H&M Entering Australia
Executive Summary
Table of Contents
Introduction –
Hennes and Mauritz (H&M) was first established in 1947 and have since expanded internationally and currently operate in 34 countries (H&M, 2009). As H&M continues to expand every year, the following report has chosen Australia as the new market, where analysis has been conducted to provide H&M with recommendations of which market entry method they should adopt and the threats and issues they must overcome to be able to succeed.
1.0 - Country Analysis – Australia
For the purpose of this report H&M (Hennes & Mauritz) has chosen Australia as the foreign country in which they wish to enter and introduce their products. Australia is the largest island, however, is also the smallest continent in the world which is situated below South East Asia (Department of Immigration and Citizenship, 2009). Being the sixth largest nation on earth it also consists of six states and two territories with the lowest population density per square metre (REFERENCE).
As it is practically impossible for H&M to enter the whole Australian market simultaneously, H&M has, therefore, chosen Melbourne as the first Australian state they wish to enter.
There are many reasons for choosing Australia and Melbourne in particular including:
• Melbourne is the second largest capital city in Australia with a population of 3,634,200 (REFERENCE).
• Melbourne is renowned as the fashion capital of Australia, where the Melbourne Spring Fashion Week (MSFW) is one of the largest and most popular consumer fashion events in Australia (City of Melbourne, 2009). This may then make it easier for H&M to launch their products and also obtain brand awareness, as Melbournians are relatively ‘fashion conscious’.
• New business opportunity, since 2006 there has been a 15% growth in the segment where young female consumers are demanding for low priced yet high quality and fashionable apparel (Euromonitor, 2009).
• Australia has a similar
Table of Contents
Introduction –
Hennes and Mauritz (H&M) was first established in 1947 and have since expanded internationally and currently operate in 34 countries (H&M, 2009). As H&M continues to expand every year, the following report has chosen Australia as the new market, where analysis has been conducted to provide H&M with recommendations of which market entry method they should adopt and the threats and issues they must overcome to be able to succeed.
1.0 - Country Analysis – Australia
For the purpose of this report H&M (Hennes & Mauritz) has chosen Australia as the foreign country in which they wish to enter and introduce their products. Australia is the largest island, however, is also the smallest continent in the world which is situated below South East Asia (Department of Immigration and Citizenship, 2009). Being the sixth largest nation on earth it also consists of six states and two territories with the lowest population density per square metre (REFERENCE).
As it is practically impossible for H&M to enter the whole Australian market simultaneously, H&M has, therefore, chosen Melbourne as the first Australian state they wish to enter.
There are many reasons for choosing Australia and Melbourne in particular including:
• Melbourne is the second largest capital city in Australia with a population of 3,634,200 (REFERENCE).
• Melbourne is renowned as the fashion capital of Australia, where the Melbourne Spring Fashion Week (MSFW) is one of the largest and most popular consumer fashion events in Australia (City of Melbourne, 2009). This may then make it easier for H&M to launch their products and also obtain brand awareness, as Melbournians are relatively ‘fashion conscious’.
• New business opportunity, since 2006 there has been a 15% growth in the segment where young female consumers are demanding for low priced yet high quality and fashionable apparel (Euromonitor, 2009).
• Australia has a similar