Hennes and Mauritz

Expansion
Universite Ctholique de ouvin
Louvain School of Management

Grace Habberfield
Karen Onate
Alyssa Sullivan


Pr. F. Pouchain
Pr. C. Brognaux

Table of Contents


EXECUTIVE SUMMARY
I. MARKET ANALYSIS
A. POLITICAL AND LEGAL FACTORS
B. ECONOMIC FACTORS
C. SOCIAL FACTORS
D. TECHNOLOGICAL FACTORS
E. ENVIRONMENTAL FACTORS
F. KEY DRIVERS
II. SECTORS & COMPETITORS
A. PORTERS 5 FORCES
1. THREAT OF SUBSTITUTES
2. RIVALRY AMONG COMPETING SELLERS
3. POWER OF SUPPLIERS
4. POWER OF RETAILERS/CONSUMERS
5. COMPETITIVE FORCES OF NEW ENTRANTS
III. COMPETITION AND THE MARKET IN THE UNITED STATES
A. STRATEGIC GROUPS
B. MARKET SEGMENTS
C. CRITICAL SUCCESS FACTORS
IV. HENNES & MAURTIZ
A. GENERAL DESCRIPTION OF HENNES & MAURITZ
B. HENNES & MAURITZ SWOT ANALYSIS
V. RECOMMENDATIONS
CONCLUSIONS
FIGURES
BIBLIOGRAPHY








EXECUTIVE SUMMARY

The fashion industry is one of the highest grossing industries in the world. The United
States is generally viewed as a global trendsetter in the fashion world, but American
consumers hold foreign fashion houses in high regard, as well as domestic fashion
houses. Specifically, consumers in the United States hold European fashion houses in
high regard. Despite the small number of H&M stores currently open in the United
States, H&M has a strong following in the states.
For the US fashion industry, the following key drivers were found:
Economic growth
Brand preferences
Retail improvements
In the Porter analysis, it was found that the American fashion industry is highly
competitive. Few substitutes exist for H&Ms retil strtegy, but there re numerous
potential substitutes for the company itself. The power of suppliers to H&M is moderate.
The risk of new entrnts to the mrket is extremely high, nd, thnks to the compnys
self-reliance, the bargaining power of retailers and consumers is only moderate.
The fashion industry is divided into five market segments: haute couture, luxury,
affordable luxury, mainstream, and discount. H&M seeks to insert itself into the
minstrem segment of the United Sttes fshion industry, nd lso to differentite
itself from the other foreign brands already present in the market.
It is our recommendation that H&M expand further into the United States,
despite the strong competition from already established brands. In particular, we feel
that expanding further into the southeastern region of the United States would prove to
be a lucrative investment for H&M. Through a reevaluation of its customer base,
strategic collaborations with southern designers, and providing an online catalog and
shopping feature to its website, H&M has a chance to expand its business and increase
profits in the United States.
INTRODUCTION
Established in 1947, Hennes and Maurtiz or H&M has become a very successful
Swedish based fashion group. Their success has been based off their expansion not only
into many countries, but also the expansion of their lines. H&M offers a variety of
clothing options for women, men, children, nd teengers. H&Ms promise to provide
fashionable garments of high quality and low prices has allowed for and ease of
expansion into new areas and markets.
With this talent for expansion, H&M strategized the growth of their company
around the world. Today H&M headquarters is located in Stockholm, Sweden, with a
large presence in Europe, North America, Asia and over 33 countries. In this paper we
will analyze and suggest new ideas for this company to allow a larger turning of profit
and expansion into foreign markets.
Hennes & Mauritz for several years has for the most part been an extremely
prevalent fashion house in Europe, used mostly by the 15-25 year old age range. With
their expansion into Menswer nd Childrens wer s well s developments in
accessories, shoes, and cosmetics, H&M has been able to remain a front-runner in
control of the fashion industry.
Most recently H&M have begun expansion into China using their influence
already well placed from other Asian countries as well as into Romania using their large
European influence. What we propose for H&M is the expansion more so across the
United States. Currently H&M has already established stores in the United States
centralizing in California and New York, but we believe that it would be poignant to
expand into the Southern region of the United States.

