H&M "Finally" Lands in Beijing Fashion and quality at the best price

The brand new store is located at Qianmen Avenue, a newly developed shopping area in the very heart of the cultural capital. "I'm proud to say that we finally have arrived in Beijing", says Ro Eriksen, CEO H&M. "We hope that we can offer our Beijing customers added value through fashion and quality at the best price."

Oriented with the concept of  "to offer fashion and quality at the best price", H&M makes effort to realize it growth target every year: to increase the number of retail stores by 10 to15 percent per year, as well as to boost sales in existing stores.

In 2007 H&M successfully launched in China. The irst mainland China store opened in Shanghai in April 2007 and since then 14 new locations have opened in southeast China. Now the time has inally come for H&M to open its irst store in Beijing.

More than 60 years have passed since H&M opened the doors of its irst store in Vasteras, Sweden, and today H&M can be found in Europe, North America, the Middle East and Asia. In 2007, H&M continued to achieve strong sales and high profitability, while at the same time attracting many new customers. H&M entered four new countries, opened 193 new stores, introduced several new concepts and continued the launch of catalog and online shopping in Europe. The number of stores amounted to 1,767 on 31 March 2009 on 34 markets.

H&M's collections are created by an in-house Design and Purchasing Department, whose goal is to offer the customers the latest fashion trends.

To maintain the fine quality of the merchandise, the H&M also carry out quality controls. Moreover, they also strive to ensure that the garments are manufactured with the least possible impact on the environment and under satisfactory working conditions.

Price factor could also be an essential factor for H&M, comparing with other international competitors, such ZARA, Mango, and so on. According to the H&M Facts 2008, it presented the elements on how to maintain the best price: limiting the number of middlemen, buying in large volumes, relying on our extensive, in-depth expertise within the design, fashion and textile industries, buying the right merchandise from the right production markets, being cost-conscious at all levels, and maintaining effective distribution procedures.

Moreover, besides these key operational factors, H&M still have some other basics contribute to its success. In the following part, I will list some of them:

Make fashion accessible

H&M meets the customer through three complementary sales channels: stores, the internet and the catalogs. However, the most important channel is the stores. Here, the customers can actually see, touch and try on the latest fashions, receive styling tips and get inspired by the garments. H&M display windows showcase the merchandise so that customers will be drawn into the stores.

The goal of H&M is to always place H&M stores in the best shopping districts, whether they are in large cities or shopping malls. This has been H&M's expansion strategy ever since the irst store opened, and it still applies today. For example, H&M has stores on Fifth Avenue in New York, Regent Street in London, Corso Vittorio Emanuele in Milan, Queen's Road in Hong Kong, and, of course, the Qianmen Avenue in Beijing. Having the best location is absolutely critical to a store!ˉs success. Each store is unique. In order to create a store with the best possible chances for commercial success, H&M analyzes the local customer base, other stores in the market and consumer trafic low. All of these factors are considered when

determining the requirements for a new location. In some locations, a store targeted towards teenagers has the greatest commercial potential, while in other locations, a store for the entire family is best. Most important, however, is choosing the right combination to suit the market.

Furthermore, H&M's growth is not based solely on attracting customers to new stores in new markets; it is just as important to constantly improve and strengthen the product assortment through creative solutions and surprises in the collections.

Product

H&M focuses on the fashion-conscious consumer and offers a wide and varied assortment of products. H&M customers can ind clothes, shoes and accessories from which they can create their own personal style to suit any occasion. Finding something new and exciting should always be possible ¨C whether in the store, catalog or online. While H&M constantly update the assortment with new merchandise, it is equally important to surprise the customers with exciting new products.

In 2007, H&M launched several exciting and new fashion concepts, which included shoes to match our various collections, high-quality lingerie and underwear basics, fashionable garments in organic cotton, the H&M skin care series for men, and the new chain of stores COS ¨C Collection of Style Every year H&M would like to collaborate with famous designers or stars to launch a season's newcollections. One of the big Ladies collections in the spring of 2007 was an extensive classic collection that H&M designed together with style icon Madonna. During the fall of that same year, collaboration with Roberto Cavalli attracted a great deal of attention when the Italian fashion legend created an exclusive H&M collection for men and women.

The fashion highlight for H&M this season is the designer collaboration with Matthew Williamson from April 23, who will give full access to his exclusive world, with a women's collection bringing together iconic pieces from his past collections with the brilliant color of his brand new catwalk looks. In May H&M will present the second part of the collection for both men and women in 1,600 stores ¨C an exclusive collection only available at H&M.

These collaborations show the strength and scope of H&M's offering by proving, in effect, that fashion and design are not simply a matter of price. The attention also strengthens H&M's brand as an international fashion house.

Create value at each level

The focus is always on the customer. H&M collections always develop from the focus on the consumer. H&M offers many different concepts to satisfy the needs of customers of all ages and who have a variety of fashion tastes.

Every collection is created and planned at the H&M headquarters in Stockholm, Sweden. When working at this level, it is extremely important to understand what the customers want ¨C from the idea to the new product to the store. H&M's designers, pattern makers and buyers agree on which trends will inspire H&M's fashion for the upcoming season and try to ind a good balance between modern basics, current trends and high fashion. H&M outsources production to independent suppliers, located mainly in Asia and Europe.

Careful planning and organization are required to ensure the process is smooth and efficient. Millions of items are shipped to the stores from a number of distribution centers around the world.

Delivering the right merchandise to the right store at the right time is key to ensuring that H&M customers will always ind something new and exciting when they shop.

A strong brand is becoming an increasingly important competitive advantage nowadays. The purpose of all H&M communications is to build the brand on both a short-term and long-term basis and to express a positive profile and image.

Collections, stores, magazines, PR activities, shows, events and designer collaborations should all convey the same message. Customers should be familiar with H&M and know what it stands for ¨C fashion and quality at the best price.

Source form China Textile Magazine

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