Multinational Apparel Specialist Retailer Marketing Essay

Multinational App atomic number 18l Specialist Retailer Marketing analyzeHM Hennes Mauritz AB HM or the sort outing, founded in 1947 and headquartered in Stockholm, Sweden, is a multinational prune specialist seller and famous for its fast- port enclothe for men, women, teenagers and children (L benaudie, 2004). in like manner the ac conjunctions primary and eponymous chain of mountains, the group too ope order through cardinal free lance flaws Collection of Style (COS), Monki, Weekday, and Cheap Monday (HM, 2011a). Growing with the trade concept to cleft way and tincture at the crush expgoaliture, by the end of 2011, the group has gr take atomic number 53 of the largest world-wide snip sellers with battlefront in 43 foodstuffs and nearly 2500 lineages (HM, 2011a).HM operates at heart only a single part bargain of clothing and cosmetics (MarketLine, 2012), which locates the confederacy as a fast- means retailer in worldwide app atomic number 18l patien ce. High level of rivalry among competitors has been witnessed within the globular do industry. And the fluctuating damage of stark materials, unpredict might of bearing trends and profit demand of real beat update from consumers likewise pose challenges towards fashion retailers. However, HM, as one of the fast-fashion pioneers, has an outstanding and steady performance over the old age.There ar various factors contributing to HMs outstanding performance. Combined with the industrys fall upon success factors, it is inborn for a fashion retailer to balance toll efficiency with differentiation, arrest strong instigant-consciousness and orbicular expansion. Also, the continuously heated corporal brotherly tariff (CSR) spot remains the find to HMs success.Therefore, this dissertation aims to achieve three goalsTo crumple HMs performance ground on the global appargonl sell industrys key success factorsTo militantly examine HMs position against its competitors, especially Zara (Inditex Group)To electron orbit recommendations for the companys future(a) dodgeThis chapter serves as a general overview of the paper and aims to help readers with the signpost of thoughts in the dissertation. Chapter Two discusses literature review and methodology. Chapter Three focuses on abstract of global apparel retailing industry with volt Forces compendium, PESTLE compendium and key out Success Factors of the industry. Chapter Four is the main epitome of HM, starting based on four key success factors cost efficiency brand-consciousness global expansion and CSR, fol first baseed by competitive localisation of the company, financial analytic thinking, SWOT summary, and oddment with recommendations. Chapter Five is the conclusion of the dissertation.Due to individualised point of accumulation of know conductge and reach of resources, several parts of discussions in the dissertation could not be conducted in-depth. No right survey and entropy co llections get down been conducted ascribable to personal demarcation line of time and financial support. The dissertation is mainly based on figures and data collected from second-hand resources.Chapter 2 Literature critical review and MethodologyLiterature ReviewThis section serves as a theoretical support for the validity of the analysis of global apparel retailing industry in Chapter Three and analysis of HM in Chapter Four. fabrication analytic thinkingThe analysis of global apparel retailing industry is conducted with Five Forces Analysis (Chapter 3.2), PESTLE Analysis (Chapter 3.3) and learn Success Factors (Chapter 3.4).Five Forces Analysis developed by Michael Porter illustrates quin factors determining the level of competition and profitability within an industry (Grant, 2010). The exemplar is widely use in industry analysis and is conducted by analysing louvre sources of competitive pres true emptor agent, supplier power, modernistic entrants, substitutes, an d rivalry (Grant, 2010) (see learn 1). participate 1 Porters Five Forces framework (Grant, 2010)PESTLE Analysis is a framework to clarify and discuss the external macro-environment that affects an industry which stands for Political, Economic, Social, Techno coherent, Legal, and Environmental factors (Nejati et al, 2008).Key Success Factors of an industry is place by analysing the factors that help a unshakable survive and thrive within the grocery store environment (Grant, 2010). By analysing devil main criteria what do customers want and how does firm survive competition the shared out key elements of customer desire and the nature of rivalry could be identified (Grant, 2010) (see name 2) discover 2 Identifying Key Success Factors (Grant, 2010)Combining Five Forces Analysis with PESTLE Analysis, industry environment could be discussed in expatiate in Chapter Three. After the analysis of industry environment, key success factors impart be reached by the work to serve as the basis for company analysis in Chapter Four.Marketing fluxMarketing salmagundi model, also kn make as the 4Ps, is the combination of Price, yield, Promotion and blank, adopted by companies to explore their unequaled selling points (McCarthy, 1960) (see prefigure 3).Figure 3 Marketing Mix 4Ps (McCarthy, 1960)By employing merchandising mix model in Chapter 4.2, the unique grocery store combination of HM has been analysed.International output Life Cycle possiblenessThe overlap life bike (PLC) theory explains the basic growing of intersections and motivations for globalistic trade (Ajami Goddard, 2006). The theory describes four discrete stops in a product life cycle introduction, growing, maturity, and decline (Vernon, 1966) (see Figure 4).Figure 4 Product Life Cycle Theory (Vernon, 1966)The PLC theory has been widely