Trump card clothing H & M's "Fast Marketing" Road

M-type society, "Blue Ocean": the IKEA fashion industry April 12, 2008, the early morning of this day is unusually unusual, Shanghai Huaihai Zhong Road, long lines of dozens of meters long ago, both men, women and children, are excited Intolerant surging which waits for into the store to buy ... ..., is what makes people so crazy? There is no doubt that this is the world's cheap fashion trump card H & M debut in mainland China, the excitement of the show are telling you: it is not just a cheap fashion boutiques, but also a civilian fashion myth! It not only heralds a new round of shopping spree triggered by the combination of low-cost fashion, but also shows H & M's determination and strategy to formally enter the Chinese market. They look forward to looking forward to their Swedish IKEA business philosophy in the near future. Like the popularity of Nordic furniture in China, the wardrobe of young Chinese people is quickly occupied by the "multiple, parity, few" product laws. Japan's strategic management gurus research a large number of money that society began to M-type society. The so-called M-type society refers to the trend of globalization, the rich in the digital world to make money in the world, the rapid rise in wealth; the other hand, with the redistribution of resources because of the loss of competitiveness of the middle class and reduced to Middle and lower classes. The distribution of wealth in the entire community suddenly has a big gap in the middle. Like the fonts, the whole world is divided into three parts, the number of poor people on the left increases and the number of women on the right increases. The middle part of the "collapse." M-type social consumers began to go in two directions. And then the consumer market is also shifted to luxury and money in both directions. In luxury mode, consumers at a high price to buy high-quality and meet the emotional needs of products and services. In recent years, the increase in the amount of luxury goods in China has highlighted the market demand as such consumers. Second, in the saving mode, consumers look for low-priced products as much as possible. Because of the financial pressure on the other strata in the M-type society to make them prefer lower prices, they also have a strong desire to buy high-quality goods. In the M-type society, the characteristics of consumers have undergone significant changes. The poorer the poorer and the richer are, the more wealthy it has become in the M-type society. Both consumers have different characteristics of consumption: 1, the rich groups through some luxury goods to show their status, wealth, their belong to the community has become a minority of the many businesses compete for the crowd. Wharton's study of "The Wealth Under Gold Tower" also shows that businesses can also get more wealth out of most of society. 2, the emotional needs of the collapsed middle class. In the face of increasingly fierce competition in society, the middle class is faced with numerous social pressures such as mortgage loans, education and medical treatment. Under the condition of lack of social resources, the middle class begins to decline like the bottom of society. Their high level of education and pursuit of high quality of life, but with the decline in income, luxury goods have been out of reach for them, so turn to the pursuit of low-cost high-quality products. 3, gold tower contains huge wealth. At the other end of the M-society, that is, most people, there is a huge wealth of future businesses. The world now known as the BRIC, China, Brazil, Russia and India have become the new growth points for the world's enterprises. These countries are not at a period of rapid economic growth or are in a period of economic rejuvenation. Most of these countries are at the other end of the M-type society, but because of their large numbers, they have strong potential for consumption. This has become one of the salient features of the M-type society. H & M Fashion Group is to see the social structure of M-type society and consumer changes, seeking to find such a balance point, creating a "cheap fashion" apparel brand positioning. Its use of luxury and changeable fashion and quality parity with the public combined to achieve the same as McDonald's selling hamburgers trafficking "fashion"; through its designers to join, model endorsements, limited edition, etc. enhanced its high-end brand image, creating New competition in the fashion industry Blue Ocean. Through OEM, centralized logistics, shorten the cycle and other rapid marketing tools to achieve the parity of sales. H & M's history dates back to 1947 when a store called "Hennes" was opened in Vasteras, a center of medieval culture and trade in Northern Sweden, in Northern Europe, at a reasonable price with style and quality In 1968, Hennes acquired the shop "Mauritz Widforss" and changed its name to Hennes & Mquritz (H & M). In 1974, H & M began to expand its business after the third generation of the family, Stephen Pearson. The launch of new product lines, cosmetics, youth wear and baby clothes enriched the shelves and the stores also spanned Nordic, Into the United Kingdom, Germany and other European continent countries, the steady increase. In 2000, H & M has grown into Europe's largest apparel retailer with more than 840 stores in 14 countries and the first flagship store in New York. In 2006, H & M stores increased to 1345, distributed in 14 countries in Europe, America and Asia, total sales increased to 800 billion US dollars, net assets yield as high as 40.2%. How can H & M maintain and enhance its competitiveness in the globalization of the world and make its business grow rapidly? Customer Value Innovation: Thinking out of the box, this is undoubtedly the center of the entire enterprise. American marketing guru Phillip Kotler thinks conventional innovation based on logic to solve problems in a highly competitive market is no longer applicable. Based on customer's creativity Thinking is showing a growing charm, it through original alternative concepts and product development can stimulate new markets and profit growth point. Obviously, H & M is the great winner of "creative thinking". "Offer Popularity and Quality at the Best Price," is the hallmark of a brand that Stephen Pearson identified when he joined the company. This positioning shows that H & M in advertised inherent low-cost, you