I. MARKET ANALYSIS

A. POLITICAL AND LEGAL FACTORS

Hennes and Mauritz have experienced their fair share of political and legal problems
and accusations with the expansion into foreign markets. Most recently problems in
certain Middle Eastern countries because of the cultural differences associated with
dress. H&M found ways around that by deciding to operate through franchising
methods.
26
This will not be as much of a problem in the United States because of the
already popular stores based mostly on the Northern East Coast. This expansion will not
have any serious entry barriers into the Southern market. However, there might be
opposition to the entry of this fashion house because of the methodology in the
production. H&M has recently faced accusations of using sweatshops in their clothing
production as well as child labor.
28
This issue was addressed most recently in their
Conscious Actions Sustainability Report, while neither denying nor verifying their use of
child labor in Bangladesh; the company seems to have taken a firm stand against it.
While this is the best way for this problem to be handled, public outcry in the United
States has been evident and this may be an issue faced when trying to enter into the
new markets in the Southern United States where family values are core values.

B. ECONOMIC FACTORS

The Southeastern United States in the past several years has experienced a
massive economic boom. This is due to many foreign investors coming into areas and
building up manufacturing and the service sector economies. The Southeastern United
States is one of the most populated regions in the US, with over 18 million people living
in Florida. This means that the Southeast is a prime target for investment with major
cities including Miami, Atlanta and Tampa. Not to forget to mention also some of the
fastest growing and expanding cities in the country are in the Southeast including
Charlotte and Raleigh, North Carolina.

C. SOCIAL FACTORS

The South will seemingly be the hardest market to break into in the United States
simply because of regional expenditure and income being the lowest in the nation.
According to the U.S. Bureau of Labor Statistics Consumer Expenditure Survey from
2009, the South has the highest number of consumer units (in thousands) with 43, 819.
However, the average income before taxes is the lowest in the nation at $58,641. On the
bright side with the average annual expenditure of $45,749, the South has the highest
percentage expenditure of income making it a prime location.
Some issues that H&M will encounter socially are the whiplash caused by the
accusation of throwing away clothes. The Southern United States for the past 20 years
have had higher poverty rates than any other region in the United States according to
the Population Reference Bureau. With the accusation that clothes that had been unused
or unsold were being thrown out t the end of tht items seson might cuse some
outrage by activist groups based in the United States. On a positive note however, in a
move to potentially boost the company in the eyes of the communities in the South,
H&M should have the ability to either start donating or selling the clothing at lower
prices to outlet stores in the area. This would help encourage the decreasing poverty
levels in the South, the only region in the United States that has experienced this
decrease.
Another social factor that H&M might have to deal with is their cotton
outsourcing. The Southern United States is the largest cotton-producing region in the US
with the US being the Worlds second lrgest cotton producer. H&M hs come into
scrutiny for the use of child labor in Uzbekistan in their supply chain, but also the issue
of organically grown cotton has been a problem. Cotton farmers in the South might have
issues with H&Ms Orgnic Cotton Mix nd boycott the compny.
14

H&Ms lrgest trget mrket s of right now is the lrgest percentage of the
population in the South making it a good target. From the ages of 18-44, from the U.S.
Census Bureau, the projection numbers from 2010 have these ages making up around
36.3% of the Southern population. As of recently, it can be seen in children and young
adults wanting to look and dress more fashionable, which has caused extreme success
in the South for several major brands including Forever 21, Wet Seal, and even higher
end Southern Proper.

D. TECHNOLOGICAL FACTORS

Technology should be no major problem for H&M in the United States. The South
is accredited for, in recent years, having an enormous boom in high technology
industries specifically in Virginia with 50% of the science and engineering labor force
employed in information technology. While having probably a lesser-developed
infrastructure in the south, the United States has extremely able distribution systems,
especially in the South with several major freights and truck business located there.

