H&M Marketing Strategy

H&M’s marketing strategy in China and UK

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Introduction: Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage [Reference- the Strategic Marketing Plan Audit 2008, Baker, Michael]. H & M Hennas & Maritz AB (operating as H&M ) is a Swedish retail-clothing company, known for its fast-fashion clothing offerings for women, men, teenagers and children. It has over 2,300 stores in 41 countries and as of 2011 employed around 87,000 people. The design team in the company's Sweden office controls the steps of production from merchandise planning to establishing specifications, and production is outsourced to approximately 800 factories in Europe and Asia. [Reference-"About H&M". HM.com.]. The branding consultancy Interbred ranked the company as the twenty-first most-valuable global brand in 2009 and 2010, making it the highest-ranked retailer in the survey. [Reference-2010 Ranking. Interbrand]

Analysis the difference by 4P

[Reference- ‘Basic Marketing’ by McCarthy in 1960]

Body paragraph 1---Price

a. Main idea --- the different price of H&M in China and UK.

b. Supporting ideas --- Though prices for international brands are the same in China as they are elsewhere in the world, the differences are the taxes, Per capita income and Exchange rate.

[Reference---International Monetary Fund (2010)]

For example, if the exchange rate between UK and China is 1:10, one cloth of H&M is 10 pounds in UK, so it will be 100RMB in china, but as can be seen above the UK Per capita income is much more high than China, so the price of H&M in UK is very cheap, and For china it’s expensive. And the pricing strategy of HM often use Loss leader that marketing academics have shown that retailers should think of both the direct and...