Hennes & Mauritz: Cross Culture Environment and Corporate Social Responsibilities

Running head: CROSS CULTURE ENVIRONMENT
Hennes & Mauritz
Cross Culture Environment
2/28/2019

CROSS CULTURE ENVIRONMENT 1
Table of Contents
Introduction................................................................................................................................2
Overview of Hennes & Mauritz.............................................................................................2
Type of Market.......................................................................................................................3
Role of Internationalization in building H&M Profile in the United Kingdom.....................3
Largest fashion market.......................................................................................................3
Employment.......................................................................................................................4
H&M’s average number of staff worldwide......................................................................4
Fashion...............................................................................................................................5
H&M developing brands for different market type...............................................................5
Segmentation Strategy.......................................................................................................5
Targeting Strategy..............................................................................................................6
Positioning Strategy...........................................................................................................7
Corporate Social Responsibilities of H&M...........................................................................7
About Sustainable strategy of H&M..................................................................................7
Improving relationship with stakeholders through sustainable practices..............................8
Engaging with Stakeholders...............................................................................................9
Conclusion................................................................................................................................11
References................................................................................................................................13

CROSS CULTURE ENVIRONMENT 2
Introduction
Global marketing is the procedure of regulating the strategies of marketing of the business in
order to get familiar with the market situations of other nation. Global marketing is not just
about vending the service or product worldwide. It is comprised of a complete procedure of
planning, framing, positioning, and promoting the products in the international market.
Global marketing supports companies in establishing their brand in the international market
(Farrell, 2015). Marketing globally enhance the effectiveness of the product and services
offered by the company. Since the business learns and grows, it becomes more effective at
continuing improved and new products or services. This also results in creating strong
competitive advantage for the company in comparison to its competitors. Besides this,
offering products in the international market support company in increasing the customer
awareness, which eventually results in increased sales of the business. The intent of this paper
is to review how Hennes & Mauritz (H&M) has secured its position in the international
market. The paper will be comprised of detailed information related to strategies and
approaches adopted by Hennes & Mauritz in the global market such as the type of market in
which it operates. The role performed in internationalization in establishing business globally
and its principles of corporate social responsibilities. The paper will be based on analyzing a
company's position in the United Kingdom market.
Overview of Hennes & Mauritz
Hennes & Mauritz is Swedish clothing retailing business offering a wide range of options for
teenagers, children, women, and men. The company is known in the market for its fast
fashion. H&M has its operations in 62 nations with around 4,500 stores. In the world,
company is considered as the second largest retailer in the fashion industry. Inditex Company
has occupied the first position in the retailing industry. It has a strong presence on online

CROSS CULTURE ENVIRONMENT 3
platform by offering services in 33 countries (Shen, 2014). Erling Persson established
company in 1947. In the starting years, company was only involved in selling women
clothing. In 1968, the owner of the company acquired the chasing retailer of the apparel that
is Mauritz Widforss, which supported in including the collection of menswear in the product
portfolio.
Type of Market
H&M operates its business in the industry of clothing. This industry is involved in selling,
footwear, accessories, and clothing for all the genders and age group. The moneymaking
sector of the clothing industry is women's clothing, which is making around 53% of the total
industry’s profit. H&M works in monopolistic competition, which is said to be the imperfect
competition categorized by a number of businesses that vend the same type of products but
are not identical (Chui, 2019).
Fast-fashion brands have attained pace in the United Kingdom market during 2017 with key
businesses like Inditex, Primark Stores, and H&M, developing well and enduring to win new
customers from their competitors. It is due to their capability to quickly react to the changing
trends and promote newly developed products in limited time at reasonable prices
(EuroMonitor International, 2018).
Role of Internationalization in building H&M Profile in the United Kingdom
Largest fashion market
The United Kingdom is considered the biggest market for fashion retailers to expand their
operations. H&M has expanded its operations in this region in order to cover the increasing
demand as well as to become the largest retailer in the entire industry. According to the
reports, H&M has become the second largest fashion retailer by expanding around 425 stores