ANDHINI PUTRI, YESHICA INDRA, ASTARI AJENG

DATA GATHERING ANALYSIS H&M

THURSDAY, 7TH JULY 2011

  EXECUTIVE SUMMARY

H&M is the th i rd- largest reta i l brand target ing the young market that is known for i ts "Fashion and qual i ty at the best pr ice.” Having thei r manufactur ing here and seeing the broad prospect of reta i l ing in the Indonesian market, there has been some rumors addressing the H&M franchise here..

 EXECUTIVE SUMMARY

Hav ing done va r i ous t ypes o f resea rch , we ana l y ze tha t no t on l y the re a re much demands fo r i t , bu t the H&M re ta i l wou ld be pos i t i ve l y accep ted by the I ndones ian marke t wh ich a re av id f ash ion consumers . A l t hough known fo r i t s a f fo rdab le p r i ce , the marke t wou ld s t i l l be w i l l i ng to pay more fo r the advan tage o f hav ing an H&M in Grand o r P l aza I ndones ia ra the r than hav ing to fl y ou t to Hong Kong o r S ingapore fo r the c loses t s to re . Desp i te obv ious compet i t i ons such as Za ra , Fo reve r21 and o the r rap id g row ing I n te rna t i ona l b rands , H&M wou ld do ve r y we l l .

INTRODUCTION

  BACKGROUND INFORTMATION & HISTORY

H&M is a Swed ish re ta i l -c lo th ing company, was founded in 1947 by Er l i ng Persson by the concept o f c lo thes s to res se l l i ng s ty l i sh garments a t low pr ices. He named the s to re ‘Hennes ’ wh ich s tood fo r ‘hers ’ in Swed ish known fo r i ts fas t - fash ion c lo th ing o f fe r ings fo r women, men, teenagers and ch i ld ren. Product ion is outsourced to approx imate ly 800 fac tor ies in Europe and As ia , inc lud ing Indones ia .

  BACKGROUND INFORTMATION & HISTORY

Today, H&M is the wor ld ’s th i rd- la rges t re ta i l e r by sa les w i th over 2,300 s to res in 41 count r ies . I t managed to g row qu ick l y by o f fe r ing c lo th ing tha t i s seen as both fash ionab le and reasonab ly p r iced.

I t made i ts mark on the appare l i ndus t r y, m ix ing the la tes t t rends w i th fash ion c lass ics .

H&M’s bus iness mode l i s based on "Fash ion and qua l i t y a t the bes t p r ice . "

  DEFINE TERMS H & M M a r k e t i n g M i x ( P l a c e , P r o d u c t , P r i c e a n d P r o m o t i o n ) P l a c e i s c o n s i d e r e d o n e o f t h e m o s t i m p o r t a n t c o n c e p t s i n b u s i n e s s f o r H & M . B y o p e n i n g s t o r e s i t c r e a t e s a d i s t r i b u t i o n c h a n n e l t o p e o p l e t o p u r c h a s e t h e i r p r o d u c t . O t h e r c o u n t r i e s a l s o h a v e d e v e l o p e d o n l i n e s h o p p i n g f o r H & M , t h i s w a y t h e i r c u s t o m e r w o u l d h a v e a e a s i e r w a y t o p u r c h a s e . H & M s a i d t h a t d i s t r i b u t i o n c h a n n e l i s v e r y i m p o r t a n t f o r t h e m b e c a u s e i t i n c r e a s e s t h e i r s t o r e ’ s p o p u l a r i t y .

H & M ’s p r o d u c t s a r e h e a v y w e i g h t e d o n t h e i r f a s h i o n s e n s e a n d q u a l i t y . T h e r e f o r e i t s a t i s fi e s t h e n e e d o f i t s c u s t o m e r s . T h i s i s w h a t m a k e s H & M ’ s p r o d u c t a t t r a c t i v e .

T h e p r i c e s f o r H & M c l o t h e s a r e n o t e x p e n s i v e . H & M a l s o p r o m o t e s b u l k b u y i n g i n t h e i r s h o p s . T h e i r p r i c e s a r e w h a t a t t r a c t e d c u s t o m e r s t o r e - v i s i t . T h e p r i c e s a r e u s u a l l y c h e a p o r r e a s o n a b l e .