E. ENVIRONMENTAL FACTORS

The Southern United States having a much different environment may cause
some problem. With a noticeably and statistically warmer environment, the winters do
not reach the cold levels of many of the European nations. This means that H&M would
have to be able to provide more light winter options and more summer options in their
clothing lines for this particular region. However, any stores in Southern California will
have to have similar merchandise so matching the two would work just fine.

F. KEY DRIVERS

Economic Growth: The Southern United States at the moment is experiencing some of
the highest economic growth in the Nation. This is leading to more disposable income
and higher expenditure. The poverty levels are dropping and the middle and upper class
is expanding. This is especially true in regions that have become bases for many
international companies.
Brand preferences: The main target age and target sex market for H&M is an
extremely large portion of the population in the Southern United States. This means that
the products should be set up for a large amount of consumers. This age group has
become more preferential to certain fashion styles and a company that has done
extremely well in the United States fashion capitals (New York and Los Angeles) will
perform well in almost any region. Also with the increase of foreign investors and
businesses in the Southern United States, H&M will have the ability to provide a brand
name with already positive connotations from their homes abroad.
Retail improvements: With the economy on an upswing from the recession, the
demand for apparel and woolen or cotton textiles has been increasing exponentially.
2
The economic growth of 2010 has shown the demand for new clothing lines has not
slowed. With a drop in apparel expenditure of 4.2 % overall in the United States in
2009, 2011 would be a tactful year to open new stores with the economy and
expenditure rising.

II. SECTORS & COMPETITORS

A. PORTERS 5 FORCES


1. THREAT OF SUBSTITUTES

The substitutes for the industry in which H&M is placed are various. Since H&M
works mostly out of physical retail space, the appropriate substitutes for the retail
apparel, which will be shortened to just retail industry, would be relatively small. Those
substitutes would include factory stores, homemade clothes, tailoring, catalogs, and
online clothes stores.
41
Although the online substitute usully is n ddition to stores
resources in selling options, in H&Ms cse, since online retiling is still not offered to
the United States audience, this could pose a potential problem.
As for the substitutes in the apparel industry itself, there are many other options
since the market itself is fairly fragmented. This means that the apparel market is
comprised of many different retailers who all essentially sell clothes.
This lack in diversity in clothes makes for a high threat of substitutes in the
apparel industry.


2. RIVALRY AMONG COMPETING SELLERS

A closer look into the specific submarket of highly fashionable but cost conscience
clothes retailing, like that which is H&M, shows that the substitutes in this submarket
are prominent and easily accessible all over the world. Other low costs, fashionable
stores in the United States that are more established than H&M and therefore are
formidable substitutes are those like Charlotte Russe, WetSeal, and Forever 21.
In recent years, a fragmented market and moderate growth in the retail industry
hve incurred high level of rivlry. The womens wer mrket, which is wht H&M nd
its competitors focus most on, is forecast to have a value of $176.9 billion in 2014 in the
United States, which will be a 9.4% increase since 2009.
41
This will mean an increase in
desire for stores to gain a share of the market value and therefore, an increase in rivalry.
All in all, the rivalry among competing sellers is relatively high.


3. POWER OF SUPPLIERS

In the retail industry, there are many different materials used to make the apparel in
which are included cotton, rayon, and silk. According to David Bassuk, retail managing
director of AlixPrtners, Rw mterils ccount for 25 percent to 50 percent of the cost
of producing a garment. Labor ranges from 20 percent to 40 percent, depending on how
complicted it is to mke.
29

There are no substitutes for the fabrics used in different types of articles of
clothing, which gives certain power to the suppliers of these fabrics. However, since
there are many suppliers all over the world and some are less expensive than other,
globalization has decreased the power of suppliers in this industry. For example, China
is the lrgest producer of cotton but it does most of its production t home for much
lower cost than the United States even though the United States is the second largest
producer of cotton and the largest exporter worldwide, exporting 40 to 60% of its
production.
1
In the United States, prices of cotton have doubled while other fabric prices
have jumped by at least 50%, which gives more power to the suppliers as well.
29

In the end, the power of suppliers is moderate.


