Vendor Development H&M

Submitted To: Mr. Sanjay Kumar CC FMS

Submitted By: Bhakti Varma M.F.M. II

underwear and cosmetics. The collections are supplemented by matching accessories. men. men. shoes. make up and underwear there is also H&M Home – fashionable interiors for children and adults. ‘fashion and quality at the best price’. However H&M does not have factories of its own but has a multitude of designers and buyers and works with around 700 independent suppliers to produce clothing collections for almost everyone.Introduction About H & M Hennes & Mauritz AB (H&M) is a Swedish multinational retailclothing company. all at affordable prices. nightwear. and online shopping in 9 countries. The width and variety of the H&M collections mean customers can always find something to suit their style and their wardrobe. H&M was one of the first to challenge the retail clothing sector by delivering fast fashion at low prices. The collections include everything from dazzling party collections to quintessential basics and functional sportswear – for women. H&M’s design team creates sustainable fashion for all. H&M lives by its business concept. There are H&M stores in 53 markets worldwide. bags. teenagers and children. women. . teenagers and children and includes everything from modern basics to high fashion. In addition to clothes. teenagers and children. jewellery. always at the best price. The company offers different concepts for women. known for its fast-fashion clothing for men. and for every season or occasion.

2004: H&M initiates designer collaborations starting with Karl Lagerfeld. The name is changed to Hennes & Mauritz. Madonna. 1964: The first store outside Sweden opens in Norway. H&M opens in more European markets. David Beckham. selling women’s clothing. The store is called Hennes. Cheap Monday and & Other Stories. The same year stores open in Spain. 1976: The first store outside Scandinavia opens in London.History In 1947 Hennes women’s clothing store opened in Västerås. Today the H&M Group offers fashion for everyone under the brands of H&M. 2000: The first US store opens on Fifth Avenue in New York. 1990s: Progress continues in Europe with the opening of the first store in France in 1998. In 1998 H&M online shopping begins. Anna Dello Russo. Sales of cosmetics begin. Comme des Garçons. Viktor & Rolf. Sweden. In subsequent years. More collaborations follow with Stella McCartney. 1974: H&M is listed on the Stockholm Stock Exchange. 1947: The first store opens in Västerås. Maison Martin Margiela and Isabel Marant. . Marni. focused on teenagers. as well as fashion for the home at H&M Home. in the UK. Monki. 1980s: Stores open in Germany and the Netherlands. COS. 1977: Impuls stores. Jimmy Choo. Matthew Williamson. Lanvin. Versace. 1968: Founder Erling Persson buys Mauritz Widforss. Sweden. hunting and fishing equipment store. Newspaper and magazine advertising is complemented by outdoor advertising featuring famous models. 1952: Hennes opens in Stockholm. are launched. Weekday. H&M acquires the mail order company Rowells. Sales of men’s and children’s clothing begin. Sonia Rykiel. Roberto Cavalli.

2012: H&M opens in Bulgaria. Malaysia and Mexico. The first stores in the Middle East open via franchise. The expansion of online and catalogue sales continues with the inclusion of Germany and Austria. The & Other Stories brand is launched in several European countries. A global clothing collecting initiative starts in selected stores. Hong Kong and Austria. COS opens in Finland. Weekday and Monki open in Germany. and Monki and Cheap Monday in the UK. . Israel becomes a new franchise market. COS. which comprises the brands Weekday.2006: A major expansion of online and catalogue sales begins with the Netherlands as the first market outside the Nordic region. 2007: The first Asian stores open in Hong Kong and Shanghai. the new concept store COS is launched. Latvia. The first H&M Home stores open outside Sweden. Italy. Online shopping starts in the UK. COS and Monki launch online shopping in 18 markets. as well as via franchise in Morocco and Jordan. Monki and Cheap Monday. Weekday and Cheap Monday launches online shopping. COS opens in Sweden. 2011: H&M opens in Romania. H&M Home is launched. 2013: The first H&M store in the southern hemisphere opens in Chile. Lithuania and Serbia. 2010: The first H&M stores in South Korea and Turkey open. Weekday and Cheap Monday also open in new markets. Indonesia becomes a new franchise market. In the same year. The Monki brand grows in China and Weekday opens in the Netherlands. Poland. Monki moves into Asia with a store in Hong Kong. H&M becomes the world’s largest consumer of organic cotton and continues to increase its use of sustainable materials in the following years. Croatia and Singapore. Beijing also gets its first H&M and Lebanon becomes a new franchise market. Monki. and via franchise in Thailand. H&M introduces online shopping in the US. 2008: H&M opens its first Japanese store in Tokyo and acquires fashion firm FaBric Scandinavien AB. and opens via franchise in Kuwait. H&M also opens in Estonia. 2009: The first H&M stores in Russia open. The H&M Incentive Program – a reward and recognition programme for all employees – starts.

