H&M'S Perfume Rule

Before 2010, I visited Stockholm, Sweden, and I talked with H&M designers about fashion in an inconspicuous building. It's impossible for designer Alber Elbaz of Lanvin.

The high-end

Until one day, H&M's Margarita.

Fan.

Deng.

Bosch (Margareta van den Bosch) himself went to the door and told him that H&M was on the way.

Find the hottest designer, create the exclusive series of H&M, and then in about 20 days, let a H&M fashion appear in nearly 2000 stores around the world, and then sell at a low price, this is the way of H&M.

Unlike ZARA, the following is the list of design gurus working with H&M, Carle.

Lagfield Karl Lagerfeld (Chanel), Stella McCartney, Wakubo Rei (Comme des Garons) and Sonia Rykiel.

This is similar to the "Chanel perfume rules" was found by Stephen.

Parson (Stefan Persson).

In 1982, he took over from his father, Aileen.

Parson (Erling Persson), a company founded by itself.

At that time, H&M was playing the role of parity. Stephen thought that the threshold for doing so was very low and could not last long.

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Inspired by this story, Stephen decided that H&M would become a consumer product of Chanel perfume and become a shortcut for thousands of people to get close to luxuries.

What distinguishes Chanel from the classic fashion is that there is a way to save cost and brand.

Stephen is betting on working with the world's top designers.

Stephen is right.

Almost every time the H&M brand store is officially opened, the team has to queue for 30 minutes and try to dress for 30 minutes.

According to H&M, a single store in Shanghai has a maximum turnover of more than 2 million yuan per day, equivalent to the total sales of 200 Chinese clothing brands.

This is only one of the secrets of H&M.

As we all know, the most painful and time-consuming thing for clothing industry is to accurately predict the trend and trend of fashion.

As a Swedish company far away from the fashion circle, Stephen believes that there is no need to predict trends and trends. For non master merchandise, which clothing elements should be most popular with consumers, large quantities of market data can be quickly and accurately reflected in the design team, and then cooperate with the factory to maximize sales.

In the late 1980s, many fashion people liked to believe that the fashion industry was equivalent to design, tailoring, color matching, and new clothes for models - all of which were artistic work - based on creativity rather than commercial operation.

However, Stephen and some of the early fashion industry professionals believe that the dominant designer is only a small part.

Fast fashion industry is a popular consumer experience driven industry. Behind it is business management and operation, including product marketing, company image positioning, cooperation with factories, various forms, not just fashion media support, but all these links should be linked up by "fast".

Compared with ZARA, the leading time of H&M (leadtime, that is, the time from design to sale) is bidirectional control.

Data show that the leading time of ZARA is 15 days, and the leading time of H&M is 20 days.

The cost of these 5 days saved nearly 30% of the cost for H&M.

The fact is that Stephen has always advocated the cost leadership effect.

When every new employee comes in, the trainer will tell the new employee a little story.

In 1967, when H&M first expanded abroad, its first store opened in London. Stephen, 29, was carrying a pile of ABBA records on the streets to attract customers.

The fact is that the "vanity culture" that has always been dedicated to this kind of work has been running through the development of the whole H&M.

For example, a company with a market capitalization of nearly 7 billion dollars will be allowed to reserve first class seats unless there is an emergency.

In the late 80s of last century, Carle was the most talked about event in Europe.

Lagerfeld (Karl Lagerfeld) how to save Chanel brand story.

"At that time, Chanel was a sleeping beauty, or simply not a beauty, because she snored regularly during her sleep."

Lagerfeld made the design reform: cut the skirt of Chanel chiffon dress, add bright and exaggerated jewelry to it.

However, after such a radical reform, only a very small number of women can afford Chanel dress.

Lagerfeld decided to make some innovations in order to make more people contact Chanel.

Carle.

Why does Chanel not produce perfume, make-up or sunglasses, Lagerfeld suggests?

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Stephen has long been ambitions for ambitious expansion plans, including finding partners in China, opening stores at home and abroad, and making H&M a global brand.

These ideas seemed very remote, but soon Stephen found the power engine or company structure to realize his dream.

Since then, H&M has established production sites in Scandinavia, southern Europe and East Asia, but it does not own its own factories. It has outsourced production to more than 700 independent suppliers in 22 countries in Eurasia.

In order to establish close ties with these suppliers, H&M has set up production offices in the production area, and many of its staff are proficient hands in the location of deep ploughing plants. They are H&M's internal purchasing agents, handling the relationship with suppliers, and developing new suppliers.

At present, nearly 60% of H&M production is in Asia, and the rest in Europe.

The criteria for deciding where to produce are the size and popularity of the volume, the amount of clothing that is small and popular, usually to European suppliers.

Stephen's top management team designed two supply chains for H&M: to control the "efficient" supply chain of Asian production and to control the "fast" reaction supply chain of European production.

For Asian suppliers who make basic styles, H&M's efficient supply chain strategy is to minimize the cost while satisfying product supply.

At ordinary times, communication between H&M and Asian suppliers is often carried out through email.

For example, in this supply chain, H&M will send design drawings to suppliers through email, make samples from suppliers, return them to headquarters for confirmation, and propose amendments to return.

Then, suppliers began to produce sales samples, about more than 20 pieces, once again confirmed correctly before mass production.

In 1982, at the beginning of Stephen's performance, H&M had only more than 100 branches, and most of them were in Sweden.

Today, from Europe to America, H&M has more than 1400 branches in 14 countries. Nearly 90% of its turnover last year came from outside Sweden.

Keith Wills, an American retail market analyst, commented: "few European retailers have been able to expand rapidly and successfully abroad."

But when Stephen visited business week, his father asked him, "is this expansion too much?"

Why are you in such a hurry? "

Stephen's answer is simple: "when you are hot, you can't stop to cool the heat."

In 2009, Stephen's son, Carle John.

Parson (Karl-Johan Persson) became CEO of H&M company.

He continued his father's style of expansion.

In those days, he led the world's third largest clothing chain corporation to Russia, South Korea and other new markets, and H&M opened 250 new stores in the year.

In 2011, H&M paid a price for such rapid expansion.

In early April, the company announced its first quarter earnings in 2011.

Data showed that the net profit of the company decreased 30% to 2 billion 620 million Swedish kronor (415 million US dollars) in the quarter compared with the same period last year. The net profit of the company was 3 billion 740 million kronor in the same period last year.

The father and son believed that H&M's first quarter profit decline was due to higher costs and the strength of the Swedish kronor.

They said that cotton prices rose sharply, surplus capacity was reduced, pportation costs were higher, and the US dollar had adverse effects. These factors led to its gross profit margin in the first quarter of this year dropped from 61.9% in the same period last year to 57.8%.. However, the most worrying thing is that sales in February increased by 9% over the same period last year, while sales from March 1st to March 29th increased by only 3%. compared with the same period last year. This also led to the plan to open 97 stores and close 8 stores in the second quarter of this year.

Carle John, 35 years old.

Parson was not affected by these bad news.

Once, Stephen asked him privately, what are the countermeasures?

Carle John studied Stephen's tone and said, "we are still hot."