4. POWER OF RETAILERS/CONSUMERS

In general, in the apparel retail market, the buyer power of actual consumers, in this
case being all the individuals who actually buy the clothes to use them, is considered
moderate. Although there are thousands of people throughout the world who buy
clothes which in turn lessens customer power, the fact that they tend to be brand loyal
and want trendy fashions increases their power because the retailers have to give them
what they want in the time frame within which the clothing is still in style and wanted
by the consumers. If not given what demanded, the cost of switching substitutes for
consumers is low because of the similarity of the stores and products in the industry.
20

Depending on the region of the country, certain regions have less of a brand
loyalty because the biggest concern is the sole function of clothes while in other regions,
where there are more affluent customers, brand loyalty does play a role in the apparel
retail industry giving customers more power.
20

H&M is a self-owned store that doesnt rely on outer retilers but rther uses
their own retail stores throughout the countries where they have a presence.
Franchising is also done by H&M and since a franchise is directly related to the
company, it has little retail power as well. This would make the power of retailers as
buyers slim to none because of H&M being themselves who control the sell of their
products. Selling out of style and unsold clothes to discount retailers, like Ross or TJ
Maxx, would increase retailer power slightly but the bargaining power H&M would have
over the discount stores would override the retilers power nd give it bck to H&M.
Overall, the bargaining power of retailers and customers is moderate.


5. COMPETITIVE FORCES OF NEW ENTRANTS

Many people can start a clothes making business, which increases the possibilities of
new entrants because even those who work out of their houses can easily obtain the
necessary capital needed to make clothes. However, economies of scale are an
important part of the clothing retail market and the entry into a large, international
selling sector the capital needed is at a higher level.
20

Already well established companies have an easier time with selling their
products at lower prices then those of individual boutiques and designers because of
the multiple retail outlets and greater negotiating power with suppliers, although they
are also held more accountable for Social Corporate Responsibilities, like no child labor,
or there is a risk of losing a lot of customers if not cautious of complying with these
social rules.
Absolute cost dvntge cn be reduced through the implementtion of new
technologies, cheper inputs, skilled workforce, nd wste reduction.
40
This is easily
achievable in the retail apparel industry although one company can have the advantage
only until other companies start mimicking the process.
All in all, thanks to low entry barriers, low capital requirements, and easily
overridden cost advantages, the competitive force of new entrants is high.




III. COMPETITION AND THE MARKET IN THE UNITED STATES

A. STRATEGIC GROUPS

In 2010, over 100,000 stores made up the fashion industry in the United States.
24
The
largest fifty companies account for more than half of industry revenue. These top fifty
companies take sixty-five percent of industry revenue. The top five companies in the
American retail industry are all foreign brands, and include such names as Sainsburys
from London, and LVMH, which is based in Paris, France. Three of the top five
companies are French, and the other two are based in the United Kingdom.
24

The fashion industry is divided into five segments: haute couture, luxury,
affordable luxury, mainstream, and discount. Each segment can be further divided in
terms of price, exclusivity, and quality.
B. MARKET SEGMENTS

As previously mentioned, the fashion industry is divided into five market segments.
Haute couture is the smallest segment and caters to the wealthiest clientele with brand
names such as Christian Dior, Chanel, and Givenchy. It focuses on quality rather than
quantity and makes few, custom pieces. These pieces, however, may sell for as much as
$25,000 each. Products sold as luxury brand are also expensive, though not as much as
haute couture products, and still serve a wealthy clientele with designer names Gucci
and Herms. Affordable luxury products can be seen as substitute products for luxury
brands. Affordable luxury brands such as Coach, Nordstrom, and Hugo Boss provide
high-end products at lower prices for those not wealthy enough to afford luxury brand
names.
11

