presentation by national university of singapore - winners of cbs case competition 2011

Caroline Ng Candice Lim Peh Che Min Tobias Chen

F . O . C . A . L

H&M: Bolder.Bigger. Be8er

H&M’S Identity: Our winning proposition Analysis Stage Implementation Conclusion Runway Backstage

Winning Proposition

Affordable Chic Fast Fashion Inclusive

Objec+ve

1. “Sustainable growth with High Impact strategic initiatives whilst keeping things Simple”

2. 10-15% growth in number of stores per year

Challenges Ahead Analysis Stage Implementation Conclusion Runway Backstage

Stagnating growth in Europe

Diverse consumer preferences

Intense Competition

Increase in raw material prices

Talent attraction & retention

Challenges

1

2

4

5

3

Key Issues 1. Prioritizing growth options

2. Maximizing shareholder’s value

3. Managing cost to support growth

Criteria to evaluate growth options Analysis Stage Implementation Conclusion Runway Backstage

Degree of Complexity

High Impact (x2)

Growth Potential

Competition

• Simple • Congruent with core business & expertise

• Cost effective

• Sales • Impact on brand • Expertise

• Future potential • Scalability • Cost-benefit analysis

• Similarity • Clustering effect • Economies of scale

Evaluating Growth Opportunities Analysis Stage Implementation Conclusion Runway Backstage

Growth Options Degree of Complexity

High Impact (x2)

Growth Potential

Competition

Favorable Unfavorable

Improve day to day performance

Expand online channels

Geographic expansion

Expand product category (Home)

Brand Expansion

Recommendations:Project Runway Analysis Stage Implementation Conclusion Runway Backstage

Set the Stage Strut the Runway Managing Backstage

1. Increase no. of customers

- Focus on male segment

2. Increase sales per customer

- Increase accessories segment

1. Geographic Expansion

-Asia Pacific

2. Online Channel -Advertise on

‘taobao’ - H&M online

wardrobe

1. Secure new suppliers

-South East Asia

2. H&M’s talents - Increase efficiency

of sales people - Management

associate programme

Recommendations: Project Runway Analysis Stage Implementation Conclusion Runway Backstage







-Asia Pacific

2. Online Channel - Store on Taobao

Mall - H&M online

wardrobe iphone app


-South East Asia



associate programme

Recommendations: Project Runway Analysis Stage Implementation Conclusion Runway Backstage







-Asia Pacific

2. Online Channel -Advertise on

‘taobao’ - H&M online

wardrobe


-South East Asia



associate programme

H&M: Project Runway


Backstage – Make it Happen Analysis Stage Implementation Conclusion Runway Backstage

Increase number of customers

Increase sales per customer

Grow existing segments


H&M MEN

1. The Fashion Fraternity

2. Guest Designers

CAGR: 3% (2005-2010) Market Value 322.3Bn USD

H&M ACCESSORIES

1. Greater Variety of Designs

2. Integration with Apparel

CAGR: 4.6% (2010 Inc.)

Increase number of customers

Increase sales per customer

SeAng the Stage – H&M MEN Analysis Stage Implementation Conclusion Runway Backstage

Purchasing Behaviour Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Purchase Evaluation

Look Good

Online Self- reliant

Creatures of Habit Comfort, Price, Quality

Brick & Mortar Rationalization

Less reliance on information sharing

H&M’s Men Accessories 1 2



Need Recognition

Information Search


Purchase Decision

Purchase Evaluation

Look Good






Increase advertising to

men

Cater personal space for men

Male consumer preferences

1 2 3

Financial risks Market Size Acceptance

Pilot Testing: Flagship stores in Beijing & Shanghai



Information Search

Personal Space

The Fashion Fraternity ‘时尚一族’

Internet/Mobile: Chinese forums

Shanghai & Beijing



Information Search

Personal Space



Shanghai & Beijing

Newly Affluent middle class

Trendy males seeking fashion tips



Information Search

Personal Space



Shanghai & Beijing

Baidu: Year 2010 • China: 64.02 billion queries

• WAP and PDA based mobile search

• Exclusive forums for males – ‘男人吧’



