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H&M Marketing Strategy

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Rambau, Kristina

Hennes & Mauritz: Analysis of the strategic position in marketing terms
Seminar paper

Document Nr. V101131 http://www.grin.com/ ISBN 978-3-638-99552-8

9 783638 995528

Assignment: BS307 Semester A Year 2000/2001

“Hennes & Mauritz – Analysis of the strategic position in marketing terms”

Module: Strategic Marketing Module Tutor: John Batten

University Identification Number: 00054801 Scheme: BA (Hons) Marketing

Strategic Marketing

University Identification Number: 00054801

1

Introduction

The first “Hennes” store, a women’s clothes store, was opened in Vastaras, Sweden, in September 1947 by its founder Erling Persson. After expanding to Stockholm, Persson bought a hunting and gun store in 1968, where he sold men’s clothes and which he called “Mauritz”. The new company “Hennes & Mauritz” (H&M), which is Swedish for “Hers & His”, was born. Today H&M is one of the most successful clothing retailers in Europe. It sells around 400 million garments a year and has 620 stores in 14 countries. In April 2000 H&M started going global by successfully expanding to the United States, with its first shop on the Fifth Avenue in New York. The company does not manufacture itself but works together with approximately 900 suppliers in Europe and Asia. To supervise this production H&M maintains twenty production offices around the world. Around 26500 employees are working for H&M in these days, most of them in one of the shops. The overall turnover of the group has been SEK 32977 million in 1999, which equals approximately £ 563,614 million. H&M employs 70 designers who along with pattern designers and buyers create the collections for women, men, youngsters and children. The overall business concept is “Fashion and quality at the best price” (www.hm.com). Germany is H&M’s biggest market with 32% of the group’s turnover. The first shop in

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