Vendor Development H&M
Submitted To:
Submitted By:
Mr. Sanjay Kumar
Bhakti Varma
CC FMS
M.F.M. II
Introduction About
H & M Hennes & Mauritz AB (H&M) is a Swedish multinational retailclothing company, known for its fast-fashion clothing for men, women, teenagers and children. H&M’s design team creates sustainable fashion for all, always at the best price. The collections include everything from dazzling party collections to quintessential basics and functional sportswear – for women, men, teenagers and children, and for every season or occasion. In addition to clothes, shoes, bags, jewellery, make up and underwear there is also H&M Home – fashionable interiors for children and adults. The width and variety of the H&M collections mean customers can always find something to suit their style and their wardrobe. There are H&M stores in 53 markets worldwide, and online shopping in 9 countries. H&M was one of the first to challenge the retail clothing sector by delivering fast fashion at low prices. The company offers different concepts for women, men, teenagers and children and includes everything from modern basics to high fashion. The collections are supplemented by matching accessories, nightwear, underwear and cosmetics. However H&M does not have factories of its own but has a multitude of designers and buyers and works with around 700 independent suppliers to produce clothing collections for almost everyone, all at affordable prices. H&M lives by its business concept, ‘fashion and quality at the best price’.
History In 1947 Hennes women’s clothing store opened in Västerås, Sweden. Today the H&M Group offers fashion for everyone under the brands of H&M, COS, Monki, Weekday, Cheap Monday and & Other Stories, as well as fashion for the home at H&M Home. 1947: The first store opens in Västerås, Sweden, selling women’s clothing. The store is called Hennes. 1952: Hennes opens in Stockholm. 1964: The first store outside Sweden opens in Norway. 1968: Founder Erling Persson buys Mauritz Widforss, hunting and fishing equi pment store. Sales of men’s and children’s clothing begin. The name is changed to Hennes & Mauritz. 1974: H&M is listed on the Stockholm Stock Exchange. 1976: The first store outside Scandinavia opens in London, in the UK. 1977: Impuls stores, focused on teenagers, are launched. Sales of cosmetics begin. 1980s: Stores open in Germany and the Netherlands. H&M acquires the mail order company Rowells. 1990s: Progress continues in Europe with the opening of the first store in France in 1998. Newspaper and magazine advertising is complemented by outdoor advertising featuring famous models. In 1998 H&M online shopping begins. 2000: The first US store opens on Fifth Avenue in New York. The same year stores open in Spain. In subsequent years, H&M opens in more European markets. 2004: H&M initiates designer collaborations starting with Karl Lagerfeld. More collaborations follow with Stella McCartney, Viktor & Rolf, Madonna, Roberto Cavalli, Comme des Garçons, Matthew Williamson, Jimmy Choo, Sonia Rykiel, Lanvin, Versace, Marni, David Beckham, Anna Dello Russo, Maison Martin Margiela and Isabel Marant.
2006: A major expansion of online and catalogue sales begins with the Netherlands as the first market outside the Nordic region. The first stores in the Middle East open via franchise. 2007: The first Asian stores open in Hong Kong and Shanghai. In the same year, the new concept store COS is launched. The expansion of online and catalogue sales continues with the inclusion of Germany and Austria. 2008: H&M opens its first Japanese store in Tokyo and acquires fashion firm FaBric Scandinavien AB, which comprises the brands Weekday, Monki and Cheap Monday. 2009: The first H&M stores in Russia open. Beijing also gets its first H&M and Lebanon becomes a new franchise market. H&M Home is launched. Weekday and Monki open in Germany. 2010: The first H&M stores in South Korea and Turkey open. Israel becomes a new franchise market. Online shopping starts in the UK. The first H&M Home stores open outside Sweden. Monki moves into Asia with a store in Hong Kong. H&M becomes the world’s largest consumer of or ganic cotton and continues to increase its use of sustainable materials in the following years. 2011: H&M opens in Romania, Croatia and Singapore, as well as via franchise in Morocco and Jordan. COS opens in Sweden, and Monki and Cheap Monday in the UK. The H&M Incentive Program – a reward and recognition programme for all employees – starts. COS and Monki launch online shopping in 18 markets. 2012: H&M opens in Bulgaria, Latvia, Malaysia and Mexico, and via franchise in Thailand. COS opens in Finland, Italy, Poland, Hong Kong and Austria, and opens via franchise in Kuwait. The Monki brand grows in China and Weekday opens in the Netherlands. 2013: The first H&M store in the southern hemisphere opens in Chile. H&M also opens in Estonia, Lithuania and Serbia. Indonesia becomes a new franchise market. H&M introduces online shopping in the US. The & Other Stories brand is launched in several European countries. COS, Monki, Weekday and Cheap Monday also open in new markets. Weekday and Cheap Monday launches online shopping. A global clothing collecting initiative starts in selected stores.