Information Search

Personal Space

Brick & Mortar

Beijing Shanghai

Personal Lounge

Music Entertain (Fuᶔball)/ Magazines

Key Takeaways 1. Pilot market in Shanghai & Beijing – 12 months

2. Interna>onal roll-‐out of improved H&M man in year 2012 3. Target 60 stores by Year 2013



H&M ACCESSORIES

HELPING YOU FIND…



Sales /sqm

0.5% to Grp revenues

H&M ACCESSORIES



Integrating accessories with apparel

Do it your way



Integrating accessories with apparel

Trend, Modern, Classic, Everyday Mamma, Divided, & denim, L.U.G.G

H&M: Project Runway


Strengthen exis+ng forts while expanding new markets

250 new stores in 2011

Aggressive pursuit of Asia-‐Pacific

Increase dominance in W Europe and N America

Analysis Stage Implementation Conclusion Runway Backstage

Untapped markets

Asia-‐Pacific

Middle East & Africa

Eastern Europe

South America

Market Size Ease of Entry Growth Poten>al

Compe>>on


Iden+fying KEY new markets

Posi>ve Spillovers


Emerging markets

Asia-‐Pacific


Eastern Europe

South America


Compe>>on


Where to expand in 2011

Posi>ve Spillovers

High sales

High CAGR

Dominant Chinese market

Ranked 3rd in value sales behind North America and Europe

CAGR of 13% from 2010-‐2013E

71% of total Asiapac sales

Source: Euromonitor


Emerging markets

Asia-‐Pacific


Eastern Europe

South America


Compe>>on



Posi>ve Spillovers

Aggressive greenfield expansion – large poten>al, large growth

Franchise mode – cultural and legal constraints

Sizeable market near H&M stronghold

Lucra>ve market to enter in the future


Strengthen exis+ng forts while expanding new markets

Asia-‐Pacific: 25%

Eastern Europe: 10%

MENA: 10%

N America: 15%

250 new stores in 2011

Western Europe: 45%

S America


Asiapac: Focus on China

Southeast Asia

Source: Euromonitor

Singapore, Indonesia, Malaysia

North Asia

China, Japan, South Korea, Taiwan

1

2


Much poten+al for growth in China

169

71.252

0 50 100 150 200

China

Germany

CF Market Share (USD billions) in 2009

Large poten+al for growth in

Chinese market

Source: Euromonitor, H&M


Domina+ng the Chinese stage

Source: H&M

42 stores, concentrated in Eastern China


Domina+ng the Chinese stage

4.5% popula>on 4% of GDP

44.5% popula>on 32% of GDP

51% popula>on 64% of GDP


Source: Ogilvy


Opportuni+es for growth in 2nd and 3rd +er ci+es


Source: Ogilvy

Rapidly emerging middle class in 2nd and 3rd >er ci>es


Effec+ve way to reach out to Chinese masses

Source: Ogilvy


Leveraging on the Chinese e-‐commerce trend Analysis Stage Implementation Conclusion Runway Backstage

Efficient expansion via Taobao.com

• 370 million users • 50 million unique visitors daily

• Low capital investment • Aggregated distribu>on centers

Cri+cal mass

Efficient expansion


Efficient expansion via Taobao.com

Cri+cal mass

Efficient expansion

UNIQLO SUCCESS STORY • 2 million RMB sales daily • Exceeded retail store sales in just 4 days


H&M on Taobao Mall

潮流指标


Maximising the m-‐commerce plaform

The current H&M applica+on

Source: Forrester Research, ABI Research, Modus Associates

Basic features

Limited geographic

reach

The poten+al In m-‐commerce

Smartphone penetra+on

Poten+al in mobile

M-‐shopping takeup


Maximising the m-‐commerce plaform


Basic features

Limited geographic

reach

The poten+al inm-‐commerce


My Wardrobe

H&M: cheap chic, 24/7, everywhere

My Wardrobe

New Retail Channel

Network Effect

Brand Saliency


Increasing visibility 24/7, on-‐the-‐go

My Wardrobe

Brand Saliency

New Retail Channel

Network Effect

• Create your oueit using H&M Catalogue items • May also use your personal items



Brand Saliency

New Retail Channel

Network Effect

My Wardrobe

# 02 out of 107 oueits

Buy it. Keep it.

• Create your oueit using H&M Catalogue items • May also use your personal items



Brand Saliency

New Retail Channel

Network Effect

My Wardrobe


Buy it. Keep it.


Leveraging on network effects

My Wardrobe


Buy it. Keep it.

New Retail Channel

Network Effect

Brand Saliency

• Average of 220 friends • Photo album • Newsfeed (and no>fica>ons) • Wall post


Complementary revenue stream

My Wardrobe


Buy it. Keep it.