should add fashion elements and excellent quality. This seems to many people can not understand, how the popular parity and luxury fashion change, which means "noble fall"? H & M noticed that in fact, none of the shoppers did not like luxury designer clothes at the time of design, but the vast majority of them had to wait until the clearance sale before they were able to "shoot in time" and why they could not satisfy the customers' Cheap cheap demand? According to a survey conducted by the Verdict Research, a professional body, the average price of apparel dropped by 34% since 1995, but the number of clothes purchased by women has doubled in the same period. This shows that consumers are more concerned about the fashion style, buy more clothes, but less and less wear. At the same time, the current consumer market is experiencing an extreme shift from "luxury" to "saving money." In the "luxury" mode, consumers are willing to pay high prices for products with high quality and personality characteristics that meet their emotional needs Service; and in the "save money" mode, consumers are as much as possible to find low-priced high-quality goods. This "contradictory" demand is signaling the consumer's desire for "cheap fashion." And H & M's brand identity just balance the consumer's "contradiction" needs, in Hong Kong's first H & M Asia flagship store, RMB20 yuan fashion earrings bracelet trinkets, seventy to eighty pieces of various alternative T-shirt, one Two hundred yuan of exquisite dresses, jackets, these bought really hands-free, and, "mix and match is the key" pop culture has made more and more people aware of the H & M and luxury brands mix and match (mix and match ) Is a very clever idea! In addition to its emphasis on price and fashion, H & M is highly qualified for its products, which require comprehensive testing and routine quality control, including zippers, flammability, chemicals, buttons, sizes, etc., as well as garment production The process does not add harmful substances and hazardous chemicals. To a certain extent, H & M is in unison with IKEA's business philosophy of selling clothing, furniture and pop culture in a fast, standard, and popular way, selling "fashion" like McDonald's. It is this credo that has given a boost to the success of the company and ensured that the company still managed to create a 50% net profit in the downturn of the industry in 2003, and this year allowed the company to expand 75% The highest point in history, H & M has always maintained an annual increase of 10% -15% of the rate of expansion of branches. Get the "quick sell" advantage: Quick response to market innovations "Time is money, time is speed", for the garment industry, this statement is especially important. According to economists, a computer product depreciates by an average of 0.1% a day, while a garment depreciates by an average of 0.7% a day. If it can be sold 10 days earlier, it will be less devalued by 7% and its gross profit margin will increase by 13% %. Therefore, once the garment enterprises have mastered the efficiency, they can seize the market opportunities, to capture the fleeting profit opportunities. This is exactly H & M's goal. Create a trend VS imitate the trend of "fashion followers, not creators," H & M said. As consumer tastes change faster and faster, H & M pinpoints precisely the needs of its customers, so their strategy is not to create a trend, but to be accurate just as the trend has just arrived Identify and promptly launch the appropriate clothing styles, to achieve the best ideas for the fastest income for their own use. H & M usually started planning trends and fashion products by design department and purchasing department a year ago. Every spring and summer, fashion week will be held in major fashion cities in the world to send people to attend. In this way, only three weeks, When the fans are still racking their brains to buy a little dress, the general public is able to buy clothes that are clearly similar to the Chanel's seasonal style at H & M's stores at cheap prices. In addition to Fashion Week, around the street culture, film media. All kinds of trade festivals and trend of history, but also the source of inspiration for H & M, the trend of information collected by the headquarters of more than 100 designers to make an analysis, and as a blueprint for their design process. In addition, H & M's assistive tooling is also a powerful tool for H & M. Once the popular information is obtained, it can be passed to H & M headquarters as soon as possible through the system, enabling the design department to grasp the style welcomed by customers in the shortest time Of course, for businesses themselves, this can also significantly reduce the risk of producing a garment that is not popular with customers and discounts resulting from discounts. Fun "OEM" For the apparel industry, "new products to seize the market" is a magic weapon, so, in order to better enhance the speed of new entrants into the market, reduce capital occupation and reduce the risk of expanding the market, OEM is an exceptionally good s Choice. For efficiency and cost reasons, H & M abandoned its business model very early and outsourced the entire manufacturing process to about 700 apparel manufacturers around the world. Sixty percent of these 700 producers are in Asia, with nearly 40% in Europe and the rest in the rest of the world. In fact, this arrangement is "purpose", in general the trend of apparel can be divided into three levels, the bottom is the customer demand for the largest commodity, the middle layer of the season is the popular clothing, while the top is the commodity Will reflect the latest fashion trends. In this way, H & M can be separate, small and popular clothing is mainly produced by European manufacturers, so that trendy styles can quickly reach the major markets in Europe; while the conventional style of fashion and children's clothing are mainly produced in Asia, the popularity of these garments Not strong, can reduce costs by waterway transport. For better management, the distribution of H & M Production is directly proportional to the distribution of producers, of which 22 are in production, 10 in Asia, 10 in Europe and the remaining 2 in Africa and Central America so that they can Convenient coordination of different regions of the manufacturer. In addition, data from 2002-2004 show that in 2002, there were 900 manufacturers and 21 production