Mainstream designers lack the feel of exclusivity that luxury and haute couture
labels afford, and focus on quantity rather than quality. These brands are immensely
popular with the American middle class because of their affordability and availability.
Labels that fall under the mainstream umbrella include American Eagle, Gap, and
Abercrombie & Fitch. The discount segment includes stores tht sell other brnds
products at reduced prices as well as brands that price their products below similar
products from the other market segments. The discount segment caters to low-income
customers with brands such as Target, Cato and Payless.
11

H&M would belong to the mainstream segment. Brands in the mainstream
segment price their products lower than the luxury segments. Mainstream brands are
perceived as having lesser quality than luxury brands. Fashion houses in the
mainstream segment earn less money per garment than the luxury segment and
therefore focus on moving volume. Because they are both cheaper and more available
than luxury product markets, mainstream brands appeal to both the middle and lower
classes.
11


C. CRITICAL SUCCESS FACTORS

In 2008, 94% of Americans had made purchases over the Internet, and 41% of online
shoppers in the US had bought clothing over the Internet.
35
H&M currently does offer
online shoppingbut it is only available in certain European countries.
19
In early 2011,
H&M announced via Twitter that they would be making online shopping available in the
US at the turn of 2011 and 2012.
38

The average size of the female American consumer is a 14, and 14 is the largest
size crried in store by severl of H&Ms competitors in the mainstream market
segment, such as American Eagle. H&M currently offers a plus-sized clothing line, BiB,
but it is not vilble in US stores. BiB is vilble on H&Ms website, but H&M does not
ship to the US.
22
As 30% of the female population in the United States wears a size 12-16
and 48% of women wear over a size 12, in order to maximize their profit in the United
States, H&M would do well to either extend the sizes available in their stores or begin
shipping their BiB line to the United States.
3


IV. HENNES & MAURTIZ


A. GENERAL DESCRIPTION OF HENNES & MAURITZ

Hennes and Maurtiz, commonly known as H&M, is a Swedish based company
established in 1947 in Vsters, Sweden by Erling Persson. The original name of the
company was Hennes, which mens hers in Swedish, becuse t the beginning only
womens clothing ws sold. In 1969, Persson obtined hold of nother store clled
Mauritz Widforss, that sold menswear, and subsequently the company was renamed
Hennes nd Muritz nd begn to sell mens clothes s well. Now, their product
portfolio hs expnded even more to include teenger nd childrens clothes, cosmetics,
footwear, and accessories through their 2,200 stores in 40 countries around the world
with different brands like COS, Monki, Weekday, and Cheap Monday.
19

During the financial year ended November 2009, Hennes and Mauritz recorded
revenues of SEK 118,697 million, an increase of 14.1% over 2008. 100% of its revenues
came from the clothing and cosmetics business division. H&Ms lrgest geogrphicl
market as of 2009 is the Euro zone, excluding Finland. This market reached SEK57, 229
million in 2009, an increase of 14.5% over 2008.
20

H&M is a very unique company in the way that it operates and treats its
customers, employees, and handles its distribution. Through the financial economic
crisis all over the world, H&M has been able to continue their success and keep from
crashing like other international companies thanks to these small yet critical factors. In
fact, one of their continuous goals is to continue to increase the number of stores every
year by internal funding.
30

More stores means more employees and this is something that H&M takes very
seriously and uses to its advantage. Human resources are looked at more like an asset
rather than cost of wages. There is a fundamental respect for the employees and various
options to help the continuous development of said employees. They are given the
chance to work abroad, continue their studies, do job rotations, and apply their minds to
solve problems within the compny. All of this enbles the compny to grow quickly,
quote from Hed of HR t H&M Mr. Pr Drj. He lso sys to employees, If you do not
grow neither will H&M.
30

Some thing else that has helped H&M stay afloat during the economic downturn
is its innovative supply chain management. Unlike most companies who distribute
clothes everywhere, including places where there is no demand for the clothes, H&M
has a specific core and non-core strategy to reduce the cost of production and sunk
costs. First, the clothes are designed in a centralized location in Stockholm, Sweden by
almost 100 in house designers who look at trends on the runway and on the streets.
Because H&M does not have one single factory of its own, production is then outsourced
to a number of independent suppliers in Asia and Europe. Clothes with higher lead
times are produced in Asia while those in high demand are produced in Europe. Lastly,
the clothes are sent to the storage and distribution warehouse in Hamburg, Germany
where it is sent to the various local distribution centers near H&M presence. Based on
the demand in certain areas, either more or less of a certain clothes are sent to the site.
25
The compny hs been known becuse of its strtegy of providing clothing designs
exclusively for ech countries preferences nd needs.
21


B. HENNES & MAURITZ SWOT ANALYSIS


Strengths and Weaknesses

H&Ms strengths lie in the low cost of production tht they hve due to locl
partnerships and the cutting of the middleman. This carries over the savings to the
consumers who, enjoying low prices, return for more. H&M also profits from a well-
established brand name, relatively good perceived value, and good employee relations.
Its weknesss include no available online shopping for the United States customer base
even though online shopping is becoming increasingly popular.
20


Opportunities and Threats

Since H&M stores are few and sparse in the United States; there is a large
opportunity for growth allowance in the United States. The opportunity to add online
shopping in the United States is also another opportunity that can also be considered a
threat as it could propel some consumers to turn to substitute stores. One of the largest
opportunities for H&M is that it can offer and reach the particular niche market of
organic marketing. It is well on its way to conquering this market with already all
organic makeup, organic soaps, and the use of organic cotton in their clothes.
20
Hennes
and Mauritz threats are the bad publicity done by rumors of bad social corporate
responsibility, like the use of child labor, and throwing away and ripping unsold clothes
so they would not be copied. Also, the main population that H&M is trying to reach, the
young adults, has less spending power thanks to a hurt economy and unemployment.
20

V. RECOMMENDATIONS

Hennes & Maurtiz already is an extremely prominent fashion group that has
become incredibly popular over the past several years. This is because of the rising
amount of the population of young adults that this brand specifically targets and the
ability of H&M to be able to move and open new stores extremely easily. H&M has taken
steps to becoming a worldwide known brand and fashion label, especially with their
collaborations with high end lines such as Lanvin. H&M currently has stores across the
globe and has been extremely profitable over the last few years with the expansion into
menswear, clothing for children, and accessories. There are minimal areas that this
brand has not largely expanded into, but there are regions of the United States that have
barely been touched by this brand.
Without a doubt the competition in the United States is extremely high as far as
this particular market is concerned. With similar brands like Forever21, Gap, and Wet
Seal it will be extremely difficult to persuade patrons of these already established
organizations to move to H&M. However, because the cost of switching between these
different labels is minimal due to their similarly priced items, consumers will be more
likely to want to expand their brand knowledge. Entry into this market strictly
competition wise will be difficult, but if proper marketing strategies are applied to the
potential markets it will be successful.
The potential market proposed for H&Ms entry is into the Southern region of the
United States. In order to be competitive and successful, H&M will need to be able to
understnd the consumer groups in the different res of the region. The South has not
been broken into, as far as high end lines are concerned, except in Metropolitan cities
like Atlanta and Miami. So the collaborative lines that H&M has done and will likely
continue to do will sell extremely well allowing consumers to have access to the big
name lines for extremely reasonable prices. Price wise they are exactly the same as
probably their largest and most popular competitor in the South, Forever21, however
H&M offers much higher quality clothing items and the store is much less of a headache
to go into than the extremely disorganized Forever21. The target markets in the South
will likely be most popular in the young adult to child age range, which is probably a
much more conservative group of consumers than the markets they are used to in
California and New York. Due to there methods of import/exportation there will be no
major issues with distribution in the United States especially if the continue to use local
distribution methods.
In regards to marketing and the success of this brand in the Southern market,
there are a few possible scenarios:
Understand consumer culture: The southern United States is known
for being largely more conservative. In reference to fitting the clothing
to the consumer group, more conventional cuts and colors would
probably do better for the first few years of entry until the clientele
base is better established. No crazy prints.
Start more metropolitan and branch out: The South is notorious
for having extremely rural areas. By focusing on established/ growing
cities like Raleigh, NC the second fastest growing city in the nation
only to Austin, TX. From establish in the cities the brand will be able to
work its way into the suburbs and then rural areas of the south.
Local Distribution: There are several large freight companies based
in the south, using these local distributors will be cheaper and easier
for getting clothing lines out on time.
Appeal to the organic/ vegan sector: With a lot of organic farmers
based in the southern United States, organic wear has become
extremely popular. Expansion on this line would merit success.
Local Manufacturing: While already using sources from China and
Europe in manufacturing, to get a strong base local manufacturing in
the United States is a possibility. The United States is second in cotton
production in the world, this production largely based in the South. By
also manufacturing in the United States, this would allow potential
new consumers to gain more brand knowledge.
Strategic alliances with influential southern designers: Already
having collaborated with Lanvin, Karl Lagerfeld and Stella McCartney,
potentially partnering with more southern labels and brands like
Southern Proper, Lilly Pulitzer, and Guy Harvey, this would connect
with very lrge concentrted Southern consumer group, college
students/ fraternity and sorority members.
Expanding/ Creating online shopping: Online shopping is
absolutely a necessity now days for the consumer group that H&M
tries to reach; this would most definitely help the company maintain
stability in the Southern market.
CONCLUSIONS

