H & M

Historical background of the shops.

In 1946 the company's founder Erling Persson came up with the business idea of offering fashionable clothing at attractive prices. In 1947 he opened his first shop Västerås, Sweden "Hennes", which exclusively sold women's clothing. "Hennes" is Swedish and means "for her" and/or "hers". In 1968 Persson acquired the hunting apparel retailer Mauritz Widforss, which led to the inclusion of a menswear collection in the product range and the name change to "Hennes & Mauritz" (H&M). In 1998, the company successfully gained control over the initials "HM" for its Internet domain HM.com..

Pictures of the shop:

Pictures of the products sold:

Direction to the shop; address:                                                              

1. Lot M1-14 & M1-25

Johor Bahru City Square 106-108, Jalan Wong Ah Fook

80000 Johor Bahru

Malaysia

Contact number of shops.

+607-2070540

Business hours.

Mon - Sun 10:00 - 10:00

Value proposition of the shops—what makes the shops special and attractive

H&M appeals to both haute-couture and off-the-rack markets so well that it made it to our number two place of the richest fashion labels ever.

Its vast product pool includes tops, jackets, underwears, jeans, shoes, swimwear, lingerie and many more.

Here is H&M’s product catalog for Men, Ladies and Kids.
LADIES

• Tops
• Shirts & Blouses
• Cardigans & Sweaters
• Pants
• Jeans
• Shorts
• Dresses
• Skirts
• Jackets & Coats
• Blazers & Waistcoats
• Sportswear
• Swimwear
• Lingerie
• Sleepwear
• Socks & Tights
• Accessories
• Shoes
• Cosmetics
• H&M+ Size 14-24
• Maternity Wear
• L.O.G.G. Favorites
• MAMA Favorites
• Modern Metallics
• Playful Classics
• Stylist´s Picks
• New Arrivals Divided
• Denim Guide
• Shades of fall
• Trend Update
• In Stores Now
• Fall Highlights
• Shades of black
• New Fall Jackets

MEN

• View All
• New Arrivals
• T-shirts & Vests
• Shirts
• Sweaters & Cardigans
• Hoodies & Sweatshirts
• Jackets & Suits
• Pants
• Jeans
• Jackets & Coats
• Sportswear
• Swimwear
• Underwear & Socks
• Accessories
• Shoes
• Mix It with Denim
• Casual Classics
• Shoes
• Denim Guide
• In Stores Now
• Season’s Trousers
• Shades of black
• New Fall Jackets
• David Beckham Bodywear

KIDS

• View All
• New Arrivals
• Newborn Size 0-6m
• Baby Girl Size 4-24m
• Baby Boy Size 4-24m
• Girl Size 1 1/2-8y
• Boys Size 1 1/2-8y
• Girls Size 8y-14+
• Boys Size 8y-14+
• Selected Jeans
• Seasonal Prints
• Baby Basics
• School Favorites
• Outdoor Favorites
• Stylist´s Picks
• Denim Guide
• Functional Outerwear
• Sportswear
• In stores now
• A Playful Mix

H&M

PRODUCT

The product must be considered to the aspirations of customers in the chosen market. To be successful it is necessary to identify and understand the motivations of the target consumers. Product refers to both physical goods and services, and to be aware of cultural sensitivity, differences and local knowledge is the key to succeed.H&M's product, which means, that the most important factor to influence the customers' propensity to consume is the clothes of H&M. The quality of the product will be a factor that may be spread by one customer to another potential customer. In Malaysia many people tends to prefer colorful clothes and that is also something that H&M should consider when adapting the product to the Malaysia market.

PRICE

These people are about 18-35 years old and most of them are university or high school students with an interest for western fashion. In the big cities we can also find a middle class and a higher class that both have a high income. When pricing the products, H&M needs to consider the price's competitiveness. As we mentioned before, there are about 300 million who belongs to the middle class and have a good purchase power. The pricing idea of H&M, "low price to make more profit", is well-known around the world. . A low price is often more attractive, and H&M need to make their product more competitive compared to ZARA and the easiest way to reach that point is to low down the price.

THE REASON OF THE PRODUCTS ARE POPULAR AMONG THE CUSTOMERS

H&Ms their business idea to sell fashionable clothes to a low price that almost everyone can afford. Since they are able to outsource the production to factories in Asia and Europe to a low price, they're able to sell the clothes to a low price as well. To make their clothes even more attractive at the markets, H&M have started to use famous designers as Jimmy Choo and celebrities as Madonna to design collections for them. We think that using a person with a strong personal brand is a good way to compete with other budget stores and also with clothing companies that are more exclusive. H&Ms business concept is easy - fashion and quality at the best price. This is what will guide the designers and managers creative process from the production to the store. They want to find a balance between fashion, quality and the best price. The individual customer is always in focus and no matter what age, taste or individual style you have you will always find something at H&M.