Network Effect

New Retail Channel

Brand Saliency

Source: BCG

Average of 150% increase in sales voume


40% more likely to buy

20% higher expenditure My Wardrobe


Buy it. Keep it.


Network Effect

New Retail Channel

Brand Saliency

• Average of 220 friends • Photo album • Newsfeed (and no>fica>ons) • Wall post

40% more likely to buy

20% higher expenditure

Increased purchase frequency

Source: Informa>onWeek

Larger purchase sizes

Case study:


H&M: Project Runway



Limiting Agents

Cost of Production

Speed to Market

Human Resources

1

2

3

Backstage – Reducing Costs Analysis Stage Implementation Conclusion Runway Backstage

(1) Soaring Cotton Prices

Source: International Monetary Fund


(2) Rising Cost of Production in China

Labor Cost

Rental Cost

Other Fixed Cost

Affordable Fashion?


NhonTrach Industrial Park, Dong Nai Province

• Established Textile Cluster • Heavy FDI Investments • Developed infrastructure • Proximity to Saigon • Proximity to Ports


NhonTrach as production base for Asia Pacific

• Centralised Production • Shipping cost offset by production cost savings • Boosts speed to market

Backstage – Increasing Speed to Market

Backstage – Overcoming Manpower Constraints Analysis Stage Implementation Conclusion Runway Backstage

Salespersons

Need to keep up with rapid expansion of physical stores

↑ Number of Salespersons

1 ↑ Revenue / Salesperson

2

Managers

Management Associate Programs • Targets Business students • Accelerated program, job rotations,

international experience

Financials Analysis Stage Implementation Conclusion Runway Backstage

Assumptions

WACC of 11.2%

Base growth rate of Sales Revenue (without Runway) at12% per annum

COGS at 30% of Sales Revenue in 2011, decreases by 0.5% per

annum until 2016, constant thereafter

Selling expenses at 34% of Sales Revenue in 2011, 35% in 2012~14,

decrease by 0.5% per annum until 33%, constant thereafter

Aggregated Group tax rate of 25.3%

Straight-line depreciation of capital expenditures over 5 years


SEK 23.5 Billion Incremental Profit in 2021

Break-even in 5 Years


Worst Case Base Case Best Case

SEK 28.4 Billion SEK 35.4 Billion SEK 44.3 Billion

Implementa+on Timeline Analysis Stage Implementation Conclusion Runway Backstage

Project Runway 2011 2013 2012 2014 2015

Pilot 1

2

Interna>onal roll out

Set. Stage 1. Pilot H&M Man project

in Shanghai and Beijing 2. Increase accessories

market


3

4

Interna>onal expansion with a focus in Asia Pacific

1

2

Project Runway 2011 2013 2012 2014 2015



market

Strut . Runway 1. Geographic expansion 2. H&M applica>on



3

4

Interna>onal expansion with a focus in Asia Pacific

Develop

1

2

Project Runway



market

Strut . Runway 1. Geographic expansion 2. H&M applica>on

2011 2013 2012 2014 2015

Manage. Backstage

1. Suppliers 2. Strengthen HR

Support functions ongoing through fiscal years


Conclusion

Priori>zing growth op>ons

Sustainable growth with High Impact strategic ini>a>ves whilst keeping things Simple

Cri+cal Issues

Objec+ve

Managing costs Recrui>ng and retaining talents


Set. Stage Recommenda+on Strut. Runway Backstage

Benefits Sustainable growth

High Impact Simple

Conclusion



Cri+cal Issues

Objec+ve




Benefits NPV: 35.4bn SEK over 10 year


F . O . C . A . L

H&M: Bolder.Bigger. Be8er


F . O . C . A . L

Complementary Slides

Jus+fica+on for Addi+onal 1.6% CAGR Analysis Stage Implementation Conclusion Runway Backstage

Equivalent of 1.6% of Sales Revenue in 2011

Prioritizing Options for Growth

Op+on 1: Day to day performance

• Increase sales per square feet -‐ Fashion credibility (Guest designers) -‐ DifferenCaCon -‐ Cost effecCve -‐ Untapped segments

• Increase store traffic -‐Revenues -‐ Brand visibility

• Constant ‘fresh’ image

• Scheduling to maximize impact • Revenue contribu>ons unjus>fied

Op+on 2: Online Channel

• 24/7 Shopping • Greater reach to target segment • Cost effec>ve • Changing lifestyle • Viral marke>ng