P r o m o t i o n i s l i s t e d o n e o f t h e m o s t c o m p l e m e n t a r y s a l e s c h a n n e l s . I t b r i n g s a t t e n t i o n t o t h e b u s i n e s s t h e r e f o r e w i l l g i v e l e a d t o t h e i n c r e a s e o f t h e i r b r a n d p o p u l a r i t y a n d l o y a l t y . T h i s m e a n s , H & M n o w h a s s e t u p a s u c c e s s f u l i m a g e i n p e o p l e ’ s m i n d .

  DEFINE TERMS

For eve r y company, no t j us t H&M, the b igges t th rea t to en te r i n to a i n te rna t iona l marke ts i s whethe r the i r co rpora te cu l tu re wou ld be ab le to adapt to the new env i ronment . Fo r examp le , i f H&M were to be he re i t wou ld be d i f f e ren t f rom the o the rs because o f buye rs .

Soc ia l i s a l so one o f the th rea ts  when en te r i ng to a i n te rna t iona l marke t . I f the b rand i s no t acceptab le to the soc ie t y H&M w i l l have to su f fe r f rom the l ack o f cus tomers .

  To ana lyze the poss ib i l i t y o f an H&M f ranch ise in Indones ia a long w i th i ts advantages and d isadvantages.

  To gather the pub l ic ’s react ion about i ts open ing a f ranch ise in Indones ia.

  Ana lyz ing H&M’s compet i t i veness aga inst a l l the ex is t ing re ta i l in Indones ia, loca l and in te rnat iona l .

OBJECTIVES

  PROBLEM STATEMENT

H&M sa i d t h a t d i s t r i b u t i o n channe l i s v e r y impo r t a n t f o r t h em because i t i n c r e ases t h e i r s t o r e ’s popu l a r i t y f o r peop l e t o pu r chase t h e i r p r oduc t . O t he r coun t r i e s a l s o ha ve de ve l oped on l i n e s hopp i ng f o r H&M.

H&M is unavailable in Indonesia in form of a retai l store. Would ( T h e c l o s e s t s t o r e i s l o c a t e d i n H K , a n d a n o t h e r o n e o p e n i n g i n S i n g a p o r e ) .

  PROBLEM STATEMENT

Would H&M serve well in the Indonesian market satisfying its avid consumers?

RESEARCH METHODS & ANALYSIS

DESCRIPTIVE TYPE OF RESEARCH DESIGN

OBSERVATION HOW THE DATA WAS COLLECTED

 http://shop.hm.com/

Since the physical store i tsel f are not avai lable here, we observe that the Indonesian market i tsel f rarely ever shop at the web store i tsel f .

 http://shop.hm.com/

Onl ine shopping for the market is l imited just Facebook and blogs. Though there are some who does purchase H&M off their officia l web, most people just do not bother with Internat ional shipping.

QUESTIONNAIRE HOW THE DATA WAS COLLECTED

  QUESTIONNAIRE

Our methods:

MANUAL & ONLINE

 MANUAL/DISTRIBUTED THROUGH VARIOUS

MALLS, HIGH SCHOOL AND COLLEGES

 ONLINE/

HTTP://

WWW.SURVEYMONKEY.COM/S/RYJDL6G

 WWW.SURVEYMONKEY.COM/S/RYJDL6G

 ONLINE/SURVEY MONKEY

DISTRIBUTED THROUGH SOCIAL NETWORKING AMONG FRIENDS – ABROAD AND NON.

 RESULTS/SURVEY MONKEY & MANUAL

 68% THROUGH ONLINE

 32% MANUAL

 RESULT/PART 1

SOURCE: ONLINE & MANUAL QUESTIONNAIRE RESULT

G e n d e r P e r c e n t a g e

M a l e 2 5 %

F e m a l e 7 5 %

 ONLINE/PART 1

SOURCE: ONLINE QUESTIONNAIRE RESULT

 ONLINE/PART 1

SOURCE: ONLINE QUESTIONNAIRE RESULT

 ONLINE/PART 1

SOURCE: ONLINE QUESTIONNAIRE RESULT

 RESULT/PART 2

SOURCE: QUESTIONNAIRE RESULT

Percentage Shopping Media

23 Social Network

19 Webstore

10 Ebay/Amazon

95 Retail

4 Others

 RESULTS/PART 2

SOURCE: ONLINE QUESTIONNAIRE RESULT

Percentage

Shopping Budget

30 < 500 IDR

33 500 – 1 MIL IDR

15 1 – 1.5 MIL IDR

18 1.5 – 2 MIL IDR

3 > 2 MIL IDR

1 ABSTAIN

Percentage

Income (Part 1)

31 1-2 MIL

20 2-3 MIL

25 3-4 MIL

15 >4 MIL

9 Abstain

 ONLINE/PART 2

SOURCE: ONLINE QUESTIONNAIRE RESULT

 ONLINE/PART 3

Percentage Are H&M products durable?