RECOMMENDATION

In order to raise the competitiveness of H&M in Malaysians fashion market, some retail strategies are recommended. We provide some suggestions based on 4Ps.

Place: Personally, my opinion that because H&M already make use of producers and suppliers in this market, they are at an advantage because they are almost already aware about how the sector of the economy functions. Firstly, because these goods are going to be sold in the Malaysian market, H&M will have to source more cost efficient suppliers of their items. They therefore have to find a channel of distributions of their goods which is going to permit these good arrive in the hands of the customers at the most cost efficient price. In order to minimize cost, rather than maybe setting up or investing in building stores of their own, H&M can rent space in large well renowned departmental stores. This to an extent reduces the overhead cost of penetrating the market and this reduction is past on to the consumers in the form of lower prices and it gives H&M a real chance of penetrating the market through the penetrating pricing strategy. H&M can also get involved in joint ventures with already established organizations in the area.

Price: There are various pricing strategies that H&M can implement. For example, they make use of the penetrating pricing strategy, where in they set the prices of their good at a considerably low level, with the main aim of capturing the market, giving buyers a chance to have a feel of their product, and when they are convinced that they have attracted and retained their customers, and are sure that the customers fully appreciate the value of their goods, they can begin increasing the prices. Other pricing strategies that can be used by the company include the economy pricing strategy, premium pricing, price skimming, price discrimination, pricing based on geographic, psychological pricing and product line pricing. What ever the pricing strategy that H&M decide to implement, it is important that they get t right as this can totally make or me the whole market penetration strategy in the economy.

Product: H&M operate with a business concept of giving customers the best value in fashion in todays market at the most affordable price. It is important to note that H&M do not produce their own goods; they buy their goods from various sellers and distributors in the Europe and Asia. Considering that H&M is trying to penetrate the Indian market. It can be an important point to make here that liaising a lot more with suppliers in the Indian market will be very useful, as they have a better idea of the kinds of products, which are in high demand in this market. It s also important to note that Malaysia has different cultural values, For example, the females in this region generally put on clothes which cover a lot more of their body.so it will still be important to liaise with the suppliers so that they supply the kind of items that are required in this kind of society. If H&M takes this these things in to consideration, there is a greater chance that they will be able to penetrate the Indian market more effectively and more efficiently.

Promotion: If H&M is going to succeed in this market, advertisement is going to be very important. And it could actually e the deal breaker. Putting up billboards and engaging in radio and tv advertisement will be key. It is also important to know that the sporting culture in Malaysia centers heavily on cricket. As such it will be important for H&M to try to indulge in some form of cricket sponsorship. This will be striking their consumers at their softest spot and will go a very long way to attract customers and retain customers. E -marketing is another technique, which can be utilized. However the extent to which this can be used is limited as Malaysia is a developing country and the extent to which everybody can have assess to the Internet is limited. This might be effective but not as effectively as H&M might have wanted. On a whole, advertise is very important to and a very necessary ingredient to penetrating the Malaysian market.

'PADINI'

Historical background of the shops.

Padini began operations as Hwayo Garments Manufacturers Company in 1971, it was affiliated in garment manufacturing and wholesaling. It entered the retail industry in 1975 with flagship brand Padini. VINCCI was established to market ladies shoes, bags, belts and other accessories in 1986. Many brands including MIKI, SEED, ROPÉ, P & Co. and PADINI AUTHENTICS labels were launched in the following decades.In 1991, Home Stores Sdn Bhd was launched to hold all the companies involved in the Group's retail, wholesale and manufacturing businesses. It was subsequently renamed to the present Padini Holdings a year later. In 1995, Padini Holdings Sdn Bhd was converted to a public company limited by shares and adopted the name, Padini Holdings Berhad and soon listed on the Second Board of the then Kuala Lumpur Stock Exchange.The year 2000 witnessed the establishment of Padini Dot Com Sdn Bhd to provide electronicbusiness services and solutions for the group. Padini Holdings was transferred to the Main Board of the KLCI Bursa Malaysia in 2005.

Pictures of the shop:

Pictures of the products sold:

       

Direction to the shop; address.