adopted in analysis of international championship and trade (Ajami Goddard, 2006). In Chapter 4.2 and Chapter 4.4.1, the theory has been use in explaining HMs product and market select and entry in global expansion progress.Uppsala shamThe Uppsala Model suggests that a companys global expansion is a gradual serve up reliant on market association and additive decisions (Johanson and Vahlne, 1977 Frynas Mellahi, 2011). The theory is based on the assumption that firms expound globally with logical measures, based on the ga thered information from foreign markets, which will transcend to great involvement of market commitment to more than international crease activities (Johanson and Vahlne, 1977 Frynas Mellahi, 2011).The model is based on 2 steps. First, when starting foreign market selection and entry, firms normally start expanding to neighbouring countries or countries with menial psychic maintain (Frynas Mellahi, 2011). Then after gathering experiential market knowledge, the firm expand to foreign markets step by step (Frynas Mellahi, 2011).Figure 5 Uppsala Model (Frynas Mellahi, 2011)The Uppsala Model he lps understand a companys choice and plan in international market selection and mode of entry. In Chapter 4.4, Uppsala Model is employed to snap off illustrate the global expansion dodging of HM. somatic Social officeThe European Commission defines Corporate Social Responsibility asA concept whereby companies integrate complaisant and environmental concerns in their business trading operations and in their interaction with their stakeholders on a voluntary basis (Commission of the European Communities, 2001)The importances of CSR has been analysed by Porter and Kramer (2006) as succeedsFigure 6 Importance of Corporate Social Responsibility (Porter and Kramer, 2006)In Chapter 4.5, the theory has been employ to discuss and analyse HMs involvement in CSR activities and its effect.Market PositioningA firm terminate achieve its competitive advantages in either of two methods either it force out supply an identical product or service at a move cost or it can supply a product or service that is differentiated in such(prenominal) a focusing that the customer is willing to pay a price premium that exceeds the special cost of the differentiation (Grant, 2010), which defines two different climb upes to achieve competitive advantages cost flowership and differentiation.Combining the two approaches with the firms competitive scope either industry-wide or single constituent Michael Porter has defined generic strategies as follows (Grant, 2010) (Figure 7)Figure 7 Porters Generic Strategies (Porter, 1980)And a firm should focus on either one of the strategies above and avoid stuck in the middle (Porter, 1980).By delineate the firms strategy of achieving competitive advantages, the firm could be positioned in the market. Market positioning is about where you are located in the marketplace, largely as adjudicate by customers, compared to the rest (Piercy, 2009)In Chapter 4.6.1, the market positioning theory has been used to analyse HMs competitive position ing within the market and serve as basis to comparative analysis against its competitors.MethodologyAs to the methodology of this dissertation, phenomenological effigy is adopted due to the explanatory and descriptive nature of the analysis. Qualitative approach is implemented in the dissertation for that quantitative method requires the collection and interpreting of abundant accurate primary data to puff sure attain reliable conclusions, while the analysis of HM largely depends on thirdhand data and research group releases and third party opinions. Due to the limitation of my personal knowledge, move on research might be needed for more accurate information to be acquired.Chapter 3 Industry AnalysisHM operates within only a single segment sale of clothing and cosmetics (MarketLine, 2012), which locates the company as a fast-fashion retailer in global apparel industry. The following chapter examines the industry with an overview, Five Forces Analysis, PESTLE Analysis and the refore comes up with Key Success Factors of the industry.3.1 Industry OverviewThe apparel retail industry consists of the sale of menswear, womenswear, childrenswear, clothing accessories, hosiery and footwear within the global market including trade union America, South America, western Europe, Eastern Europe, MEA and Asia-Pacific (MarketLine, 2012).Figure 8 Industry Overview of spherical Apparel Industry (MarketLine, 2012)The global clothing retailing industry has witnessed cushion growth in recent years. In FY2011, the total revenue of the industry had reached $1175.4 billion, a 2.7% growth between FY2007 and FY2011 (Figure). In all categorical segments, the womenswear segment remained most profitable in FY2011, representing 51.1% of the total value of the industry (Euromonitor International, 2011).Figure 9 international Apparel Retail Industry Value world-wide Apparel Retail Industry Geography Segmentation (MarketLine, 2012)3.2 Five Forces AnalysisAs introduced in Chapter 2.1.1, the market will be analysed from five aspects emptor power, supplier power, substitutes, new entrants and degree of rivalry. The analysis will take single(a) consumers as key buyers, manufacturers and wholesalers as key suppliers, and other retailers as players.Figure 10 Forces driving competition in the global apparel retail industry (MarketLine, 2011)3.2.1 Buyer PowerIn global apparel retail industry, buyers are mostly individual consumers. As clothing has been recognised as symbols of fashion taste and social status, buyer power is weakened by heading patterns and branding of a retailer (Bhardwaj and Fairhurst, 2010). However, the low throw be of consumers strengthen buyer