9 Strongly Agree

29 Agree

13 Neither

7 Disagree

0 Strongly Disagree

42 Abstain

 RESULT/PART 3

SOURCE: ONLINE & MANUAL QUESTIONNAIRE RESULT

  According to the quest ionnai re, people prefer H&M compared to Forever 21

  73% Percent of respondents (st rongly ) agree that H&M would do wel l in Indonesia

Percentage Prefer H&M than Forever 21

27 Strongly Agree

34 Agree

20 Neither

10 Disagree

0 Strongly Disagree

9 Abstain

  QUESTIONNAIRE LIMITATIONS

-The onl ine questionnaire disable the respondents to check al l strongly agree for Part 3 - The onl ine questionnaire doesn’t let you to put pictures as options

  QUESTIONNAIRE LIMITATIONS

-The manual questionnaire takes a lot of t ime and effort to be placed in codebook

FOCUS GROUP DISCUSSION HOW THE DATA WAS COLLECTED

  FGD

30th June 2011 Lasal le College, AC 2:

13.00 – 14.00 PM

  FGD RESULT

All of our respondents consisted of various college and university students of H&M’s target market and all is well aware or shoppers of H&M.

  FGD RESULT

Most of our respondents agree that the main i tems they buy is tops, fo l lowed by accessor ies such as jewel r ies and shoes. Th is resu l t coherent wi th the resu l t w i th our quest ionna i re.

Shopping items Pe r c e n

t a g e P r e f e r

3 8 To p s

1 4 B o t t o m s

1 4 D r e s s e s

1 5 A c c e s s o r i e s

1 7 S h o e s

SOURCE: QUESTIONNAIRE RESULT

  FGD RESULT

Half of the respondents cla im that they do use and l ike onl ine medias l ike blogs though not as often because they prefer retai l where they can actual ly observe the i tems.

Shopping media

  FGD RESULT

We gather that the respondents do shop at the mal l they f requent ly v is i t fo r the benefit o f the locat ion l i ke Pondok Indah Mal l , and Grand Indones ia/P laza Indones ia for the i r ava i lab i l i t y o f loca l brands there.

Shopping places

  FGD RESULT

The favor i te col laborat ing designs that the respondents prefer are by Lanv in and blogger E l in K l ing. Respondents a lso c la im that they would be wi l l ing pay up to 50% higher than the H&M pr ice range for a col laborat ion p iece i f the design is good.

Designer collaborations

  FGD RESULT

H&M Weaknesses

  FGD RESULT

Al though most of our respondents ind iv idua l ly are aga inst the idea i tse l f , most of them th ink that the H&M sweatshop labor issue abroad won’ t be too much of a bother for Indonesian because they most ly care af fordable pr ice.

Sweatshop labor issue

  FGD RESULT

Respondents th ink that H&M franchis ing would do very wel l in Indonesia market despi te the many reta i l compet i tors a l though some th inks that the products wouldn’ t be as good as the abroad because i t a l l depends on the buyers.

H&M franchising

  FGD RESULT

Respondents p ick that i f H&M were to open i t would be at Grand Indonesia/Plaza Indonesia due to the space and target market, and not at mal ls such as Pacific Place.

H&M franchising

  FGD LIMITATIONS

-During FGD, most of the respondents are late

- During the FGD, most of the respondents cancel their appointments

CONCLUSIONS & RECOMMENDATIONS

H&M themse l ves who sa i d t ha t d i s t r i bu t i on channe l i s ve r y impo r t an t f o r t hem because i t i nc reases t he i r s t o re ’s popu l a r i t y. And t he re i s no be t t e r p l ace t han t he I ndones i an ma rke t t o e xpand f o r t he t a rge t ma r ke t l i v i ng i n I ndones i a wh i ch a re a v i d f ash i on consume rs w i t h a ve rage go i ng t o 2 -3 shopp i ng t r i ps i n a mon th . A l t hough H&M p rov i des on l i ne shopp i ng f o r coun t r i e s i t s s to re a re no t a va i l ab l e a t , t he ques t i onna i r e r esu l t has suppo r t ed t ha t a lmos t 100 pe rcen t o f cos tume rs shops a t a r e t a i l s t o r e . W i t hou t a doub t , a s to re wou ld do ve r y we l l i n he re .

