Analysis Of Business Philosophy Behind H&M

　　 H&M The "fashion triangle" pairs. Clothes & Accessories Classified management: 1) to the basic section of the conventional paragraph at the bottom of the fashion triangle, because of its large demand, H&M makes use of perennial sales data to predict; 2) for the second type of seasonal fashion, H&M uses powerful designers and buyers to respond quickly to the trend of the season and reduce inventory risk as much as possible. 3) for the third category of fashion trends in the future, H&M will cooperate with the designer. In recent years, the H&M queuing rush is the result of cross-border cooperation with designer.

　　 High efficiency and low cost double supply chain

H&M outsourcing products to suppliers in different regions according to their product characteristics, so as to achieve a balance between time and cost. Among them, the basic fashion and children's wear were produced in Asia, accounting for 60% of the total production, while the remaining 40% of the popular trend products were in Europe. At the same time, the company through pre production technology, production offices check trends and product quality. H&M hopes to find a balance between time and cost. Unlike Zara's pursuit of speed lead time, H&M believes that "proper lead time is conducive to finding the best balance between price, time and quality". This led to M&M's lead time 5 days later than the 15 day of Zara, but it won the cost advantage, and the product price was cheaper than 30%-50% by about 30%-50%. Three in one interactive operation of entity stores, online shopping centers and mail orders

H&M not only provides shopping experience for consumers in the core business circle of every market, but also provides mail order and online shopping service for people by using network IT technology, so that global consumers can experience shopping pleasure whenever and wherever they want.

　　 H&M high profile cross border marketing to establish brand image

H&M and Zara's store is advertising. Marketing concept Different, the company has been building a brand in a high profile. From the cooperation between the designers and the designers every season, H&M has also made a lot of cooperation with entertainment stars, and the large print ads with the famous models occupy the gold business circle.

　　 H&M global layout: Europe is still the main market, and China and the United States become the new strategic focus.

Before twenty-first Century, the strategy of H&M was to base itself on Scandinavia and sweep Europe. The company diversify its direct sales channels (entity stores, mail order, e-commerce) to enrich the shopping choices of customers. The proportion of overseas revenue increased from 58% in 91/92 to 76% in 95/96. After entering twenty-first Century, H&M accelerated the pace of expansion, and entered the two or more than two countries every year at the rate of 10%-15% opening. The latest data show that the proportion of European market income is declining, but it is still the main market. The income of Nordic region decreased from 22.4% in 2003 to 13.7% in 2012. The operating income of the euro area except Finland has dropped from 56% in 2003 to 48.1%. Industry risk indicates that domestic terminal consumption is low and the risk of clothing consumption reduction is decreasing; external demand volatility affects the risk of export.