H&M is a Swedish fashion retailer operating around 2,000 stores in 37 countries worldwide. Based on their internationalization strategy, that provides to open 10% - 15% new stores each year, they are always looking for new expansion opportunities. Our research and data analysis have shown that the Australian apparel market offers a constant growth in the next years.
Besides the market is highly fragmented and no current player is offering a broad product line for all ages and genders. For that reason it seems to be a promising opportunity for H&M to enter the Australian market, as it offers a broad range of clothes for all fashion-conscious people under the same roof. Furthermore the risk of failure is reduced as Swedish products have a good reputation in Australia what results from the success of other Swedish firms who have already expanded to the country.
Table of Contents
1. Introduction
2. Description of H&M
2.1. Company Profile
2.2. Environmental Justification for the Australian market
3. Market Analysis and Competitor Identification
3.1. Market Analysis
3.2. Competitor Identification
3.3. Five-Year-Forecast
4. Market Entry and Expansion
4.1. Market Entry Strategy and Justification of the Choice
4.2. Five-Year-Expansion strategy
5. Consumer Behaviour
5.1. Country-of-Origin
5.2. Consumer Animosity
5.3. Consumer Ethnocentrism
6. Market Segmentation, Target Market and Positioning
6.1. Market Segmentation
6.2. Target Market and Positioning
7. International Marketing Mix
7.1. Product
7.2. Price
7.3. Place
7.4. Promotion
8. Conclusion
Research Objective and Core Topics
This report provides a comprehensive strategic assessment regarding the potential entry of the Swedish fashion retailer H&M into the Australian apparel market. The primary research objective is to analyze market viability, competitive dynamics, and consumer behavior to determine the most effective market entry strategy for the brand.
- Market environment and industry analysis in Australia
- Competitor identification and benchmarking
- Evaluation of consumer behavior, specifically focusing on country-of-origin effects and ethnocentrism
- Development of a recommended market entry strategy and international marketing mix
Excerpt from the Book
2.1. Company Profile
Hennes & Mauritz (H&M) is a Swedish clothing retailer, offering fashion for women, men, teenagers and children, whereas their “styling” ranges from casual to business. The company has been founded in 1947 in Västerås, Sweden and in these days H&M is operating in 37 markets on four continents. In addition to their 2,000 stores worldwide, they also run online shopping in some European countries. Their business concept is to “offer fashion and quality at the best price” (H&M 2010). Next to clothing, H&M is selling cosmetics, accessories and footwear. They promise their customers to be fashionable up to date and to fulfil their needs: “From the latest fashion to the most wearable basics – there is something for everyone” (H&M 2010).
Summary of Chapters
1. Introduction: Outlines the purpose of the report, which is to analyze the Australian apparel market and provide a strategic recommendation for H&M's expansion.
2. Description of H&M: Provides an overview of the company's background and business concept, alongside a justification for the Australian market based on cultural similarities and economic potential.
3. Market Analysis and Competitor Identification: Examines the fragmented state of the Australian clothing industry, identifies key competitors, and presents a five-year forecast.
4. Market Entry and Expansion: Recommends the establishment of a wholly owned subsidiary as the primary market entry strategy and outlines a phased expansion plan.
5. Consumer Behaviour: Analyzes the influence of country-of-origin effects, consumer animosity, and ethnocentrism to confirm the suitability of the Australian public for the H&M brand.
6. Market Segmentation, Target Market and Positioning: Defines the specific customer segments to be targeted, focusing on fashion-conscious individuals in major urban centers.
7. International Marketing Mix: Details the operational strategy regarding product offerings, pricing, distribution channels (including online), and promotional activities.
8. Conclusion: Summarizes the findings and reiterates the recommendation for H&M to proceed with the Australian market entry.
Keywords
H&M, Australia, Apparel market, Market entry strategy, Wholly owned subsidiary, Consumer behaviour, Country-of-origin effect, Consumer ethnocentrism, Market segmentation, International marketing mix, Retail expansion, Fashion retail, Competitive advantage, Consumer animosity, Brand positioning.
Frequently Asked Questions
What is the core focus of this report?
The report focuses on evaluating the strategic feasibility and potential success of H&M entering the Australian apparel retail market.
What are the primary themes discussed?
Key themes include market analysis, competitive landscape, consumer behavior, and the formulation of an international marketing mix for a new market entry.
What is the research goal of this publication?
The primary goal is to provide a reasoned recommendation for H&M's expansion into Australia, supported by data on industry growth and consumer sentiment.
Which scientific approach is utilized?
The study employs a descriptive and analytical approach, synthesizing industry reports, statistical data, and established marketing theories to evaluate market potential.
What is the focus of the main section?
The main section covers the environmental justification, market entry strategies, consumer behavior profiles, and the specific application of the four Ps (Product, Price, Place, Promotion) for the Australian market.
What are the characterizing keywords of this work?
The work is characterized by terms such as market entry strategy, consumer behavior, fast fashion, and international expansion.
Why is a wholly owned subsidiary recommended?
A wholly owned subsidiary is recommended to ensure full control over operations, maintain brand identity, and safeguard business processes despite the higher initial capital requirements.
How does the author assess the Australian consumer?
The author concludes that Australian consumers exhibit low levels of ethnocentrism and have a positive perception of international, particularly Swedish, brands, making the market highly receptive.
- Arbeit zitieren
- Marcel Bieg (Autor:in), 2010, H&M's Opportunity for Entering the Australian Apparel Market, München, GRIN Verlag, https://www.grin.com/document/283914