The United States fashion industry is an attractive destination not only for
foreign companies, but for domestic endeavors as well. As mentioned in section three,
the top five companies in the American retail industry are all European companies.
Small domestic boutiques also make up a portion considerable of American retailers.
The smaller domestic companies do not match the commercial giants in profits, but
remain in business nonetheless. Apart from the domestic boutiques are larger
domesticlly owned compnies, such s H&Ms rivls Gp, Inc., Wet Sel, nd Forever21,
among others.
In the mainstream segment that H&M seeks to enter into, the majority, if not all
of the companies present are domestically owned. The international companies that
have already penetrated the US fashion industry remain concentrated mostly in the
luxury segments of the market, and domestic boutiques are subject to regional
preference, leaving plenty of room for H&M to expand its US sales and enhance its
presence in America.




FIGURES

Figure 1.
United States Womenswear market segmentation II: % share, by value, 2009

"Womenswear in United States." Datamonitor (2010): 1-41. Print.

Figure 2.
Forces driving competition in the Womenswear market in the United States, 2009

"Womenswear in United States." Datamonitor (2010): 1-41. Print.
Figure 3.
An illustrtion of H&Ms complementrities


Li, Jun, and MajaFrydrychowska. "The International Expansion of a Multinational
Company-- A Case Study of H&M." Thesis. Mlardalen University, 2008.
Mlardalen University, 19 June 2008. Web.
<hkr.diva-portal.org/smash/get/diva2:230949/FULLTEXT01>.








Figure 4.
Timeline milestones for H&M

Li, Jun, and MajaFrydrychowska. "The International Expansion of a Multinational
Company-- A Case Study of H&M." Thesis. Mlardalen University, 2008.
Mlardalen University, 19 June 2008. Web.
<hkr.diva-portal.org/smash/get/diva2:230949/FULLTEXT01>.

Figure 5.
Entrance into New Markets/ Countries

Li, Jun, and MajaFrydrychowska. "The International Expansion of a Multinational
Company-- A Case Study of H&M." Thesis. Mlardalen University, 2008.
Mlardalen University, 19 June 2008. Web.
<hkr.diva-portal.org/smash/get/diva2:230949/FULLTEXT01>.
Figure 6.
Market entries and International Operations of H&M in 2007

Li, Jun, and MajaFrydrychowska. "The International Expansion of a Multinational
Company-- A Case Study of H&M." Thesis. Mlardalen University, 2008.
Mlardalen University, 19 June 2008. Web.
<hkr.diva-portal.org/smash/get/diva2:230949/FULLTEXT01>.











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