• Integra>on of online channel • Revenue contribu>ons unknown • Lack points of differen>a>on

Op+on 3: Geographic Expansion

• Diversifica>on • Increase revenues fast • Increase brand visibility • Compe>>ve pressures to move fast • New collabora>ons with local designers

• Lack understanding of foreign markets • Right >ming to enter emerging markets important • Constrained by resources

Op+on 4: Product Category (LT)

• Diversifica>on • Increase revenue streams in lucra>ve market • Leverage on exis>ng suppliers • Build H&M lifestyle concept

• Incompa>ble with brand image • High risks involved • Supply chain complexity • Spreading resources too thin • Revenue contribu>on unjus>fied

Op+on 5: Brand Expansion (LT)

• Diversifica>on • Capture apparel market segments • Growth Poten>al

• High risks involved, • No economies of scale • Increase complexity; resource constraints • Cannibaliza>on • Affect group culture

Geographic Expansion: Where first? Variables Western

Europe Eastern Europe

North America

South America

MENA Asia Pacific

Market Size US$379bn US$64bn (Russia: 43.8bn)

US$352bn US: US$329bn

US$88.3bn (Brazil: 43% of total volume sales and nearly 55% of value sales in 2008 – lower end market)

US41.5bn China: US$169bn Japan: US$134bn Australasia: US$11bn

Growth Poten+al

2.4% 8.9% 4.7% (Exp increase)

4% 12% 9% 5.1% (Male)

Ease of Entry

• Easy • Familiar market

• Rela>vely easy

• Familiar market

• Easy • Difficult • Unfamiliar market

• Difficult • Unfamiliar market

• Sensi>ve

• Rela>vely easy

• Familiar market (P)

Compe++on Note: Clustering is good

• Mature market

• Stable compe>>on

• Emerging market

• Intense

• Mature market


• Emerging market

• Intense

• Emerging market

• Less compe>>on

• Emerging market

• Intense

Posi+ve Spillovers

-‐ve +ve (Russia) +ve +ve (Brazil)

-‐ve (Franchise)

+ve (Singapore)

Total Market Value in 2010: €769.3bn

SeAng the Stage – H&M MEN Implementation Conclusion Runway Backstage Stage Analysis


Need Recognition

Information Search


Purchase Decision

Purchase Evaluation

Look Good







Need Recognition

Information Search


Purchase Decision

Purchase Evaluation

Look Good





Too risky to increase emphasis on Menswear

PILOT TESTING in CHINA



Need Recognition

Information Search


Purchase Decision

Purchase Evaluation

The Fashion Fraternity

Guest Designers

Lock in loyalty

iPhone Application


Information Search


Purchase Decision


To create a comfortable and pleasurable shopping experience - for men only

Lounge Catalogues Assistance

Relaxing and unintimidating atmosphere

What To Wear & Fashion

Tips

Subtle, non- intruding


Information Search


Purchase Decision





Information Search


Purchase Decision

Guest Designers

sales per customer x no. of customers

Global Caters to both

genders Prestige

Fred Perry

Tom Ford


Information Search


Purchase Decision

Shi shangyizhu




Information Search


Purchase Decision

iPhone Application

Fashion advice Sales channel

sales per customer x no. of customers

Back-‐up Slides

Why men category?

• High CAGR • Increasing market share • Increasing acceptance • Increasing affluence • Increasing need to look good and trendy

• No strong focus at the moment • China/India: Dominant market • Experien>al • res>ng area:male shopping habits

Why not the franchising model?

1.Interna>onal brands in China are losing control and ability to monitor channels 2. Franchisee has the tendency to offer huge discounts when inventory builds up 3. Lack of compliance with brand building ac>vi>es to save money 4. Franchisee do not see brand building as part of their responsibility 5. No feedback loop on job informa>on, supply and sales rebate

Suits: Jul – Jan (Summer sales) Public holiday: Demand will spike

25 – 45 years old economic basis + strong pref for brand – 300,000,000

first >er ci>es – spill over to second >er ci>es 3rd >ers and 4th >ers are also upcoming shopping is a leisure and past >me…switch shops less ouen community malls are doing bever price focus to value driven

Why not verticalization?

1.Interna>onal brands in China are losing control and ability to monitor channels 2. Franchisee has the tendency to offer huge discounts when inventory builds up 3. Lack of compliance with brand building ac>vi>es to save money 4. Franchisee do not see brand building as part of their responsibility 5. No feedback loop on job informa>on, supply and sales rebate

Why not acquire?

