our clothing collections. [...]
[...] Asian Development One of the objectives of H&M is to penetrate the Asian market. If H&M manages to enter in this market (we assumed before that this market should be in the growth stage) they will reinforce their 13 http://cnbceb.com/2006/09/01/the-shock/ Analysis of H&M worldwide position. Indeed, they can take the liquidity they get from the European market to finance their growth in Asia. H&M will open its first store in Japan in 2008. Elsewhere in Asia, H&M plans to open its first stores in China in 2007. [...]
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