Hennes and Mauritz, commonly known as H&M is a Swedish company selling fashionable inexpensive clothes. It a leading brand, whose fame is spread worldwide. H&M owns more than 1300 stores in 24 different countries. It is present in America since 2000, and recently entered Asia. The next destination where the company plans to expand is Japan. Japan's population is really attractive and constitutes a real potential as the Japanese are fashionable people. However, the company needs to analyze and gather more information about Japan and its market before entering the country. The report will first establish the macro environmental examination of the country, thanks to the SLEPT analysis, the 12C framework will describe every aspect of the market and the Hofstede analysis will develop the awareness of the Japanese culture. The second part will expose the main challenges that the company will have to face. The third part will determine which entry mode is the best suited for the Swedish company. Finally, the last part will analyze if the collaboration of the company with the famous singer Madonna will have beneficial impacts on the brand.
Tags: Analysis of H&M, H&M strategy, H&M case study, Case of H&M in Japan
[...] The best suited strategy to enter Japan H&M wants to expand its presence in Japan; many choices of Foreign Market Servicing are offered to licensing, franchising, exporting, creating a joint venture, or entering through Foreign Direct Investment. Each option involves different levels of investment, expected returns, control, risks, competitive threat and strategy implications Franchising is the granting of the right by a parent company (the franchisor) to another independent entity (the franchisee) to do business in a prescribed manner in return of a lump sum payment and shares of the profit. [...]
[...] Part Impact of Madonna's collaboration with H&M in Japan Impact of using a celebrity on a brand Billions of dollars are spent each year on celebrity's endorsement ( 20 percent of all advertising use some type of celebrity endorser).Theory and practice has proved that the use of a famous person in advertising generates attention from the public. There are many strategies in marketing and we are submerged with ads. That's why brands have to distinguish themselves from the competitors to have an impact on consumers. [...]
[...] Currency The currency used in Japan is the yen. It is a strong currency, relatively stable to a certain extent as its exchange rate has increased against the euro and the US dollar for a few months. Commitment / Contractual obligations. For a long time Japan controlled the trade to favour its national companies. There were many restrictions to the entry of foreign competitors. But this period is over as Japan has begun to open its borders and let foreign companies in. [...]
[...] Technological: Japan is the second most technologically-powerful economy in the world after the US. o Some of Japan most important technological contributions are found in the fields of electronics, machinery, industrial robotics, optics, chemicals Robotics constitutes a real strength, as Japan leads the world by possessing more than half of the world's industrial robots used for manufacturing (402,200 out of 742,500). o Japan has significant plans in space exploration, including building a moonbase by The 12C Framework Country See the SLEPT analysis before mentioned Consumption 60% of apparel spending is dedicated to women; this is followed by men and children. [...]
[...] 12) Impact in Japan Today, the star has a good image, but it wasn't the case at her beginnings. She began with nude picture of her, and then she began a singer. Some of her albums were very provocative and controversial towards politic, religion and sex. Yet, thanks to a change in her attitude, her image has improved and her fame has grown. She now writes books for children since 2003) and her songs and clips aren't provocative anymore. Today Madonna is perceived as a modern and fashionable woman. [...]
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