Komtar JBCC (Lot No 138 & 139 First Floor), 80000 Johor Bahru, Johor, Malaysia

Contact number of shops.

TEL : 016 – 7213809

Business hours

Monday - Sunday 10am-10pm

Value proposition of the shops—what makes the shops special and attractive

VINCCI

The most prominent brand of the Padini family. A footwear brand that focuses on chic and affordability, most of its shoes are made from synthetic material. It also sells watches, sunglasses, PVC handbags and bead accessories.

MIKI

The two brands under the MIKI flag are: MIKI Kids and MIKI Maternity. MIKI Kids are designed for toddlers while Miki Maternity is designed for fashionable mums-to-be. polyester spandex, poly rayon spandex, cotton poplin and cotton nylon are among the materials used.

SEED

SEED focuses on urban office-wear for the masses. Affordable and forward-looking. The clothes under this line are usually jackets, coats, suits, office pants and knee-length skirts.

Padini Authentics

This brand focuses on quality casual wear. Its targets the teenager segment of the market. It sells pullovers, jackets, shirts and a variety of denims, khakis and knitwear.

PADINI

PRODUCT

Products of PADINI falls under consumer product which categorized as shopping products.PADINI itself has other alternatives brands under it. There are PADINI, Seed ,Pdi , PADINI Authentic , P&Co, Miki maternity , Vincci , Vincci accessories , Miki kids. The essential of PDI is to emphasis the casual stylish that can be accepted in any occasion. It's purpose to let any guy or girl to get a style fix among the fashion-current jeans, T-shirts, jackets, casual basic-T, belt, socks, scarf and even accessories in a shopper-friendly setting.PADINI is focus more on basic and family lifestyle and aim for anyone who likes and extols casual style. PADINI provides the essential working lifestyle for the modern working man and women. The PADINI collection carries a clean, timeless and modern to the working lifestyle. This brand is focuses on the formal wear and centralize customers base for workers. PADINI has launched out several of tie, belt, shirt and coat.

PRICE

Pricing are one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization. Pricing is difficult and must reflect supply and demand relationship. Pricing for a product too high or too low could mean a loss of sales for the organization. PADINI authenthic and Vinnci to penetrate the maket deeply. Both of these brands are low cost pricing and more focus on the middle class of customer base. Product price of these two brands are low and affordable. This is because there are more middle class of customer base compare to high consumption of customer base. Miki maternity is pay attention on the fashionable mums-to-be. This brand only focuses on the pregnant women and mums-to-be customer's base and Miki kids is focus on the children customer's base. Product price of this brand is quiet high and is consider as premium pricing.

THE REASON OF THE PRODUCTS ARE POPULAR AMONG THE CUSTOMERS

They will continue to maintain their high standard of design and manufacturing quality as well as affordability. PADINI use the differentiation of professional ,stylish and fashionable to position the products in the consumer minds. Carries out market-skimming pricing and setting a high price for Seed and PADINI to "skim" revenues layer-by-layer from those willing to pay the high price. Their brand image is strongly attached importance to the real value: quality, functionality and price.

RECOMMENDATION

After the overall marketing research regarding this company, we would make some recommendation about the product, market development, marketing technique, public promotion and sales rules and regulation.

Talking about the product, PADINI has never come out with unisex merchandise, as our experience as promoter in this company, we always get this question from customer .Also, we would suggest PADINI may make some couple design since the company is already well-established, these two product may probably open a new market to new young generation as their target, the company may choose the A outlet to do market testing by coming out limited quantity.

While for marketing technique, we can see PADINI has not yet to explore in the online buying. We suggest PADINI can set up a blog which contain all brands product. Before that, perhaps the company must set up an IT department to do IT support for future transaction and create a IT system to company. They may co-operate with some banks to offer discount by using online banking service. On the other hands, PADINI can also cooperate with some local distributors in the Malaysia like Citi-link or Sky Net to send out the order. Every transaction made by the customer will be shown a payment statement and it was guaranteed by the bank. Besides, the distribution of the order will directly send to the stated address according to the information stated on the order form by the customer.

Then, since PADINI is already well-known in fashion industry, we believe they are able to do a fashion show by hiring professional model, wearing their new products and having a fashion show .The company may invite some fashion professional ,helping to to advertising and promote their company. Besides, the company can organize a model show or competition by wearing their new products in specific mall like Gurney or Mid Valley, this will cost lesser. Furthermore, PADINI can sponsor to some well-known ladies magazine with conditions that include few pages which advertising about PADINI new products in every publication of magazine, for example Vogue and Nirvana Women.