Brand Concept H&M should always have the best customer offering in each and every market. They offer collections that are wide-ranging and varied for women, men, teenagers and children. To H&M, design, quality and sustainability are not a question of price: they should always offer inspiring fashion with unbeatable value for money. Quality is a central topic, from initial idea to final product. It is the company’s aim to always exceed the customers’ expectations on quality. They ensure the best price by:
in-house design
no middlemen
large purchasing volumes
buying the right products from the right markets
efficient logistics
cost-consciousness in all parts of the organisation
An important element of their strong offering is that H&M should be the more sustainable choice. Considerable resources are devoted to increasing sustainability. H&M does not own factories, but instead buys products from independent suppliers that are close long-term partners of H&M. They work to bring about long-term improvement for people and the environment – in the supply chain, the garment lifecycle and the communities in which they are active. H&M is built on solid foundation. Their business conce pt “Fashion and quality at the best price” is as clear as their values, which are based on the fundamental respect for each individual and include a firm belief in their people. Other shared values are teamwork, simplicity, entrepreneurial spirit, cost consciousness, straightforwardness and openness, as well as striving for constant improvements. These values represent the H&M spirit.
Consumer Behaviour
The behaviour that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs is known as consumer behaviour.
It is essential to understand how people interact with the marketing system. Whatever else we may be in our lives – Child, Student, Jogger, Lover, worker, Parent – we are all consumers, all of our days. We buy and use goods and services constantly; to eat , to wear, to read, to watch, to play, to travel; to keep us healthy, to makes us wealthy and if not wise, at least better educated.
Consumer behaviour has changed dramatically in the past decade. Today, consumers can order online many customized products ranging from sneakers to computers. Today, the digital revolution of the market place allows much greater customization of products, services and promotional messages than older marketing tools.
Consumers have today:
A substantial increase in buying power.
A Greater variety of available goods & services.
A great amount of information about practically anything. A great ease in interacting and placing and receiving orders.
An ability to compare notes on products & services.
Perception is defined as 'the process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world'. The Selective Perception Process Stage Description
Selective exposure consumers select which promotional messages they will expose themselves to. Selective attention consumers select which promotional messages they will pay attention to. Selective comprehension consumers interpret messages in line with their beliefs, attitudes, motives and experiences. Selective retention consumers remember messages that are more meaningful or important to them. The implications of this process help develop an effective promotional strategy, and select which sources of information are more effective for the brand.
Factors Which Influence Consumer Behaviour 1. Internal influences Consumer behavior is influenced by: demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings. Consumer behavior concern with consumer need consumer actions in the direction of satisfying needs leads to his behavior of every individual depend on thinking. 2. External influences Consumer behavior is influenced by: culture, sub-culture, locality, royalty, ethnicity, family, social class, reference groups, lifestyle, and market mix factors
Consumer purchases are influenced strongly by or there are four factors: 1. Cultural Factor
Culture The set of basic values perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Culture is the most basic cause of a person’s wants and behavior. Every group or society has a culture, and cultural influences on buying behavior may vary greatly from country to country. Sub Culture A group of people with shared value systems based on common life experiences and situations. Each culture contains smaller sub cultures a group of people with shared value system based on common life experiences and situations. Sub culture includes nationalities, religions, racial group and geographic regions. Many sub culture make up important market segments and marketers often design products. Social Class Almost every society has some form of social structure. Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests and behaviour.