CONCLUSION

  Open a f ranchise in Indonesia

  I f an H&M store is to open in Indonesia, we recommend i t to be si tuated at Grand Indonesia or Plaza Indonesia.

RECOMMENDATION

THANK YOU.

FOCUS GROUP DISCUSSION FOR H&M

THURSDAY, 30TH JUNE 2011

  SHOPPING BEHAVIOUR

What items do you most prefer buying?

  SHOPPING BEHAVIOUR

How many times do you regularly shop?

Monthly/Weekly?

  SHOPPING BEHAVIOUR

What media do you use to shop?

  SHOPPING BEHAVIOUR

Which malls do you frequently visit?

Do you also shop there?

  SHOPPING BEHAVIOUR

What brand do you frequently purchase?

  H&M BRAND

What do you like most about H&M?

  H&M BRAND

Which of these collaborations do you like the most?

  SONIA RYKIEL

  LANVIN

  ELIN KLING

  MATTHEW WILLIAMSON

  H&M BRAND

What do you think is the weakness of H&M?

  H&M BRAND

Are you aware of the sweatshop labor issues abroad?

  H&M FRANCHISING

Do you think that would create a conflict of it opening in Indonesia?

  H&M FRANCHISING

What do you think of H&M opening a franchise here?

  H&M FRANCHISING

With so many existing retail brands, do you think H&M will be able to compete?

  H&M FRANCHISING

Suppose H&M opens here, where would you prefer it to be located?

  H&M FRANCHISING

Suppose H&M opens here, but its price range has increased, would you stil l buy it?

  H&M FRANCHISING

Suppose H&M opens here tomorrow, would you directly shop there?

THANK YOU.

FOCUS GROUP DISCUSSION FOR H&M

THURSDAY, 30TH JUNE 2011

This  following  questionnaire  is  done  by  Lasalle  College  International  Jakarta  students  as  part  of  a  Data  Gathering  class.    The  purpose  of  this  questionnaire  is  to  gain  knowledge  about  shopping  behavior  and  to  

find  out  about  the  opportunity  of  a  foreign  retail  brand  to  branch  out  to  Indonesia.    The  result  of  this  questionnaire  is  strictly  confidential.  

Part  1  

The  following  question  is  about  your  personal  information.    You  can  pick  the  best  or  tick  (√)  more  than  

one  answer.  

1. Gender:     ○ Male         ○      Female  

 2. Age:       ○    <  18     ○    18  –  22   ○    22  –  25     ○    >  25  

 3. Income  (disposable  or  not):  

o Rp1,000,000  –  Rp2,000,000     ○  Rp2,000,000  –  Rp3,000,000  

o Rp3,000,000  –  Rp4,000,000     ○    >  Rp4,000,000  

 4. Occupation:  

o High  school  student     ○  University  student  

o Housewife       ○  Entrepreneur  

o Other;  please  specify  ………………………………..  

 5. Interest  (check  all  that  apply):  

□ Fashion     □    Music   □    Photography     □    Movies  

□ Technology   □    Travel   □    Sports  

□ Other;  please  specify………………………………..  

Part  2  

The  following  question  is  about  your  shopping  attitude.    You  may  pick  the  best  or  more  than  one  answers.  

6. Recent  study  shows  that  shopping  relieves  stress.    How  often  do  you  go  shopping  in  a  month?  ○    Once       ○    2  -­‐  3  times     ○    3  –  5  times     ○    >  5  times  

 

7. Which  method  do  you  use  to  shop?  Please  check  all  that  apply.  □ Online  (from  social  networks  such  as  Facebook,  Kaskus,  etc)  □ Online  (from  official  webstore)  

□ Online  (shopping  website  such  as  Ebay  or  Amazon)  □ Retail  (come  to  the  shop)  □ Other;  please  specify………………….  