Their business concept “Fashion and quality at the best price” is as clear as their values. design. but instead buys products from independent suppliers that are close long-term partners of H&M. . simplicity. straightforwardness and openness. These values represent the H&M spirit. It is the company’s aim to always exceed the customers’ expectations on quality. cost consciousness. as well as striving for constant improvements. They work to bring about long-term improvement for people and the environment – in the supply chain. Considerable resources are devoted to increasing sustainability. Quality is a central topic. To H&M.Brand Concept H&M should always have the best customer offering in each and every market. teenagers and children. from initial idea to final product. the garment lifecycle and the communities in which they are active. H&M does not own factories. men. They ensure the best price by:       in-house design no middlemen large purchasing volumes buying the right products from the right markets efficient logistics cost-consciousness in all parts of the organisation An important element of their strong offering is that H&M should be the more sustainable choice. entrepreneurial spirit. H&M is built on solid foundation. quality and sustainability are not a question of price: they should always offer inspiring fashion with unbeatable value for money. They offer collections that are wide-ranging and varied for women. which are based on the fundamental respect for each individual and include a firm belief in their people. Other shared values are teamwork.

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Today. using. to keep us healthy. services and promotional messages than older marketing tools. consumers can order online many customized products ranging from sneakers to computers. purchasing. A Greater variety of available goods & services. Lover. Consumers have today:      A substantial increase in buying power. Whatever else we may be in our lives – Child. and disposing of products and services that they expect will satisfy their needs is known as consumer behaviour. to wear. to play. the digital revolution of the market place allows much greater customization of products. Today. A great amount of information about practically anything. to eat . Student. evaluating. to travel. to read. Parent – we are all consumers. all of our days.Consumer Behaviour The behaviour that consumers display in searching for. A great ease in interacting and placing and receiving orders. Jogger. An ability to compare notes on products & services. at least better educated. to makes us wealthy and if not wise. . We buy and use goods and services constantly. It is essential to understand how people interact with the marketing system. worker. Consumer behaviour has changed dramatically in the past decade. to watch.

sub-culture. motives and experiences. Consumer behavior concern with consumer need consumer actions in the direction of satisfying needs leads to his behavior of every individual depend on thinking. personality. ethnicity. attitudes. and select which sources of information are more effective for the brand. motivation. External influences Consumer behavior is influenced by: culture. organizes.  The implications of this process help develop an effective promotional strategy. royalty. psychographics (lifestyle). lifestyle. beliefs. 2. and market mix factors . attitudes. family. reference groups.  Selective retention consumers remember messages that are more meaningful or important to them. locality. selects. Internal influences Consumer behavior is influenced by: demographics. Factors Which Influence Consumer Behaviour 1. knowledge.  Selective comprehension consumers interpret messages in line with their beliefs. and interprets information to create a meaningful picture of the world'. and feelings. The Selective Perception Process Stage Description  Selective exposure consumers select which promotional messages they will expose themselves to. social class.  Selective attention consumers select which promotional messages they will pay attention to.Perception is defined as 'the process by which an individual receives.

