h&m_in_india
DESCRIPTION
H&M in IndiaTRANSCRIPT
H&M entering INDIAN MARKET
Agenda
• Background & Overview
• Macro Analysis
• Marketing Strategy
• Implementation – marketing mix
Background Analysis Marketing Strategy Implementation
• Implementation – marketing mixGroup Members:
Geč Tina
Guček Suzana
Perviz Lejla
Rus Nina
Skok Alja
Executive Summary
H&M is not present in India and there is a demand for
H&M.
Background Analysis Marketing Strategy Implementation
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.
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
Background Analysis Marketing Strategy Implementation
CAGR 2009-15
• 39% of total apparel consumption in urban
areas but
• In 2025 urban consumption > rural
consumption
MARKET SEGMENTATION
Number of households
(million)
Income (USD)
Low income group 80.7 below 581
Lower middle income group 50.4 581-1,162
0 -17 yrs
37 %
18 – 35 yrs
31 %
36 – 49 yrs
18 %
36 – 49 yrs
14 %
Background Analysis Marketing Strategy Implementation
Lower middle income group 50.4 581-1,162
Middle income group 19.7 1,162-1,790
Upper middle income group 8.2 1.790-2,465
High income group 5.8 above 2,465
Total 164.8
TARGET: 17 % OF HOUSEHOLDS - 9% of disposable income goes for clothing
Market Segmentation
Background Analysis Marketing Strategy Implementation
Market Segmentation
0 -17 yrs
37 %
• urban areas
• rural areas
18 – 35 yrs
31 %
• income
36 – 49 yrs
18 %
• education
• occupation
36 – 49 yrs
14 %
• social class
• lifestyle
Target Market
Background Analysis Marketing Strategy Implementation
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
Market Potential Analysis
• Retail in India is weakly organized2002 2008 2011 (projected)
total retail organized
(1,8%)
total retail organized
(4,6%)
total retail organized
(11%)
Background Analysis Marketing Strategy Implementation
(1,8%) (4,6%) (11%)
USD Bn 194 3,5 300 14 527 58
Market Potential Analysis
• clothing, textile and fashion accessory
represent 36% of the whole retail industry and
is a leader in organized retailing
• Joint venture
Background Analysis Marketing Strategy Implementation
• Joint venture
with Lifestyle
Primary Data Gathering
• Questionare with 13 questions – two sections
– Low number of participants
– Positive response
• Contacted H&M and got no response
Background Analysis Marketing Strategy Implementation
• Contacted H&M and got no response
• Participated on forums
H&M quick facts
• 35 markets (2009)
• 1988 stores (2009)
• 76.000 employees (2009)
• Sales including VAT SEK 118,7 billion (2009)
Background Analysis Marketing Strategy Implementation
• 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
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.
Background Analysis Marketing Strategy Implementation
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
FASHION AND QUALITY AT THE BEST PRICE
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
Background Analysis Marketing Strategy Implementation
Opportunities:
1. Explore the collections
2. Online sales
3. Expanding in other segments
Threats:
1. Competition delivery time
2. Exchange rate flactuations
ImplementationPlace
People
Persona
Deliver product through
convenient channels
Reflect company values
onto employees
Bring meaning to
the brand
1. Best business locations
2. H&M concept stores
1. Constant growth
2. Recruit locally
1. Global identity
2. English language
Background Analysis Marketing Strategy Implementation
Product
Process
PositioningTo build brand and
product awareness
To deliver an experience
beyond expectations
Catered to be more efficient
and accessible
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
Promotion
Implementation - Price
Background Analysis Marketing Strategy Implementation
• Competitors prices (ex. Zara)
Questions?
Background Analysis Marketing Strategy Implementation
Questions?