powers due to various choices on market. Furthermore, apparel retailers are at the end of the value chain. In a market where fashion trends change livelyly and unpredictably, they have to offer buyers as demanded. This enhances buyer power. Overall, buyer power in this industry is assessed as cha stise.3.2.2 Supplier Power study suppliers in the industry are clothing manufacturers and wholesalers, which are normally small to medium surfaced firms (MarketLine, 2011). In most countries, the supplier sector is come apart because of the absence of diversity among suppliers (MarketLine, 2011). And further fragmentation is made by the retailers ability to outsource from foreign countries, especially from low-wage and wear upon-intensive regions such as china and India (Deloitte, 2011). However, the law of national minimum wage in roughly countries raises the labour power of suppliers. So overall, supplier power is assessed as moderate.3.2.3 New Entrants condition growth has been witnessed in global apparel industry, making less race runed to the market. However, with low barriers to entry and low requirement to start up a business in the industry, there are laid-back possibilities for individuals to enter. And low switching costs for consumers and lack of variety in produc t differentiation in the market is beneficial for new entrants to compete. However, in some countries (e.g. the US) the market is major(ip)ly engaged by some large corporations from case economies and strong buyer power (MarketLine, 2011). Regulation in the industry has remained little but recently corporate social responsibility issues have been heated among consumers (Idowu Filho, 2008). These factors prove that new entrants are strong threats.3.2.4 SubstitutesThere are no substitutes for apparel. However, major substitute for retailing is to buy clothes directly from manufacturers (Zentes et al, 2011). This option is strengthened by the increase of online stores. Online shopping has been increasingly accepted by consumers (Peck et al, 2011). And by running online fashion stores, large amount of overhead could be avoided. There are until now niche substitutes like home-made and couture clothing, or second-hand clothing (MarketLine, 2011). However, substitute threats are assess ed as weak.3.2.5 Degree of RivalryThe global apparel clothing industry is considered as fragmented (Jones, 2006). There are large numbers of small size retailers with the same product differentiation. And with increasing number of retailers expanding products to accessories and other diversities, rivalry in the industry has been intensified. With a moderate growth and low requirement of market entry, a high degree of rivalry has been resulted.In conclusion, the global apparel retailing industry is fragmented with moderate growth, weak threat from substitutes, moderate buyer power and supplier power. Low barrier to entry and low requirement for entrants have resulted in strong threats of new entrants and further led to high degree of rivalry.3.3 PESTLE AnalysisAs discussed in Chapter 2.1.1, the macro-environment of the industry is analysed by PESTLE analysis regarding policy-making, economic, social, technological, legal and environmental aspects (Grant, 2010).PoliticalAs for globa l apparel retailers, legislations vary among different countries and areas (Cobra, 2011). Every retailer in the industry must follow government regulations regarding goods and labour (Graham Richardson, 1997). And the political stableness is also authoritative for fashion retailers as it would directly affect their gross gross gross revenue situation and asset safety (Aspers, 2010).EconomicFor fashion apparel retailers, economic trends are crucial for their strong impacts on consumer behaviours and purchasing powers. For example, in 2011, the global economic ceding back had negative effects on fashion retailers (Euromonitor International, 2011). Because consumers with lower disposable income regard clothing as functional item, while with high disposable income branding became important as a symbol of social status and fashion taste (MarketLine, 2012). Price fluctuation of raw materials cotton plant price for apparel retailers has significant impacts on the industry (MarketL ine, 2012). Interest rates also would affect gross sales and high interest rates entice to difficulties to trade overseas (Arnold, 2010). Moreover, currency situation is important as the exchange rate influences the value and trades of retailers (Browne, 2000).SocialIncreasing attentions from mankind have been focused on corporate social responsibilities (CSR) of apparel retailers, mainly regarding labour conditions, such as nurtureion of workers rights, maintaining safe working conditions, reasonable wage and no child labours (Idowu Filho, 2008). Also, for global fashion retailers, cultural differences between counties are crucial due to different fashion trends, consumer behaviours, or local customs.TechnologicalThe development of technology has enabled global apparel retailers with e-commerce and international trade more efficaciously (Euromonitor, 2011). And with the implementation of high technology, supply chain has changed significantly with global outsourcing, real-t ime update, and continuous renewal (Lopez and Fan, 2009). Moreover, online shopping has been increasingly accepted by consumers, which initiated a new channel for retailers to cut costs by less middlemen and no store rent (Peck et al, 2011).LawGlobal apparel retailers need to follow different government legislation regarding employment and production (Graham Richardson, 1997). For instance, in some countries, such as the UK, there is national minimum wage to protect employees rights (Low Pay Commission, 2011). And