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H&M Entering Australia

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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 …show more content…

Therefore, for the purpose of this report, two specific market segments have been selected and profiled to provide an overview of which segments H&M should specially target when launching in Melbourne.

3.1 – Profile One – Women 's outwear segment

The foremost market segment that H&M should target would be the women 's outerwear segment which includes all garments from tops to blouses to jackets (REFERENCE). Main reason being, this market segment is reasonably profitable with a Retail Value of over $3000 million (Refer to figure XX), where women have traditionally been the dominate consumer in the clothing and footwear industry (REFERENCE). However, there appears to be a new social trend where men are becoming more fashion-minded and are also looking for cheaper options (REFERENCE). In recent times, there has been a change in preference for young women, where they do not only demand for high quality yet fashionable products, it must also be low priced (REFERENCE). H&M should then be able to target this segment, as the company 's core concept coincides with this new trend. Where H&M 's women 's clothing are designed for women of all ages who are fashion minded, where its product line includes “everything from modern basics to tailored classics, sportswear, maternity clothes and cutting-edge fashion.” (H&M, 2008, pg. 17). However, for the purpose of this report and to make it easier to target, the primary segment will be young women aged 18 to 24, while the

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