2. Social Factors
Groups Two or more people who interact to accomplish individual or mutual goals. A person’s behavior is influenced by many small groups. Groups that have a direct influence and to which a person belongs are called membership groups. Some are primary groups includes family, friends, neighbors and coworkers. Some are secondary groups, which are more formal and have less regular interaction. These include organizations like religious groups, professional association and trade unions.
Family Family members can strongly influence buyer behavior. The family is the most important consumer buying organization society and it has been researched extensively. Marketers are interested in the roles, and influence of the husband, wife and children on the purchase of different products and services. Roles and Status A person belongs to many groups, family, clubs, and organizations. The person’s position in each group can be defined in terms of both role and status.
3. Personal Factors
Age and Life cycle Stage People change the goods and services they buy over their lifetimes. Tastes in food, clothes, furniture, and recreation are often age related. Buying is also shaped by the stage of the family life cycle. Occupation A person’s occupation affects the goods and services bought. Blue collar workers tend to buy more rugged work clothes, whereas white-collar workers buy more business suits. A Co. can even specialize in making products needed by a given occupational group. Thus, computer software companies will design different products for brand managers, accountants, engineers, lawyers, and doctors. Economic situation A person’s economic situat ion will affect product choice Life Style Life Style is a person’s Pattern of living, understanding these forces involves measuring consumer’s major AIO dimensions. i.e. activities (Work, hobbies, shopping, support etc) interest (Food, fashion, family recreation) and opinions (about themselves, Business, Products).
Attitudes Attitude can be defined as simply and overall evaluation and it usually play a major role in shaping consumer behavior. As represented in Figure, in a contemporary view, attitude is formed in two fundamental ways: the cognitive component – beliefs, and the affective component – feelings. And these two determinants contribute in different manner towards different attitude object. And then, a person’s behavioral intention will depend on her or his attitudes. Consequently, consumers’ intentions to perform some beh avior should increase as their attitudes become more favorable. (Engel, Blackwell & Miniard 1995, p. 364-366).
Beliefs
Feelings
Attitude
Behavioral Intention
Behaviour
Brand Identity Personality
H&M is a cool brand. Their cloth is cheap, but has good quality as well. The brand is innovative and a trendsetter with lots of attitude. They have big volumes of sales, which mean that they have always trendy cloths in the shops. H&M have a wide supply and are also selling complements like accessories, cosmetics, shoes and underwear. H&M has a Magazine which they distribute in the shops. That magazine gives the customers different tip about the latest trends. For the customers that not manage to visit a store can buy H&M cloth on the Web Page. The logo
The logo H&M is the first letter in Hennes & Mauritz. The logo is light cursive which does it soft and not so hard and strictly. The brand colour is red. Red signifies for example enthusiasm and activity. I think this colour complete the H&M´s approach very well, because the company is creative and willing to renew and create fashion trends. Red is also a colour you can recognize far away, so when the customers see the sign at a long distant they will anyway recognize it. Medical colour test has also showed that red increase the pulsation. Value Proposition
You should buy this brand because it is cheap and you get high-fashion clothes that will make you to a trendy person. The clothing has good quality although it is cheap. H&M want that is should be easy to follow trends without losing big sums of money. You get great service in their stores and the employees will also give you tips. You leave always the store with a big smile on your lips.
According to the value proposition marketed the consumers believe that it matches with what the company offers. Their attitude naturally becomes positive as the promises made and the brand identity matches with what H&M gives the customers. A customer will have positive attitude only if he or she is fully satisfied.
