This trend should aid the companys growth since it is

This preview shows page 1 - 2 out of 3 pages.

their price benefits to their customers. This trend should aid the company’s growth, since it is one of the leading retailers in Europe. The third opportunity for H&M is the acquisition of Gap’s German operations. H&M’s German subsidiary acquired Gap in February 2004. H&M took over all of Gap’s ten stores in Germany, including employees. Germany, accounting for 28.4% of total sales, is the company’s largest market and through this acquisition H&M has acquired stores in major locations in Germany. This opens up a window of opportunity for beginning some of these so called concept stores for teenagers, men’s wear and lingerie, all high-growth market segments.
Image of page 1

Subscribe to view the full document.

The final opportunity for H&M is the lifting of WTO quota on Chinese imports. A further expansion in the gross margin of H&M was expected in 2005 based on cheaper costs for imports from China as quotas on textiles and apparel have been eliminated by the WTO. The company estimated that on the whole, a saving of about 2-3% could be made on the purchase cost of goods, translating into a gross margin impact of about 0.7%. H&M has ten production offices in Asia; about half of the production activities take place in Asia. By leveraging its Asian presence, H&M can take advantage of the
Image of page 2
You've reached the end of this preview.
  • Fall '15

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern