S/B/90. H&Ms Entry into China

This report focuses on H&Ms international expansion. Due to the economics of scale and some other reasons, H&M needs to continue expanding into other countries. After analysis of four selected countries, China is targeted as the country which H&M should expand into. To survive in the rapidly changing environment, H&M needs to track trends occurring in the market. These trends can be translated into opportunities and threats, which H&M has to face in the future, supported by H&Ms organizational strengths and blocked by its weaknesses. On the basis of the SWOT analysis, H&Ms international marketing objectives are to open 20 stores in 4 big cities in four years and the growth rate of new stores is set at 8% and the annual sales growth rate is also 15%. The current entry strategy adopted by H&M is wholly owned subsidiaries, which is not suitable for its entering China for its lack of China market knowledge and culture. In order to achieve its objectives, H&M should offer unique product mix for Chinese market when it enters into the market. The paper will give H&M Company detailed strategic suggestions for its entry into Chinese market, with five main parts: internationalization, foreign market segmentation and targeting, environmental analysis by SWOT, international marketing objectives, foreign market entry strategy and product/service mix preparation.