Retail Theory and Practice Assignment - H&M

Retail Theory and
Practice

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Introduction to Retail ................................................................................................................1
Introduction to H&M.................................................................................................................1
Key relevant changes within the UK fashion retail...................................................................2
Changes in the micro environment............................................................................................4
Strategies and tactics used by H&M .........................................................................................5
Recommendations .....................................................................................................................6
CONCLUSION...........................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Today fashion industry is an international and highly globalised industry. Fashion is the
culture of time, attitude, habit and forms of behaviour which are shared and inherited from
generation to generation within the society (Hristov and Reynolds, 2015). It includes clothing,
footwear, accessories, lifestyle, make up, hairstyle and body. In context to Hennes & Mauritz
(H&M) , a Swedish multinational clothing retail company which is introduced in the year of
1947. Its headquartered in Sweden and segmented its product for men, women, teenagers and
children. This report covers introduction about fashion industry and about H&M, analysing
macro and micro factors by using PESTLE analysis, strategies used in retail industry and
appropriate suggestion for improving the growth of fashion industry.
MAIN BODY
Introduction to Retail
Retail is the process of selling consumer goods and services to customers through
multiple channels of distribution to earn profit. Retailing is an integral part of everyday lives and
it is one of the fastest growing sector. Apart form this the reason behind the growth of retail
industry is increase in income of youth segment, rises in nuclear family and increase in social
media penetration. Furthermore, fashion industry is one fastest growing industry which is
concerned with art, culture and social lives of people and produce product according to the taste
and preference of customer as it's regarded as customer oriented industry (Hagberg and
Kjellberg, 2015). Companies who operates their business in retail sector has enormous
opportunities due to adaption of innovative technologies like online trade or shopping which
made them one of the booming industry among other competitors. In case of H&M, one of the
leading company in retail industry which is operated in the year of 1947. Due to qualitative and
creative product of H&M attract the attention of customers and leads to achievement of higher
level of profitability. However, retail market is growing, government is implementing favourable
policies and encourage them to adapt latest trends and technology in order to stand firm among
competitors.
Introduction to H&M
Among fashion industry H&M, a famous and multinational retail company which is
founded in the year of 1947. It's headquartered in Sweden and its business operated in 62
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