H&M SWOT
SWOT
Strengths:
Weaknesses:
Sales in January 2014 increase 15% in local currencies, compared to the same month in the previous year.
Clever Care labelling
Strong celebrity endorsements
Designer Collaborations
Clothing recycling scheme
Largest consumer of organic cotton
Benefits from economies of scale
Improved online experience
Heavy reliance on EU markets
Quality concerns
Store experience, sometimes lacking
Lack of click and collect
Gross Margin Decreasing
Does not own any factories
Only has transactional website in 9 countries
Opportunities:
Threats:
First store in India in 2013/14
Company opened 356 net stores globally in the year with plans to open a further 375 stores by the end of the coming year.
US and China biggest expansion plans in 2014-15
Australia early 2014, Philipines late 2014
South Africa new sourcing hub could be new retail destination also
New online markets
Sportswear – dresses the Swedish Olympics team in. Winter & Summer Olympics
Rising concern for environmental issues and H&M look to be at forefront
H&M Home Expansion
Independent Mens stores?
Flat like-for-likes for the year to 30 November 2013
Rapid expansion causing cash flow issues
Supermarket fashion
Target market struggling with finances
Increasing labour costs in manufacturing countries
Fluctuating raw material costs
Continued economic uncertainty in European markets
Transparency of suppliers
90% of products transported through Ocean
more than 20 country offices responsible for the various departments in each sales country.
Outsourced its product manufacturing to approximately 700 independent suppliers across the word for higher efficiency and synergies to cater its customer requirements
Political
AGAO duty free regulations in Ethiopia
Bangladesh political instability (80% of H&M products manufactured here)
Economical
Recession & economic uncertainty in Europe
Young people having less disposable income
Rising labour costs in
Strengths:
Weaknesses:
Sales in January 2014 increase 15% in local currencies, compared to the same month in the previous year.
Clever Care labelling
Strong celebrity endorsements
Designer Collaborations
Clothing recycling scheme
Largest consumer of organic cotton
Benefits from economies of scale
Improved online experience
Heavy reliance on EU markets
Quality concerns
Store experience, sometimes lacking
Lack of click and collect
Gross Margin Decreasing
Does not own any factories
Only has transactional website in 9 countries
Opportunities:
Threats:
First store in India in 2013/14
Company opened 356 net stores globally in the year with plans to open a further 375 stores by the end of the coming year.
US and China biggest expansion plans in 2014-15
Australia early 2014, Philipines late 2014
South Africa new sourcing hub could be new retail destination also
New online markets
Sportswear – dresses the Swedish Olympics team in. Winter & Summer Olympics
Rising concern for environmental issues and H&M look to be at forefront
H&M Home Expansion
Independent Mens stores?
Flat like-for-likes for the year to 30 November 2013
Rapid expansion causing cash flow issues
Supermarket fashion
Target market struggling with finances
Increasing labour costs in manufacturing countries
Fluctuating raw material costs
Continued economic uncertainty in European markets
Transparency of suppliers
90% of products transported through Ocean
more than 20 country offices responsible for the various departments in each sales country.
Outsourced its product manufacturing to approximately 700 independent suppliers across the word for higher efficiency and synergies to cater its customer requirements
Political
AGAO duty free regulations in Ethiopia
Bangladesh political instability (80% of H&M products manufactured here)
Economical
Recession & economic uncertainty in Europe
Young people having less disposable income
Rising labour costs in