Consumer purchases are influenced strongly by or there are four factors: 1. Many sub culture make up important market segments and marketers often design products. These include organizations like religious groups. racial group and geographic regions. Social Factors  Groups Two or more people who interact to accomplish individual or mutual goals. A person’s behavior is influenced by many small groups. 2. and behaviors learned by a member of society from family and other important institutions. Groups that have a direct influence and to which a person belongs are called membership groups. neighbors and coworkers. which are more formal and have less regular interaction. wants.  Sub Culture A group of people with shared value systems based on common life experiences and situations. Cultural Factor  Culture The set of basic values perceptions.  Social Class Almost every society has some form of social structure. religions. Social classes are society’s relatively permanent and ordered divisions whose members share similar values. and cultural influences on buying behavior may vary greatly from country to country. Sub culture includes nationalities. Some are primary groups includes family. friends. interests and behaviour. Each culture contains smaller sub cultures a group of people with shared value system based on common life experiences and situations. Some are secondary groups. Culture is the most basic cause of a person’s wants and behavior. Every group or society has a culture. . professional association and trade unions.

i.  Occupation A person’s occupation affects the goods and services bought. hobbies. computer software companies will design different products for brand managers. Tastes in food. family.  Roles and Status A person belongs to many groups. engineers. activities (Work. whereas white-collar workers buy more business suits. and organizations. A Co. support etc) interest (Food. can even specialize in making products needed by a given occupational group. lawyers. 3.e. family recreation) and opinions (about themselves. Family Family members can strongly influence buyer behavior. understanding these forces involves measuring consumer’s major AIO dimensions. Marketers are interested in the roles. furniture. The person’s position in each group can be defined in terms of both role and status. Personal Factors  Age and Life cycle Stage People change the goods and services they buy over their lifetimes. wife and children on the purchase of different products and services. Business. Products). Blue collar workers tend to buy more rugged work clothes. clothes. and influence of the husband. .  Economic situation A person’s economic situation will affect product choice  Life Style Life Style is a person’s Pattern of living. and doctors. clubs. accountants. The family is the most important consumer buying organization society and it has been researched extensively. Buying is also shaped by the stage of the family life cycle. Thus. shopping. and recreation are often age related. fashion.

and the affective component –feelings. (Engel. attitude is formed in two fundamental ways: the cognitive component – beliefs. And then.Attitudes Attitude can be defined as simply and overall evaluation and it usually play a major role in shaping consumer behavior. in a contemporary view. a person’s behavioral intention will depend on her or his attitudes. As represented in Figure. p. Blackwell & Miniard 1995. Consequently. 364-366). And these two determinants contribute in different manner towards different attitude object. Beliefs Feelings Attitude Behavioral Intention Behaviour . consumers’ intentions to perform some behavior should increase as their attitudes become more favorable.

You leave always the store with a big smile on your lips. . cosmetics. Red is also a colour you can recognize far away.Brand Identity Personality H&M is a cool brand. because the company is creative and willing to renew and create fashion trends. For the customers that not manage to visit a store can buy H&M cloth on the Web Page. Medical colour test has also showed that red increase the pulsation. shoes and underwear. The brand is innovative and a trendsetter with lots of attitude. That magazine gives the customers different tip about the latest trends. The logo is light cursive which does it soft and not so hard and strictly. Value Proposition You should buy this brand because it is cheap and you get high-fashion clothes that will make you to a trendy person. H&M has a Magazine which they distribute in the shops. I think this colour complete the H&M´s approach very well. The clothing has good quality although it is cheap. H&M have a wide supply and are also selling complements like accessories. The brand colour is red. which mean that they have always trendy cloths in the shops. Their cloth is cheap. H&M want that is should be easy to follow trends without losing big sums of money. They have big volumes of sales. so when the customers see the sign at a long distant they will anyway recognize it. The logo The logo H&M is the first letter in Hennes & Mauritz. You get great service in their stores and the employees will also give you tips. but has good quality as well. Red signifies for example enthusiasm and activity.

Their attitude naturally becomes positive as the promises made and the brand identity matches with what H&M gives the customers.According to the value proposition marketed the consumers believe that it matches with what the company offers. . A customer will have positive attitude only if he or she is fully satisfied.