Mister

Paper 1

International Marketing -HT12

SIM012

Teacher: Ulf Sternhufvud

Jonas Garmarp (S092166)

Wenfei Dong (S124655)

Zibo Cheng (S124658)

Zhenya Ping (S124651)

Jiaju Zhang (S124661)

Table of Contents

Introduction2

SWOT Analysis3

PROBLEM-14

The management problem of H&M in China4

PROBLEM-25

H&M has no high brand loyalty in China.5

PROBLEM-36

H&M lacks of brand awareness in China6

PROBLEM-47

Different wearing habits between China and Europe7

Bibliography8

Introduction

The company we have chosen to study for this task is the Swedish company H&M (Hennes & Mauritz). Today H&M has about 2700 stores in 48 markets and has expanded enormously the last decade. The business idea of H&M is to offer fashion and quality to the best price. To achieve the idea of best price H&M tries to achieve:

*Few middlemen’s hands

*The depth and broad knowledge about design, fashion and textile

*To buy the right product from the right market

*To be aware of cost in all stages

H&M wants to offer a well balanced mix of modern basic products, current fashion and the latest trends. H&M believes that the stores and shop windows are in the centre of the business, the most important communication channel for new and existing customers.

When H&M wants to establish a store in a new location they choose their premises by the location rather than what it looks like. They have an interior decorating design program to suit all kinds of premises. All stores are unique but you can always tell that it is an H&M store.

Since the aim of the course is International Marketing we have in our scenario decided that H&M will expand in China where they today have just a few stores in the largest cities. Since the aspect is international marketing we will concentrate on which possible problems H&M will and could encounter on a market like China, seen from a cultural...