Markets and expansion - H&M Group (2024)

FAQs

What is the expansion strategy of H&M? ›

H&M, currently, follows a direct expansion strategy by taking the route of having its stores. In many countries, however, such a direct approach is sometimes not very encouraging and in such cases, H&M adopted the franchise route. Regulatory hurdles have never stopped H&M from entering a new market.

H&M operates in a monopolistic competition. A monopolistic competition is a type of imperfect competition that is characterised by the large number of firms that sell similar, but not identical products.

The H&M Group had the third-largest share of the apparel market in 2017, at 1.4 percent, behind Nike and Adidas. The company's brand was valued at over 15.8 billion U.S. dollars in 2019. H&M has a strong brand presence on.

H&M's Business Strategy: Key Insights

Adjusted Brand Portfolio: To counter negative associations with fast fashion, the H&M Group has diversified its portfolio, incorporating brands like COS, & Other Stories, and ARKET, emphasizing quality at higher prices.

To adapt to changing consumer demands, H&M is expanding beyond its eponymous clothing label. The company is opening stand-alone beauty and home stores, while also incorporating homeware sections into its regular stores.

An expansion strategy is the business's approach to attaining this growth, such as expanding a customer base, offering more products, improving profit margins, growing brand presence, or obtaining more online or brick-and-mortar commerce locations.

H&M Group is a global fashion and design company, with over 4,000 stores in more than 75 markets and online sales in 60 markets. All our brands and business ventures share the same passion for making great and more sustainable fashion and design available to everyone.

H & M Hennes & Mauritz AB, also known as H&M Group, is a multinational clothing company based in Sweden that focuses on fast-fashion clothing. As of 23 June 2022, H&M Group operated in 75 geographical markets with 4,801 stores under the various company brands, with 107,375 full-time equivalent positions.

H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on Nasdaq Stockholm. Find more financial information such as our Annual report, Sales figures, and information about the share here.

H&M's sales earned the company sixth place in a ranking of the leading apparel retailers worldwide. H&M's fast fashion competitor Inditex, owner of the brand Zara, came in fourth. Zara's brand value was also significantly higher than H&M's. In 2022, H&M had a brand value of over 4.4 billion U.S. dollars.

Who is H&M biggest supplier? ›

Our supply chain in numbers

China and Bangladesh are the largest production markets for clothing. The European Union is the largest production market for our beauty assortment. Average length of a supplier relationship is 9 years, but we have been doing business with some for over 21 years.

In the 2023 edition of Forbes' World's Top Companies for Women list, H&M is among the top 10 out of 400 companies, taking the #1 position in the Clothing and Shoes category.

2007. – H&M goes Far East, opening the first stores in Shanghai and Hong Kong SAR. – Marking 60 years after the first Hennes store opened, our first portfolio brand COS is born.

The H&M mission statement is "to make fashion accessible and enjoyable for all." High fashion used to be something that ordinary people only see on the runways, on the red carpet, or on TV. High fashion is not something that you can find in your own closet or on pedestrians that you encounter on the streets.

The fashion brand's change in leadership comes at a time when sales are down 4% for December and January year-over-year. H&M also faces intensifying competition from Shein and Zara, both of which saw sales growth in the same period.

A global expansion strategy is a formal business plan that outlines how a company intends to expand its operations into foreign countries and markets, while mitigating risks and enhancing revenue growth.