New Microsoft Word Document.docx - Elements of culture:...

This preview shows page 1 - 3 out of 5 pages.

Elements of culture:Price:H&M was known around the world for being a low-cost, fashion-forward retailer. The shop claimed to offerdemocratic fashion at affordable costs, allowing evenlow-income customers to buy and change trendsthroughout the year. H&M, on the other hand, enteredthe Chinese market in the area between low-cost clothesand high-end fashion. As a result, H&M's prices inChina were higher than in other areas, and the companycatered to the Chinese middle class. These were mostlyyoung professionals from the expanding middle class.As a result, despite the fact that H&M was dubbed"cheap chic" in Europe, the company targeted higher-income people in China. A dress that cost $34,95 in theUnited States, for example, cost $47,78 in China.Uniqlo and Zara, two of H&M's main Chinesecompetitors, followed the same pricing strategy andpromoted their products in China at a higher price thanin their home markets.Product:Basics, current fashion, and high fashion were the threecategories of H&M clothes. The product mix in localstores was determined by client demand, which wasbased on previous season's sales, the store's location,and its size. Because high fashion apparel was createdin small quantities, it was exclusively sold in majorcities. H&M's product strategy was centered oneconomies of scale and huge production batches. As a
result, regardless of whether the customer was inSweden or Taiwan, 80 percent of store content remainedthe same and shops looked substantially the same.When necessary, however, the shop made localadjustments. H&M conducted focus groups in China todetermine the size and color preferences for garments.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 5 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
N/A
Tags
People s Republic of China

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture