Miss
Executive summary
H&M has more than 2000 stores in approximately 40 countries. The management philosophies of H&M are ‘Fashion and a quality at the best price and rapid expansion’. The powerful supply chain management is an important factor for its success. It has designed an efficient supply chain in Asia and quick response supply chain in Europe to control production. The sales are increased through IT systems, which control these two supply chains stably with fashion design. H&M is regarded as a typical ‘McFashion business’, which is popular by fashion design, good quality and low price in the worldwide. Internal designers undertake its design, and the entire production process is outsourced, mostly to Asia. Meanwhile, H&M is not only an importer but also a wholesaler and a retailer. Recently, H&M and Inditex (parent company of ZARA) have become top two biggest retailers in the world.
Introduction
H&M is known for fast-fashion clothing offerings for women, men, teenagers and children, and with Zara, both are successful clothes brands that combine perfectly lower price with fashion design. Zara’s goodwill has widely been achieved by its fast supply chain, and H&M is successful by means a unique two-supply chain management. The prices of H&M’s clothes are lower than major brands, but the benefits are higher. When the economy was down, most clothes companies struggled, but H&M saw opportunities to expand its retail stores worldwide. During 2011, H&M has opened approximately 260 new stores. One-day turnover of a Shanghai store has been over two hundred thousands pounds. To dominate the market fast, H&M created slightly higher prices, modern fashion, and city style brands – Collection of Style (COS). COS adopts seasonal design cycle, it is different from H&M’s two to three week design cycle, and COS cloths are more elegant than H&M. Furthermore, H&M has claimed that it will announce a new top brand –‘&Other Stories’, the products of this brand are planned to
H&M has more than 2000 stores in approximately 40 countries. The management philosophies of H&M are ‘Fashion and a quality at the best price and rapid expansion’. The powerful supply chain management is an important factor for its success. It has designed an efficient supply chain in Asia and quick response supply chain in Europe to control production. The sales are increased through IT systems, which control these two supply chains stably with fashion design. H&M is regarded as a typical ‘McFashion business’, which is popular by fashion design, good quality and low price in the worldwide. Internal designers undertake its design, and the entire production process is outsourced, mostly to Asia. Meanwhile, H&M is not only an importer but also a wholesaler and a retailer. Recently, H&M and Inditex (parent company of ZARA) have become top two biggest retailers in the world.
Introduction
H&M is known for fast-fashion clothing offerings for women, men, teenagers and children, and with Zara, both are successful clothes brands that combine perfectly lower price with fashion design. Zara’s goodwill has widely been achieved by its fast supply chain, and H&M is successful by means a unique two-supply chain management. The prices of H&M’s clothes are lower than major brands, but the benefits are higher. When the economy was down, most clothes companies struggled, but H&M saw opportunities to expand its retail stores worldwide. During 2011, H&M has opened approximately 260 new stores. One-day turnover of a Shanghai store has been over two hundred thousands pounds. To dominate the market fast, H&M created slightly higher prices, modern fashion, and city style brands – Collection of Style (COS). COS adopts seasonal design cycle, it is different from H&M’s two to three week design cycle, and COS cloths are more elegant than H&M. Furthermore, H&M has claimed that it will announce a new top brand –‘&Other Stories’, the products of this brand are planned to