ANDHINI PUTRI, YESHICA INDRA, ASTARI AJENG
DATA GATHERING ANALYSIS H&M THURSDAY, 7 JULY 2011 TH
EXECUTIVE SUMMARY
H&M is the third-largest retail brand targeting the young market that is known for its "Fashion and quality at the best price.” Having their manufacturing here and seeing the broad prospect of retailing in the Indonesian market, there has been some rumors addressing the H&M franchise here..
 EXECUTIVE SUMMARY
Having done various types of research, we analyze that not only there are much demands for it, but the H&M retail would be positively accepted by the Indonesian market which are avid fashion consumers. Although known for its affordable price, the market would still be willing to pay more for the advantage of having an H&M in Grand or Plaza Indonesia rather than h a v i n g t o fl y o u t t o H o n g K o n g o r Singapore for the closest store. Despite obvious competitions such as Zara, Forever21 and other rapid growing International brands, H&M would do very well.
INTRODUCTION
BACKGROUND INFORTMATION & HISTORY
H&M is a Swedish retail-clothing c o m p a n y, w a s f o u n d e d i n 1 9 4 7 b y Erling Persson by the concept of clothes stores selling stylish garments at low prices. He named the store ‘Hennes’ which stood for ‘hers’ in Swedish known for its fast-fashion clothing offerings for women, men, teenagers and children. Production is outsourced to approximately 800 factories in Europe and Asia, including Indonesia.
BACKGROUND INFORTMATION & HISTORY
To d a y, H & M i s t h e w o r l d ’s t h i r d - l a r g e s t retailer by sales with over 2,300 stores in 41 countries. It managed to grow quickly by offering clothing that is seen as both fashionable and reasonably priced. I t m a d e i t s m a r k o n t h e a p p a r e l i n d u s t r y, mixing the latest trends with fashion classics. H & M ’s b u s i n e s s m o d e l i s b a s e d o n "Fashion and quality at the best price."
DEFINE TERMS H&M Marketing Mix (Place, Product, Price and Promotion) Place is considered one of the most important concepts in business for H&M. By opening stores it creates a distribution channel to people to purchase their product. Other countries also have developed online shopping for H&M, this way their customer would have a easier way to purchase. H&M said that distribution channel is very important for them because it i n c r e a s e s t h e i r s t o r e ’s p o p u l a r i t y. H & M ’s p r o d u c t s a r e h e a v y w e i g h t e d o n t h e i r f a s h i o n s e n s e a n d q u a l i t y . T h e r e f o r e i t s a t i s fi e s t h e n e e d o f i t s c u s t o m e r s . T h i s i s w h a t m a k e s H & M ’s p r o d u c t a t t r a c t i v e . The prices for H&M clothes are not expensive. H&M also promotes bulk buying in their shops. Their prices are what attracted customers to re-visit. The prices are usually cheap or reasonable. Promotion is listed one of the most complementary sales channels. It brings attention to the business therefore will give l e a d t o t h e i n c r e a s e o f t h e i r b r a n d p o p u l a r i t y a n d l o y a l t y. T h i s m e a n s , H & M n o w h a s s e t u p a s u c c e s s f u l i m a g e i n p e o p l e ’s mind.
DEFINE TERMS
F o r e v e r y c o m p a n y, n o t j u s t H & M , t h e biggest threat to enter into a international markets is whether their corporate culture would be able to adapt to the new environment. For example, if H&M were to be here it would be different from the others because of buyers. Social is also one of the threats when entering to a international market. If the brand is not acceptable to the society H&M will have to suffer from the lack of customers.
OBJECTIVES To analyze the possibility of an H&M franchise in Indonesia along with its advantages and disadvantages. To gather the public’s reaction about its opening a franchise in Indonesia. Analyzing H&M’s competitiveness against all the existing retail in Indonesia, local and international.
PROBLEM STATEMENT
H&M said that distribution channel is very important for them because it increases their s t o r e ’s p o p u l a r i t y f o r p e o p l e t o p u r c h a s e t h e i r product. Other countries also have developed online shopping for H&M.
H&M is unavailable in Indonesia in form of a retail store. Would (The closest store is located in HK, and another one opening in Singapore).
PROBLEM STATEMENT
Would H&M serve well in the Indonesian market satisfying its avid consumers?
RESEARCH METHODS & ANALYSIS
TYPE OF RESEARCH DESIGN
DESCRIPTIVE
HOW THE DATA WAS COLLECTED
OBSERVATION
 http://shop.hm.com/
Since the physical store itself are not available here, we observe that the Indonesian market itself rarely ever shop at the web store itself.
 http://shop.hm.com/ Online shopping for the market is limited just Facebook and blogs. Though there are some who does purchase H&M off their official web, most people just do not bother with International shipping.
HOW THE DATA WAS COLLECTED
QUESTIONNAIRE
QUESTIONNAIRE
Our methods:
MANUAL & ONLINE
MANUAL/ MALLS, HIGH SCHOOL AND COLLEGES
DISTRIBUTED THROUGH VARIOUS
ONLINE/ HTTP://
WWW.SURVEYMONKEY.COM/S/ RYJDL6G
WWW.SURVEYMONKEY.COM/S/RYJDL6G
ONLINE/
SURVEY MONKEY
DISTRIBUTED THROUGH SOCIAL NETWORKING AMONG FRIENDS – ABROAD AND NON.
