H&M
- Some of the barriers that arose
H&M, a Swedish retailer Company, has enjoyed a growth of 20 percent for decades and presently has nearly thousand stores worldwide. However, it is important to note some of the barriers that the multi-national Company faced in its course of business. Some of the barriers that arose include:
- Popular Brands of Clothes
H&M Company suffered from the problem of popular brands of clothes that were being stocked by well-established companies. The problem was more serious especially during the initial stages of the company’s business since by then the company was not popular like its competitors. The company had also not carried out enough promotions to popularize its brands and itself (Hm.com, 2014).
- High Level of Competition in the Industry
The company also faced and still faces a high competition level that is present in the clothing industry. Some of the major competitors of H&M Company include Zara, Forever 21, Express and NY&C. These companies store nearly all brands of clothes that are stored by H&M Company (Hoovers.com, 2014).
- Government Policies
The other barrier that H&M faced was the strict government policies in countries where it opted to have its stores. For instance, in US the company had to abide by all the government policies for it to have its stores based in the country.
- Unfriendly Business Environment
H&M also faced unfriendly business environment in the countries where it chose to open up its stores. For example, in the US alone the company had to endure unfriendly customers besides abiding with the strict governmental policies regarding business operations (Hm.com, 2014).
- Were the barriers overcome?
- Stocking trendy brands
The Company overcame the barriers through stocking trendy fast fashion clothes. Approximately 25 percent of the H&M stock is composed of brands that turn over quickly. The objective was to have something new in the store every day (Hm.com, 2014).
- Selling at lower Price
In order to overcome the barriers, H&M sold its products even at a lower price than some of its major competitors such as Zara.
- Using designer and Celebrities brands
The company also applied designer brands in order to overcome its barriers. For example, the company used the Italian designer Roberto Cavalli and the Parisian designer Sonia Rekeil to develop their clothing lines. The company also used celebrities such as singer Kylie Minogue and Madonna to develop their clothing lines (Hm.com, 2014).
- Using fashion magazine
H&M has also used fashion magazine to overcome the barriers that arose. For instance, the company put a fashion magazine Elle endorsed items at the front of its US stores in order to provide credibility and interest (Hm.com, 2014).
- The outcome
As a result of H&M overcoming most of the barriers that arose in the course of its business operations, the company has so far benefitted a lot. For example, it has experienced a stunning growth rate in the last twenty-five years. The H&M value proposition surrounding fast fashion-namely the latest fashion at a lower price and a continuously new product profile in stores had a stronger attraction among the clothes buying segments. Additionally, its supply chain that delivers speed and low cost and their fashion sensitively represents fierce barriers to other clothing retailers (Hm.com, 2014).
References
Hm.com,. (2014). H&M | H&M US. Retrieved 12 November 2014, from http://www.hm.com/us/
Hm.com,. (2014). H&M offers fashion and quality at the best price. Retrieved 12 November 2014, from http://www.hm.com
Hoovers.com,. (2014). Competitors of H&M. Retrieved 12 November 2014, from http://www.hoovers.com//competition.