 

8. How  much  do  you  spend  on  buying  clothes  monthly?  o <  Rp500,000     ○    Rp500,000  –  Rp1,000,000   ○    Rp1,000,000  –  Rp1,500,000  

o Rp1,500,000  –  Rp2,000,000     ○    >  Rp2,000,000  

 9. What  item  do  you  prefer  to  buy?  

○    Tops       ○  Bottoms      ○  Dresses                ○  Accessories            ○  Handbags       ○  Shoes  

 

 o Shoes    

o Bags      

Part  3  

Please  check  one  box  for  each  statement  to  indicate  the  extent  to  which  you  agree  or  disagree  with  each  statement.  

Questions   Strongly  Agree   Agree   Neither   Disagree   Strongly  Disagree  

H&M  products  are  always  up-­‐to-­‐date  

         

H&M  products  are  affordable  

         

I  prefer  to  buy  H&M  products  than  Forever  21  

         

H&M  offers  a  wide  range  of  products  

         

H&M  products  are  durable  

         

H&M  products  are  durable  

         

H&M  would  gain  many  loyal  customers  in  Indonesia  

         

 

This  questionnaire  is  prepared  by  Yeshica  Indra,  Astari  Ajeng  Maharshi,  and  Andhini  Putri  Rahayu.  

Technology Methods

SURVEY AND OBSEVATIONAL PLANS

Thursday, May 5, 2011

Yeshica Indra – Fashion Business 3.2

Objective:

1. Compare all the online media traffic through hits and visitors: Newsletter, Official

website, Twitter, Facebook and Youtube

2. Decide which app is gaining more users, H&M for Android or iPhone & iPad

3. Compare the numbers of shoppers online and in store.

4. Find out whether the online site has too much or enough Flash animation that

caused it to load well or not.

5. Find out the site’s usability by reviewing the most and least clicked navigation

categories.

6. Does most website visitors go through the sale page

7. Find out the most reviewed product online.

8. Find out when the online sales most generate income

9. The most and least used payment method used online.

10. Find out the most and least amount people are willing to spend online.

11. The range of countries the online shipping provides.

12. The countries the online newsletter reaches.

PROJECTIVE TECHNIQUES

Association:

1. Fashion

2. Clothes

3. Women

4. Retail

5. Accessories

6. Franchise

7. Stylish

8. Young Adults

9. Affordable

10. Chic

Completion:

I would ____________________________ if an H&M franchise opens in Indonesia.

H&M is ____________________________ than Forever 21.

Construction :

FOCUS GROUP DISCUSSION GUIDE FOR H&M THURSDAY, 30TH JUNE 2011

PREAMBLE (5 minutes)

• Thanks  and  welcome    • Nature  of  a  focus  group  (informal,  multi  way,  all  views  acceptable,  disagree)  • There  is  no  right  or  wrong  answers-­‐all  about  finding  out  what  people  think  • Audio  and  video  recording  • Colleagues  viewing  • Help  self  to  refreshments  • Going  to  be  talking  about  H&M  brand  • Questions  or  concerns?    

INTRODUCTION AND WARM UP (5 minutes)

I’d  like  to  go  around  the  room  and  have  you  introduced  yourselves:  

• First  name  • Are  you  aware  of  the  brand  H&M?  • If  yes,  where?  

SHOPPING BEHAVIOR (15 minutes)

• What  items  do  you  most  prefer  buying?  • How  many  times  do  you  regularly  shop?  (in  a  month,  in  a  week)  • Where  do  you  shop?  (Retail,  online)  • What  mall  do  you  most  frequently  visit?    • (Do  you  also  shop  there?)  • What  brand  do  you  frequently  purchase?  

H&M BRAND (15 minutes)

• What  do  you  like  most  about  H&M?  (Price,  style,  colors,  quality)  • (Show  AD  campaigns  of  H&M)  Ask  for  opinions.  • What  do  you  think  is  the  weakness  of  H&M?    • Are  you  aware  of  the  H&M’s  sweatshop  labor  issues  abroad?    

H&M FRANCHISE (10 minutes)

• What  do  you  think  of  H&M  opening  a  franchise  in  Indonesia?    • Do  you  think  the  sweatshop  labor  issue  would  create  a  conflict  in  Indonesia?  • Do  you  think  H&M  can  compete  with  Indonesia’s  retail?  Why?  

CLOSING EXERCISE (10 minutes)

• Suppose  H&M  opens  here,  where  would  you  prefer  it  to  be  located?    • Suppose  H&M  opens  here  tomorrow,  would  you  directly  visit  the  store?    

EXPLORE AND REFINE

• Thank  the  respondents  and  close  the  session