departments that had contracts with H & M. In 2003, the number of contracted manufacturers has dropped sharply to about 750 while the number of production departments remained at 21, by 2004, contract manufacturers to further reduce to 700 or so, while the number of production increased to 22. Obviously, H & M intends to reduce the number of producers, but is increasing the number of production department. Can be seen, H & M's purpose is not expensive expensive manufacturers more, additional production department can communicate more effectively with consultation, reduce the production process time to ensure product quality control and rapid shipping capacity. As CEO Ericsson said: "We have many suppliers in Europe, they cost a bit high, but the delivery time is short, so clothes are not easy to discount." Integration and optimization of the supply chain to seek strategic fulcrum Some say, In the 21st century, the competition of enterprises has shifted from product fight to competition among supply chains. A successful enterprise must be more excellent in the interactive coordination operation of all nodes in every link. At this point, H & M performed very well. H & M has focused its attention on the integration of information systems. H & M relies heavily on the ICT systems established regardless of the connection between the programs themselves or between programs. What is ICTs? It refers to the application of various communications software and equipment to provide various applications and services such as distance learning, remote operations, video conferencing, management information systems and inventory control. It can penetrate the entire supply chain, in order to achieve the compression of the time required for each procedure, so that the convergence between procedures more smoothly. H & M brings two advantages with ICTs. The first is information, with ICTs, H & M departments can share each store's clothes sales records, the design department can be informed of customer preferences; logistics department can promptly replenish hot products based on inventory information; Purchasing Department can be based on sales records early Plans to increase by the customer welcome clothing style. These advantages can make decisions faster and more accurate, especially for the increase of clothing styles, if you can not obtain timely information to make decisions to increase production, it is likely to delay the process of other links, even if the increase in the completion of the style may also become Yellow flower tomorrow. The second advantage is communication. Each link in the supply chain is closely interlinked. ICTs are linked with the communication among various departments to make communication more smooth. H & M's supply chain is a one-stop design that includes design department, purchasing department, production department, manufacturer, central warehouse, local distribution center and branch offices. The procedures involved include design, placing orders, shipping, Shunt, quality checks, cargo diversion and so on. The information transmission begins with each branch, and the point-of-sale information system of the branch stores the collected sales records back to the headquarters ICTs platform in real time for sharing by ICTs terminals. The design of product development through the customer preferences, the newly developed fashion design will be sent to the Purchasing Department, the Purchasing Department will design and production to the number of production department, and according to the sales records of each branch issued other production orders. Since the production department and the manufacturers are located in different regions, production departments in all regions can communicate with each other through ICTs, and the production department needs to quickly transmit the relevant information to the manufacturer through ICTs so that the manufacturer can quickly learn about the production Clothing styles, can be prepared in advance and buy the fabric. Producers' finished products will be sorted by the logistics center. ICTs help logistics centers to make them more efficient. According to statistics, in 2004, the average number of goods handled per day reached 1.64 million. Even with a daily operation of 24 hours Calculations, on average, have to handle the sorting and shipping of nearly 70,000 items per hour. In addition, as all branches are self-operated, more effective and efficient data sharing among stores, shops, headquarters, and various departments further enhances the function of ICTs and fully integrates and optimizes H & M's supply chain system. Construction of the global "fast-selling" business model: a diversified business ideas Enterprise diversification strategy by the famous "product - market" strategy master Ansoff put forward in the 1950s, refers to the development of enterprises to a certain stage, to seek Long-term development and take a kind of growth or expansion of behavior, and this is H & M adhere to the business model over the years. "Variety, a small amount of" product diversification strategy to ensure low inventory, high rejection rate and fast fashion power, we must follow the "variety, a small amount of" product strategy. H & M to attract the attention of customers, to maintain customer's attention, we must firmly grasp the follow fashion trends, frequent updates and more choices. Psychologically speaking, the "multiple, small" strategy will give consumers the heart of "coercion", because this approach can create a kind of scarcity, thus inducing the intangible purchase of customers attractive, the more it does not Easy to get, the more you can stimulate the desire to buy. With the same style of clothing, the retail store stock is usually only a few pieces, perhaps because of your temporary hesitation, and thus missed the ultimate opportunity to own it, because you may see tomorrow, put a new shelves. This initial annoyance, in exchange for decisive purchase speed when customers patronize again, but trained a large number of loyal followers and preferrs. What's more, H & M's extensive line of products range from basic clothing to classic style to the forefront of fashion, from young people to teenagers to children and pregnant women, covering a wide range of colors and colors, all with different styles The colors can be picked, which makes their consumer groups even bigger.

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