1. Lack of exper>se 2. H&M is a growing business 3. Risk of cannibaliza>on 4. Risk of spreading one’s resources too thin 5. Unable to support too many brands

Why not Integrate?

1. Lack of exper>se 2. H&M is a growing business 3. Risk of cannibaliza>on 4. Risk of spreading one’s resources too thin 5. Unable to support too many brands

Value Proposi+on



Cri+cal Issues

Objec+ve




• Wet Seal Shows The Way • Are you slowly, cau+ously sor+ng out how to engage with your customers in

social networks? By Chris Murphy , Informa+onWeek September 25, 2010 12:00 AM

• Are you slowly, cau>ously sor>ng out how to engage with your customers in social networks? Well, if your customers are teenage girls, and 72% of them are on Facebook and 36% of them have a smartphone, you don't have the luxury of taking your sweet >me.That's why teen-‐girls' clothing retailer Wet Seal is among those blazing a trail in marke>ng with Facebook. One lesson it's learned is that girls want to do different things on each medium. They use Wet Seal's site to create oueits-‐-‐500,000 of them-‐-‐but they prefer to share oueits with friends using Facebook. Girls don't use their iPhones much to post content, but they viewed 750,000 oueits a week on the retailer's iPhone app in the back-‐to-‐school season. Here are some hard results Wet Seal has seen with its integrated Web, social networking, and iPhone strategy:

• Girls using the oueit tool are 40% more likely to buy, and they spend 20% more.Girls using a "Shop With Friend" feature, accessed through Facebook or the site, have a 2.5 >mes higher conversion rate.

• Facebook is now the largest marke>ng base for store traffic, thanks to coupons and campaigns, and one of the biggest drivers of traffic to Wet Seal's Web site.Facebook also is a gold mine for the customer-‐support team. "It's one of the primary tools they use to know if there are problems out there," says Wet Seal development director Shawn Keim. Wet Seal doesn't erase complaints but tries to resolve problems with comments on Facebook, so people see issues gezng taken care of.

• 91% of all US consumers own and use a mobile device • 1.8 billion smart-‐phones in use globally by 2013

Smartphone penetra+on

• Mobile marke>ng spend will top USD 1 billion in 2011

Poten+al in mobile

• 48% of smartphone users say they have already, or soon will, do mobile shopping

M-‐shopping takeup • 2D, sta>c photo

• Only works when near certain H&M stores

Basic features

Limited geographic reach


Source: Forrester Research, ABI Research, Modus Associates

Taobao Mall • Levi’s is the latest interna>onal brand to set up an online shop in China. Well, that

is made possible through Alibaba Group’s Taobao Mall. It’s a wise choice as Taobao is China’s largest retail website with more than 370 million users and receives over 50 million unique visitors each day.In Levi’s new online store, users are spoilt for choice with over 200 Levi’s products to choose from. On top of that, Levi’s will also introduce exclusive online-‐only styles on Taobao, a bonus to keep users coming back.Despite in early stage, Levis’s effort seems to be paying off well. Several thousands pair of jeans were already sold online, according to Taobao’s sta>s>cs. Apparently, Levi’s isn’t the only brand that has entered China’s online market through Taobao.“UNIQLO, Adidas, Procter and Gamble, L’Oreal Paris, Lenovo, Li Ning and Revlon have all launched official online retail storefronts on Taobao Mall as part of their e-‐commerce strategy,” a Taobao spokeswoman told Penn Olson.“For corporate retailers, Taobao Mall offers the infrastructure for complete management of their own brand and online retail channel while providing access to consumers situated in second and third >er regions across China in addi>on to urban centers such as Shanghai and Beijing,” she added.Business-‐to-‐consumer (B2C) ecommerce is booming in China. Last quarter, China hit a new high with a total of 64 million B2C orders. Without a doubt, a large number of orders comes from Taobao. If you’re a retailer and looking to capture the Chinese market, Taobao seems like a good place.

