H&M in Japan

University of Teesside |

Expansion in Japan Of H&M

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[键入文档副标题] |

Tao Wen (k0161340)

2011-4-26

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Content

1. Details

2.1 Introduction of H&M

2.2 H&M in Japan

2. Market analysis

2.1. Cultural analysis in Japan

(Hofsted’s Dimension of Culture)

2.2. PEST analysis

2.3. Poter’s Diamond Mode

2.4. The Global Competitiveness Report 2010–2011

3. Business strategy

3.1. Market strategy

3.2. Market entry mode

4. Conclusion

1. Details

1.1 Introduction of H&M

From the beginning in a small town of Sweden, Hennes & Mauritz(H&M) has grown up into a prominent fashion retail clothing company worldwide. H&M has expanded substantially in recent years and it now has around 2,200 stores spread over 40 markets. Nowadays it has become top “fast fashion” clothing offering for woman, man, teenagers and children. In 1947, a Swedish woman Erling Persson was established the first store in a small town Västerås, Sweden. At the time it only sold women's clothing and was called Hennes, Swedish for "hers". Because of its proper concept “Fashion and quality at the best price” for customers, H&M sales including VAT increased by 77 percent and profit after tax by 102 percent In the past five years, from 2005 to 2010. Its collections are created centrally in H&M’s design and buying department. H&M does not own any factories, but instead has 16 production offices in Asia and Europe that work closely together with some 700 independent suppliers. All suppliers must comply with H&M’s quality standards. Good product quality is also ensured through continuous controls. (Source: H&M official website) That’s why it own top designer but control the selling price effectively.

2.2. H&M in Japan

Since the European market has saturating, H&M focus its view into Asia market. Already operate successfully in China. H&M has opened the first chain store in Tokyo, the third largest...