Garima Chaudhary-20BSP0762

1. Background and description-

The company was founded by Erling Persson in 1947, when he opened his first shop in Västerås, Sweden. The
shop, called Hennes (Swedish for "hers"), exclusively sold women's clothing.

H&M's business idea is to offer fashion and quality at the best price in a sustainable way. With a broad and
varied product range, H&M makes it easy for anyone who is into fashion to express their own personal style.
Hennes & Mauritz AB (H&M) is a Swedish multinational clothing company headquartered in Stockholm. It is
known for its fast-fashion clothing for men, women, teenagers, and children.
Besides getting paid, the “company mission” is the most important thing about their work for 8% of
employees at H&M. When asked to whom they feel the most loyal at work, 43% of employees said H&M's
mission and vision.

H&M is another household name in fast fashion whose popularity is almost as big as its production rate. It's
the second-largest retailer in the world (second only to Zara), which is fitting—the brand currently sells roughly
three billion garments a year.

2. History & Timeline

The H&M group – the first 70 years:

In 1947 Erling Persson opened the store Hennes in Västerås, Sweden. Today the H&M group has several
clearly defined brands that together make fashion and design accessible to people all over the world.
1947 H&M’s story begins when founder Erling Persson opens the first store in Västerås, Sweden, selling
women’s clothing. The store is called Hennes.
1964 The first store outside Sweden opens in Norway.
1968 The name is changed to Hennes & Mauritz when Erling Persson buys the hunting and fishing store
Mauritz Widforss in Stockholm, including a stock of men’s clothing. This is the start of sales of men’s and
children’s clothing.
2006 major expansion of online shopping at hm.com begins in Europe. The first franchise stores open, in the
Middle East.

2017 New brand ARKET is launched. H&M celebrates its 70th birthday and opens eight new online markets as
well as its first stores in Kazakhstan, Colombia, Iceland, Vietnam and Georgia. The H&M group sets new
sustainability goals: to use only recycled and sustainably produced materials by 2030 and to be climatepositive
throughout the value chain by 2040
3. H&M Marketing Analysis in UK

Production Orientation
It is a promotion strategy that emphases solely on goods rather than the desires and wants of its buyers.  The
company will drive all their resources on just how to create merchandise unique and totally different to
anything out there in the marketplace already.  Worthy of the high quality of the merchandise, direct sales
pitches and further types of advertising are not as vital as the excellence of the product itself i.e. Jaguar, Toni &
Guy (Hair care product line), Nandos. Bentley. The product idea is the oldest in the industry.  Consumers prefer
goods that are extensively available/low-priced concentrating on high assembly efficiency, low cost and mass
circulation. 

Market Orientation
A company uses Market Orientation to organise its activities products and services around its customers wants
needs. In the case of H&M it is seen that the company follows the philosophy, as H&M focus on the needs and
wants of their customers before creating their products. Constantly monitoring customer’s desires and quality
changing their products and services to what best suits their customers. “Putting the customers 1st and the
customer is always right”. H&M recognises the ongoing dip in the world’s economy and recognises that it is
becoming harder to buy expensive fashionable clothing.  So, it is H&Ms concept of trendy fashionable clothing
but within reach of the common man.  H&M have a strong standing with the US and Europe but market and
sell their products in 2 completely different ways.  The US target the young and most fashion-conscious
females and in Europe they are more of a department store.  When designing a product H&M always keep
their customers in mind.  Designer Ann-Solie Johansson admits that finding the customer’s needs is very
important.  She also states that she used to follow people off the subway and question them about their
fashion needs (scribed).

THE Marketing Mix used by H&M also includes the 4P’s

1. Product – Vast range of clothing and other items with a lower price range and a decent quality.  All
products are inspired by the latest Catwalk trends.  H&M’s product concept is “Everyday low price
product”.
2. Price – Cheap and affordable.
3. Place – H&M stores are all located in well-known locations.  They also and Online website which gives
consumers access to different products that they offer.  Consumers have the opportunity to browse
and order products anytime and anywhere.
4. Promotion – H&M focuses a vast amount of time on Promotion and advertising.  Direct marketing is
also used as part of H&Ms campaign.  H&M uses Celebrities, press and Bloggers to carry out the
advertising message.  Social Media, Video and print to make its products and services known to its
customers.