H & M 's Business Plan

1773 Words Oct 24th, 2016 8 Pages
Background Information about H&M
Erling Persson developed the multinational corporation, H&M, in 1947. Originally, the company was called Hennes, as it stood for “hers” and only sold women’s clothing. The executive team quickly realized that selling menswear would open another market entirely for them. From this point onwards, H&M was known as Hennes and Mauritz. Their clothing line ranges from athletic to business wear. Incorporating seasonal changes, producing environmentally friendly pieces of clothing, and recognizing the need for a sustainable future helps this retail giant gain customer loyalty.
H&M is currently in 63 industrial and 33 online markets, with thousands of stores across the globe. As a clothing brand, H&M attempts to focus on price and quality to form a sustainable brand image. The global clothing retailer has approximately 148000 employees all determined to make a difference in the economy. Increased awareness of environmental implications, partnership plans and employment rights are at the forefront of H&M’s business plan, in order to become more socially responsible. Although the company still has a lot of work to do, they are taking steps in the right direction to improve their current situation.
The fashion industry is the second largest, making up 2% of the global market’s GDP annually. Competitors include Forever 21, Zara, Arcadia and Gap. Similar to H&M, these competing clothing brands target the middle class, with enough disposable income to…

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