1) Eastern Europe & Asia Pacific 2) Grow by 10-‐15% new stores (220-‐330 stores

in following 12 mths)

Eastern Europe

Back-‐up: Zara opera>onal efficiency

2010 Expansion

Region No of new stores

% of total new stores

Western Europe 151 62.1%

Eastern Europe 29 11.9%

Asia-‐Pacific 26 10.3%

Middle East and Africa

15 6.2%

North America 22 9.1%

Variables Western Europe

Eastern Europe

North America

South America

MENA Asia Pacific





Growth Poten+al

2.4% 8.9% 4.7% (Exp increase)

4% 12% 9% 5.1% (Male)

Ease of Entry


• Rela>vely easy

• Familiar market



• Sensi>ve

• Rela>vely easy



• Mature market


• Emerging market

• Intense

• Mature market


• Emerging market

• Intense

• Emerging market

• Less compe>>on

• Emerging market

• Intense

Posi+ve Spillovers


-‐ve (Franchise model)

+ve (Singapore -‐ SEA)


M-‐commerce a complementary revenue stream

• 5th: mul+-‐channel • build integrated mul>-‐channel plaeorms (addressing customers via

different plaeorms and integra>ng them) call centers, web & mobile, direct, other, catalog, print/mail, TV, stores.

• Customers touched by numerous channels will spend more with the retailer: Average annual spend (USD): 260 -‐> 660 -‐> 1,620 from single channel -‐> dual channel -‐> tri-‐channel (store, catalog, internet) also creates more loyal customers

• push into online – e-‐/m-‐commerce • “Apparel, accessories and footwear” is biggest category in online

sales, and is expected to con>nue to grow at high rates (2009-‐2013 CAGR: 11%, forecasted online sales for USA, $40.3 bn in 2013)

• challenge for fashion industry – need to define equilibrium between brand and commercial objec>ves

Emerging markets

Asia-‐Pacific


Eastern Europe

South America


Compe>>on



Posi>ve Spillovers

Franchise to MEA Cultural and legal constraints

Emerging markets

Asia-‐Pacific


Eastern Europe

South America


Compe>>on



Posi>ve Spillovers

Move to medium run – 1. compe>>on is intense 2.unfamiliar market

Eastern Europe: mid-‐price on the rise Value Proposi>on Focus Forge Implementa>on Conclusion

• Economic crisis • Increased demand for middle-‐market

Timely opportunity

• Manufacturers in Turkey, Morocco and Bangladesh • Headquarters in Stockholm

Geographical proximity

Variables Western Europe

Eastern Europe

North America

South America

MENA Asia Pacific





Growth Poten+al

2.4% 8.9% 4.7% (Exp increase)

4% 12% 9% 5.1% (Male)

Ease of Entry


• Rela>vely easy

• Familiar market



• Sensi>ve

• Rela>vely easy



• Mature market


• Emerging market

• Intense

• Mature market


• Emerging market

• Intense

• Emerging market

• Less compe>>on

• Emerging market

• Intense

Posi+ve Spillovers


-‐ve (Franchise model)

+ve (Singapore -‐ SEA)


Defining the Tiers First-‐Tier Ci+es Four municipali>es: Beijing, Chongqing, Shanghai, Tianjin Ci>es with total retail sales of more than RMB30bn, annual per capita income of RMB11,000 and high per capita retail sales as propor>on of income: 10 provincial capitals: Changchun (Jilin), Chengdu (Sichuan), Guangzhou (Guangdong), Hangzhou (Zhejiang), Harbin (Heilongjiang), Jinan (Shandong) Nanjing, (Jiangsu), Shenyang (Liaoning), Wuhan (Hubei), Xi’an (Shaanxi) Four leading ci>es: Dalian, Qingdao, Shenzhen, Xiamen

Second-‐Tier Ci+es 17 provincial capitals: Changsha (Hunan), Fuzhou (Fujian), Guiyang (Guizhou), Haikou (Hainan), Hefei (Anhui), Hohhot (Inner Mongolia), Kunming (Yunnan), Lanzhou (Gansu), Lhasa (Tibet), Nanchang (Jiangxi), Nanning (Guangxi), Shijiazhuang (Hebei), Taiyuan (Shanxi), Urumqi (Xinjiang), Xining (Qinghai), Yinchuan (Ningxia), Zhengzhou (Henan) 50 prefecture-‐level ci>es, including, Ningbo, Suzhou, Wuxi, Wenzhou, Nantong, Dongguan, Zhanjiang 15 more ci>es with popula>ons of between 500,000 and 2mn

Third-‐Tier Ci+es Approximately 200 county-‐level ci>es

Fourth-‐Tier Ci+es Approximately 400 capitals of county towns

Source: Ogilvy

presentation by national university of singapore - winners of cbs case competition 2011

Business

growth4 increase

hms talents2

runway backstage1

project runway managingset

hms identity

sales store

online channel2

fashion tips