Market Summary
The global fashion industry is valued at 2.4- 3 trillion dollars, with sales expected to exceed 1.6 billion dollars (FashionUnited, 2016; Gilani, 2017). Despite the global economic turbulence, the fashion industry was one of the few winning industries with continued 5.5% annual growth during the last decade. According to the FashionUnited (2016), Nike is the largest company in the fashion industry with a value of 105 billion dollars, followed by the fast- fashion company Inditex with a value of 104 billion. The Louis Vuitton Moet Hennessy (LVMH) conglomerate comes in the third place followed by the US-based company TJX. The top 5 leading fashion companies is completed with the Swedish- based fast fashion company H&M with a market
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Global fashion giants should expect fierce competition from start-ups in the fashion industry capturing the trends of personalisation and local retailers already operating in emerging markets.
Company Summary
Hennes & Mauritz AB is a Swedish- based retail clothing company founded in 1947, operating in the fast fashion industry segment. Ever since, H&M grew and expanded to international markets, offering “fashion and quality at the best price”. In 2016, H&M ranked among the top 5 global fashion companies with a market value of 48.3 billion dollars and second in the fast fashion industry, outperformed by its main competitor Inditex (Fashionunited, 2016).
According to company’s annual report (2016), H&M operates 4351 stores in 64 markets and E-commerce in 35 markets with total sales reaching 223 billion dollars. Germany was the largest market with approximately 16.7% of the total H&M’s sales, followed by UK and France, with 6.8% and 6.1% respectively. The largest international market is the US market corresponding to a 12.1% of total sales, followed by China (4.9%). H&M is a traditional company with the founder family, namely the Persson family, holding the 70.1% of total votes and 38.5% of total shares
The clothing industry in the US entails more than 100,000 stores with combined revenues of over 150 billions dollars a year. The giants within this industry include Abercrombie & Fitch, GAP, Urban Outfitters, and TJX Companies, which I shall be concentrating on
H&M’s revenue was $24 billion in the year of 2015, a round trip to the moon is $750 million, to walk on the moon is $1.5 billion, two Airbus A380 is $810 million, the most expensive house, Antilia Mumbai in India is $1 billion, five F-35C Lightning II fighter jets are $1 billion, and the Los Angeles Lakers are $1 billion. Obviously, H&M makes a lot of money, has a great influence and impact on today’s fashion industry. What makes H&M one of the most popular global clothing retailers? Why does United States have over 400 different H&M locations? H&M’s visual marketing strategies played a big role in the success of the company.
In this paper, we present an elaborate analysis of the marketing mix employed by Nike in its marketing strategy. The marketing mix is conducted on the basis of the concept of "marketing mix" which is usually referred to as the "4Ps" as an important means of effectively interpreting as well as translating the marketing strategy into practice as noted by Bennett (1997).A recommendation is also provided.
J. Crew – One of the Largest Private Retail and real estate companies in America
HN stores are located as Retail Stores across several urban areas of cities where his target markets can conveniently access them. The Stores in all HN brands have their products grouped in Departments (e.g. TV and computers etc) so customers can easily access and compare the product range.
The report focuses on the Economic Value Added of Nike Inc. The analysis is conducted through a detailed assessment of the financial statements including income statement, balance sheet, and cash flow. Such financial statements are then applied to derive common-size statements for income statement and balance. The trends and predictions obtained from the common-size statements predict the future economic value. Similarly, the Pro-forma financial statements derived provide vital future economic performances of Nike Inc. According to the regression analysis and the assessment of the common-size and Pro-forma financial statements; Nike Inc. has a growth in revenue and earnings per share. The EVA computed using WACC, Net Operating Profit after Taxes (NOPAT), and Invested Capital is positive (+$391.24); this shows that Nike Inc. is financially stable and will grow in the next three years.
LVMH, known as Moët Hennessy • Louis Vuitton, is a French conglomerate and the largest producer of luxury goods in the world. LVMH was formed in 1987 with the merger of Moet et Chandon a champagne manufacturer, Hennessy a cognac manufacturer, and Louis Vuitton a fashion house.
Nike must cater to a large portion of the new generation that demands the latest trends and styles. Nike should take into account the changing US demographics due to the rising proportion of Hispanics, Asians, and African Americans. These groups have different preferences that Nike should be able to satisfy. Nike should identify the next generation of loyal customers and provide for their needs.
One of Nike’s main opportunities is product development. Developing their product range makes them more competitive and because products tend to go out of fashion quickly, Nike must introduce new products relatively fast because consumer demand the newest and latest products. Increase in internet shopping will no doubt reduce the cost and improve prices making them even more competitive.
Attention getter: Brands like H&M, forever 21, Zara have a dark secret that they don’t want you to know. Digging deeper in the world of fast fashion I found out of the vicious cycles that our clothing is manufactured in.
Sweden 's Hennes & Mauritz, more commonly known as H&M, is a retail-clothing company, famous for its reasonably priced “fast fashion.” With 6 different brands sold in 3,300 stores spread out over 54 countries, the company is second only in size to its direct competitor Zara. H&M uses psychographic segmentation, targeting at customers who belong to the group of fashionable and trendy consumers, who see shopping as a social activity providing pleasure in their daily life.
H&M was established in Västerås, Sweden in 1947 by Erling Persson. We now sell clothes and cosmetics in around 2.200 stores around the world.
Hennes & Mauritz (H&M) is one of the largest clothing retailers worldwide. Their target market range age group is about 0-40 years old, but is most popular for those 15-30 years old. The brand reputation has achieved the assumption that their goal is to offer fashionable clothing at a reasonable price. Their clothing is always on trend, and sold at an affordable price from about $0.80 to $450. H&M buys stock in large columns to keep prices affordable for their average consumer. They partake in many collaborations with designers and celebrities, such as, David Beckham, Alexander Wang, and the most recent, Kenzo, as well as many more. They have worked to achieve a quick and well established system with stores all around the world, and a large consumer variety. H&M is regularly featured in respectable fashion magazines, such as Vogue and Elle. The following shows all of the countries a customer is able to shop from on the online website.
The clothing industry, as one of the most globalized industries in the world (Bonacich et al 1994), is currently undergoing a restructuring, especially the fast fashion sector. Fashion markets are synonymous with rapid changes and short product life cycles. Therefore, changes in consumer demand for newness and fashion trend force the emergence of ‘fast fashion’ strategy in retailers like Zara and H&M and shifts in the focus of competitive advantage from price towards quick response. That is to say, clothing firms, which are adopting global or offshore sourcing strategy, are not considered to have more competitive advantages as before.
Hennes and Mauritz AB is a Swedish retail-clothing company, which has expanded enormously in the past years. H&M has grown from one single store in a small town in Sweden to a multinational ranked as the second largest global fashion retailer with its 3,600 stores in over 58 countries and $22 billion in annual sales (The World’s). This incredible story of success makes us wonder about their strategies and how they managed to get where they are today.