Task 1 L M Taewook Kang

H& M

Task 1

Copenhagen Business Senior high

AP Degree Programme in Marketing Administration 1st term

Guidance educator: Lorentz Jessen

The Particular date of Hand-in: 16th Dec, 2013

Titles and Validations: Taewook Kang,

Inna Nielsen,

Mads Zacho Krarup, Phillip Christian Schmølker Hornehøj, Azjargal Purevdavaa


1 . Launch (TK/PC)3

2 . Problem field (TK)3

a few. Problem declaration (TK/MC)3

5. Delimitation (TK/AP)4

5. Methodology4

5. 1 ) Internal evaluation (TK/MC)4

5. 2 . Fiancial analysis(AP) 4

5. a few. External analysis(TK/IN)5

5. four. Strategy establishing (PC/IN)5

6. Conclusion(MC/AP)6

six. Sources(TK/MC/AP/PC/IN)6

almost 8. References(TK/MC/AP/PC/IN)6

1 ) Introduction

Since an international apparel company in Sweden, H& M applies great affect on every area of the world. While using biggest industry size inside the U. S i9000., they have one of the most dominant market status in Denmark, the neighbouring Scandinavian country. 1 With H& M's rapidity of adjusting itself for the latest design and low cost, H& Meters counts to get market share of 10. 1%, the highest, in Denmark. a couple of Now, you will find 94 H& M shops in Denmark including five newly opened up stores in 2012. Every year, H& M can be opening coming from 10% to 15% more stores. Considering the growth rate, H& Meters is supposed to take even more market share inside the coming years. 1 installment payments on your Problem field

The financial crisis2 coming from 2008 to 2009 hugely influenced the Danish apparel industry. Despite the fact that there has been a tiny growth of GROSS DOMESTIC PRODUCT in 2010 and 2011 by simply 1 . 6% and 1 ) 1% respectively3, the situation is actually serious to get covered by these small advantages. A new tax reform by the Danish govt came into power to encourage employment and buy. 4 Nevertheless , Danish persons became more price-sensitive and in addition they have reduced the costs on clothes. Real every capita costs on apparel has decreased by 3. 4% coming from 2006 to 2011. your five Despite the vulnerability of clothing to income effect, as a result of its low price and internet retailing, H& M has made sales growths. However , the expansion rate can be stagnating lately. 1 Pricing competition is usually getting bigger. Sportswear gets the key. According to Western european Commission, Denmark shows the 3rd highest work out regularity of adults in Europe. 6th As proven in many reviews, Danish people are enthusiastic intended for running and fitness in search of hectic way of life. Also, regardless of the financial crisis, the sales progress shows great figures. Specifically, performance apparel and shoes shows the expansion of 4. 5% and 4. 7% respectively while the whole apparel industry features fallen straight down. 7 Also, the prediction shows regarding 15. 3% and sixteen. 1% for the people two groups by 2017. 7 Today, Nike, Adidas and Hummel are taking over the Danish sportswear marketplace with market shares of 14. 4%, 13. 4% and 12. 1% with high brand image. several H& Meters has only 4. 4% in 2012 without any growth to get 5 years. 7 To get H& M, sportswear can be an obvious goal to reach to get expanding it is market share in Denmark. several. Problem assertion

How can H& M enhance its business from some. 4% to 15% in performance attire in Denmark for Danish adults from 20 to 50 inside 3 years? Precisely what are advantages and disadvantages of today's H& M intended for sportswear business? Is H& M financially healthy to compliment the sportswear business? What should be increased for the H& M's existing sportswear operations? What would be the most effective strategy for H& M against Nike, Adidas and Hummel? 4. Delimitation

Sportswear advises a big chance to H& M and especially, efficiency apparel displays amazing expansion figures and forecast. Therefore , our concentrate will be in performance clothing. Furthermore, Danish adults demonstrate highest excitement for activities, so the target will be Danish adults from twenty to 5 decades old. Mainly because our aim is to take market stocks from major players in...

References: [1] H& Meters Annual Report 2012, H& M, 2012

[2] Apparel in Denmark, Euromonitor International, April 2013

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