Fast Fashion Brand Clothing: The Success Of H & M

The reason why H&M can sweep across the streets of Europe is the three in one philosophy and the policy of positive expansion that takes into account the popularity, quality and price.

H&M copied the three in one formula successfully to other markets.

Although H&M is from Sweden, the largest market is in Germany.

According to Forbes magazine, in 1982, when Pearson took the company from his father, H&M had only more than 100 branches, and most of them were in Sweden. Forbes

Today, the company's ambition has been burning from Europe to the Americas, with more than 800 branches in fourteen countries, and 88% of its turnover last year.

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The number of new stores opened in 2003 is expected to reach ninety.

The expansion rate of the company in the past 6 years is about 75%, and the goal now is to enter a new country every two years.

In April 12th, the Swedish fashion giant H&M brand store officially opened in Huaihailu Road, Shanghai. According to H&M, its single store turnover has reached a maximum of 2 million yuan per day, which is equivalent to the total sales of 200 Chinese clothing brands.

Keith Wills, an American retail market analyst, commented: "no European retailer can expand abroad so rapidly and successfully."

After joining the company in 1972, he hoped that the company would be able to add popularity and quality characteristics beyond its sole low price.

Although many people believe that these characteristics can not exist in a brand at the same time, Pearson believes that the company can do it.

Then H&M 's "best price, popularity and quality" is a real shot in the company's success.

Pearson said in a recent interview that his father had questioned whether the expansion policy of the company had gone too far. Sometimes he would ask Pearson, "Why are you so anxious?" after all, his father set up the first foreign branch in London 29 years after he founded the company.

Pearson said that the answer he gave his father was very simple, that is, "when you are hot, you can not stop to cool the heat."

Besides strategy, the execution of details is also an indispensable factor for H&M's success.

Nathan Cockrell, a retail analyst in London, said: "the way H&M is run is by comparison."

Pearson looks and talks more like a financial expert than he does.

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He controls the company's expenditure in person.

In order to reduce costs, in 1990s, Pearson even confiscated his staff's mobile phone. Nowadays, only a few top executives in the company have mobile phones, and companies encourage employees to take business class and taxis only in exceptional circumstances.

Although it is necessary to save money in small areas, the company is willing to do so in matters of great importance.

The company believes that shopping at H&M must be very easy and interesting, so the company attaches great importance to store design and product layout details.

For example, the message conveyed by the window display, the information on the clothes, the design of the changing room, etc.

In order to make it easy for customers to find the storefront, the company will find the best location at any cost without planning the location of the new branch.