H&M entering INDIAN MARKET
Agenda
Background & Overview Macro Analysis Marketing Strategy mp ementat on market ng m x
Background
Analysis
Marketing Strategy
Implementation
Executive Summary
H&M is not present in India and there is a demand for H&M.
We are going to enter the Indian market and so make H&M accesible to Indian customers
Joint venture and representing the brand as on other markets.
Background
Analysis
Marketing Strategy
Implementation
Indian Apparel Market
Market value $28,102.6 million with 7,6% CAGR 2009-14 Ready-to-wear 77% market share with 9% CAGR 2009-15 39% of total apparel consumption in urban areas but In 2025 urban consumption > rural consumption
Background Analysis Marketing Strategy Implementation
MA RKET SEGMENTATION
0 -17 yrs
37 %
18 35 yrs
31 %
36 49 yrs
18 %
36 49 yrs
14 %
Low income group Lower middle income group Middle income group Upper middle income group High income group Total
Number of households (million) 80.7 50.4 19.7 8.2 5.8 164.8
Income (USD) below 581 581-1,162 1,162-1,790 1.790-2,465 above 2,465
TARGET: 17 % OF HOUSEHOLDS - 9% of disposable income goes for clothing
Background Analysis Marketing Strategy Implementation
Market Segmentation
Background
Analysis
Marketing Strategy
Implementation
Market Segmentation
0 -17 yrs
37 %
18 35 yrs
31 %
36 49 yrs
18 %
36 49 yrs
14 %
urban areas rural areas
income
education occupation
social class lifestyle
Target Market
Big urban areas: Mumbai, Delhi, Bangalore 18-35 years college, university degree and high school students young employees with western habits, young families middle upper social class, higher income lifestyle: global sekers, but still faithful to culture, religion
Analysis Marketing Strategy Implementation
Background
Market Potential Analysis
Retail in India is weakly organized
2002 2008 2011 (projected) total retail organized total retail organized total retail organized (1,8%) (4,6%) (11%) USD Bn 194 3,5 300 14 527 58
Background
Analysis
Marketing Strategy
Implementation
Market Potential Analysis
clothing, textile and fashion accessory represent 36% of the whole retail industry and is a leader in organized retailing Joint venture with Lifestyle
Background
Analysis
Marketing Strategy
Implementation
Primary Data Gathering
Questionare with 13 questions two sections
Low number of participants Positive response
Contacted H&M and got no response Participated on forums
Background
Analysis
Marketing Strategy
Implementation
H&M quick facts
35 markets (2009) 1988 stores (2009) 76.000 employees (2009) Sales including VAT SEK 118,7 billion (2009) Profit after tax SEK 16,4 billion (2009) Growth target: increase the number of stores by 10-15 % per year
Analysis Marketing Strategy Implementation
Background
H&M quick facts
H&M is seen as a fast-fashion retailer with very high ratio in collections changes and lower prices for trendy products as their competition. Collections are very adventurous and fashionable. Brand atributes: constant arriving of new products, stores are expanding, new campaigns are lunched, inviting, exciting and constant surprise for the customers FASH IO N AND QUAL IT Y AT THE BE ST PRICE
Background Analysis Marketing Strategy Implementation
Positioning Map
Background
Analysis
Marketing Strategy
Implementation
Client SWOT
Strengths: 1. Trendy items at low price 2. Quick delivery time ( 2 weeks) 3. Flexible approach to product sourcing Weaknesses: 1. Old stock 2. Too many shops 3. Absent in Latin America, India
Opportunities: 1. Explore the collections 2. Online sales 3. Expanding in other segments
Threats: 1. Competition delivery time 2. Exchange rate flactuations
Background
Analysis
Marketing Strategy
Implementation
Implementation
Place People
Deliver product through convenient channels Reflect company values onto employees
1. Best business locations 2. H&M concept stores 1. Constant growth 2. Recruit locally 1. Global identity 2. English language 1. Global media stretegies 2. Indian stars designers 1. No big adaptation - sizes 2. Country origin effect 1. Monitoring the demand 2. Control and listening skills Implementation
Persona
Bring meaning to the brand To build brand and product awareness To deliver an experience beyond expectations
Positioning
Promotion
Product Process
Catered to be more efficient and accessible Analysis
Background
Marketing Strategy
Implementation - Price
Competitors prices (ex. Zara)
Background Analysis Marketing Strategy Implementation
Questions?
Background Analysis Marketing Strategy Implementation