RESULTS/
SURVEY MONKEY & MANUAL
68% 32% THROUGH MANUAL ONLINE
RESULT/
PART 1
Gender
Percentage
Male
25%
Female
75%
SOURCE: ONLINE & MANUAL QUESTIONNAIRE RESULT
ONLINE/
PART 1
SOURCE: ONLINE QUESTIONNAIRE RESULT
ONLINE/
PART 1
SOURCE: ONLINE QUESTIONNAIRE RESULT
ONLINE/ PART 1
SOURCE: ONLINE QUESTIONNAIRE RESULT
RESULT
/
PART 2
Percentage Shopping Media 23
Social Network
19
Webstore
10
Ebay/ Amazon
95
Retail
4
Others
SOURCE: QUESTIONNAIRE RESULT
RESULTS/
PART 2
Perc Shopping Budget entag e 30
< 500 IDR
33
500 – 1 MIL IDR
15
1 – 1.5 MIL IDR
18
1.5 – 2 MIL IDR
3
> 2 MIL IDR
1
ABSTAIN
Perc Income (Part 1) entag e 31 20 25 15 9
1-2 MIL 2-3 MIL 3-4 MIL >4 MIL Abstain
SOURCE: ONLINE QUESTIONNAIRE RESULT
ONLINE/
PART 2
SOURCE: ONLINE QUESTIONNAIRE RESULT
ONLINE/
PART 3
Percentage
Are H&M products durable?
9
Strongly Agree
29
Agree
13
Neither
7
Disagree
0
Strongly Disagree
42
Abstain
RESULT/
PART 3
According to the questionnaire, people prefer H&M compared to Forever 21 73% Percent of respondents (strongly) agree that H&M would do well in Indonesia
Percentage
27 34 20 10 0 9
Prefer H&M than Forever 21 Strongly Agree Agree Neither Disagree Strongly Disagree Abstain
SOURCE: ONLINE & MANUAL QUESTIONNAIRE RESULT
QUESTIONNAIRE LIMITATIONS
-The online questionnaire disable the respondents to check all strongly agree for Part 3 - The online questionnaire doesn’t let you to put pictures as options
QUESTIONNAIRE LIMITATIONS
-The manual questionnaire takes a lot of time and effort to be placed in codebook
HOW THE DATA WAS COLLECTED
FOCUS GROUP DISCUSSION
FGD
30th June 2011 Lasalle College, AC 2:
13.00 – 14.00 PM
FGD RESULT
All of our respondents consisted of various college and university students of H&M’s target market and all is well aware or shoppers of H&M.
FGD RESULT
Shopping items Most of our respondents agree that the main items they buy is tops, followed by accessories such as jewelries and shoes. This result coherent with the result with our questionnaire.
Percen tage
Prefer
38
To p s
14
Bottoms
14
Dresses
15
Accessories
17
Shoes
SOURCE: QUESTIONNAIRE RESULT
ď&#x201A;¤â&#x20AC;Ż FGD RESULT
Shopping media Half of the respondents claim that they do use and like online medias like blogs though not as often because they prefer retail where they can actually observe the items.
ď&#x201A;¤â&#x20AC;Ż FGD RESULT
Shopping places
We gather that the respondents do shop at the mall they frequently visit for the benefit of the location like Pondok Indah Mall, and Grand Indonesia/ Plaza Indonesia for their availability of local brands there.
ď&#x201A;¤â&#x20AC;Ż FGD RESULT
Designer collaborations The favorite collaborating designs that the respondents prefer are by Lanvin and blogger Elin Kling. Respondents also claim that they would be willing pay up to 50% higher than the H&M price range for a collaboration piece if the design is good.
FGD RESULT
H&M Weaknesses
FGD RESULT
Sweatshop labor issue Although most of our respondents individually are against the idea itself, most of them think that the H&M sweatshop labor issue abroad won’t be too much of a bother for Indonesian because they mostly care affordable price.
FGD RESULT
H&M franchising Respondents think that H&M franchising would do ver y well in Indonesia market despite the many retail competitors although some thinks that the products wouldn’t be as good as the abroad because it all depends on the buyers.
ď&#x201A;¤â&#x20AC;Ż FGD RESULT
H&M franchising Respondents pick that if H&M were to open it would be at Grand Indonesia/ Plaza Indonesia due to the space and target market, and not at malls such as Pacific Place.
FGD LIMITATIONS
-During FGD, most of the respondents are late - During the FGD, most of the respondents cancel their appointments
CONCLUSIONS & RECOMMENDATIONS
CONCLUSION H&M themselves who said that distribution channel is very important for them because i t i n c r e a s e s t h e i r s t o r e â&#x20AC;&#x2122;s p o p u l a r i t y. A n d there is no better place than the Indonesian market to expand for the target market living in Indonesia which are avid fashion consumers with average going to 2-3 shopping trips in a month. Although H&M provides online shopping for countries its store are not available at, the questionnaire result has supported that almost 100 percent of costumers shops at a retail store. Without a doubt, a store would do very well in here.
RECOMMENDATION Open a franchise in Indonesia If an H&M store is to open in Indonesia, we recommend it to be situated at Grand Indonesia or Plaza Indonesia.
THANK
YOU.