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Hennes & Mauritz, 2012
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Reference: HBS-713512-E
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Year: 2000
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Number of pages: 26
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Geographic Setting: Sweden;Europe
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Publication Date: Jun 19, 2013
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Fecha de edición: Mar 5, 2014
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Source: HBSP (USA)
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Type of Document: Case
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Industry Setting: Apparel
Description
"In 2012, Hennes & Maurtiz (H&M) was the second-largest specialty apparel retailer in the world. Sales for fiscal 2012 were $18.1 billion and operating profits were $3.3 billion. H&M operated 2,776 stores, 93% of them outside its home base of Sweden. Over the past decade, H&M had passed Gap in sales, but the company had failed to keep up with Inditex's growth and its Spanish rival had larger sales and greater profitability than H&M. H&M had also lagged behind Inditex in supply pipeline speed, brand diversification, online retail presence, and expansion into China. Meanwhile, the world's leading hypermarket chains, including Wal-Mart and Tesco, were making significant headway in apparel and challenge H&M's basic clothing segment.
In 2012, CEO Karl-Johan Persson, grandson of the company's founder Erling Persson, promised increased expansion into underdeveloped markets, a stronger push to online retailing, and the launch of a major new retail brand. Whether Persson's plans were enough to catch up with Inditex remained to be seen."
In 2012, CEO Karl-Johan Persson, grandson of the company's founder Erling Persson, promised increased expansion into underdeveloped markets, a stronger push to online retailing, and the launch of a major new retail brand. Whether Persson's plans were enough to catch up with Inditex remained to be seen."