tariffs from international trade are also important for international retailers to abide by.EnvironmentalEnvironment protection has remained a heated issue among apparel retailing industry, especially issues like chemical restrictions and pollutions during production (Euromonitor International, 2011). It is also crucial for retailers to save energies and materials and wither environmental impacts during product life cycle (PLC) (Chapter 2.1.3).From the above analysis, g lobal apparel industry largely depends on political stability, government legislation, high-technology, public relations. And fluctuating price of source remains a major challenge to apparel retailers.3.4 Key Success FactorsAs introduced in Chapter 2.1.1, Key Success Factors of apparel retail industry is analysed with the Grant model by examining the demand and competition of the industry as followingFigure 11 Identifying Key Success Factors of Global Apparel Retailing Industry (Grant, 2010)Therefore, from the analysis above, for a global apparel retailer, cost efficiency is one of the crucial factors for that low cost hold ins profitability and efficiency indicates fast responding time to meet demand, allowing fashion and whole step at the best price (HMs business concept, HM, 2011a). Brand strategy also plays a key role in apparel retailers success as it facilitates customer loyalty. Differentiation of style in fashion industry positions the companys competitiveness and brand c atch in the market. Global expansion strategy of an apparel retailer is also essential as choices of global markets and international strategy decide retailers future development, global presence and even profitability (Deloitte, 2011). The continuously heated issue of corporate social responsibility also remains the key to companys brand image among public and future growth. It plays a vital role in companys success due to the heated social issue of environmental protection and labour conditions (Idowu Filho, 2008)In the following chapter, the company will be analysed starting based on key success factors to seek for unique interpretation of HMs performance.Chapter 4 Analysis of HMThis Chapter is mainly focuses on analysis of HM, starting by analysis based on four key success factors of the industry, followed by competitive positioning analysis, financial analysis, and SWOT analysis, and ended with recommendations.4.1 Operations StrategyHMs business concept is to offer fashion and quality and the best price (HM, 2011a). To make sure the company follows the lead-in fashion trends, quality of designing and lead time of distribution are important (Slack et al, 2010). And the offer of best price needs to rely on the basis that cost from each stage has been minimised.4.1.1 Reduction of CostsCost-consciousness at both stage remains the key to HMs operations (Zavrnik, 2007). To achieve the growth target with offering best price, HM has a professional buying team (HM, 2011a). The company ar reachs its buying activities fit in to decisions from design team (MarketLine, 2011). The buying team achieves lowest cost by purchasing in bulk with the right products from the right market (Zavrnik, 2007).With no factories itself, the company outsources its product manufacturing to approximately 700 suppliers, mostly in Asia and Europe (HM, 2011a). The manufacturing locations are divided by the level of fashion-sensitiveness the fashion-sensitive collections are normally man ufactured within Europe to cut the lead time while the cost-sensitive and sustainable collections are produced in Asia to allow the lowest possible price and achieve economies of scale (HM, 2011a).Furthermore, HM focuses on create long-term relationships with suppliers and manufacturers (HM, 2011a). HM does not own any factories (HM, 2011a), so quality control over the whole physical process might be a problem. Due to fast responses to fashion trend, there is usually not enough time to perform detailed quality control. Therefore the company has been involved in accusation of poor quality. So, dependable suppliers could not only provide HM with lowest price, but also ensure the quality of products from long-term cooperation and mutual understanding.Moreover, as a fast-fashion retailer, HM has lead time from weeks up to six months (HM, 2011a), which is slower than its strongest competitor Zara (Inditex Group) of maximal 14 days. However, faster responses indicate higher cost, HM fo cuses on drop-off of cost and achieves balance between fast-fashion and price, allowing averagely 30% 50% lower price than Zara (Larenaudie, 2004)4.1.2 Speed of ResponsesHM holds the point that the right lead time should be balanced between price, time and quality instead of pursuing save short lead time (Euromonitor, 2012). However, as a fast-fashion retailer, quick responding to fashion trends, consumer demand and other market changes is still key for the company (Grant, 2010). The company achieves fast responses by integrating downstream and being efficient at every stage (HM, 2011a).HM has a professional design team. The in-house design team, headquartered in Stockholm with over 150 internal designers, focuses on have inspirations and information from multiple resources such as news, travelling, streetstyle and various exhibitions and catwalks (J.P.Morgan, 2012). This cross-functional designing could ensure the quick response to market change.High technology has also been us ed by HM to ensure the speed and efficiency of supply chain and enable changes could be made quickly enough and design obligation then could be fasten (Bruce and Daly, 2006). HM has conducted top-class computerised design software and construct common IT platform that enables quick information exchange between the process of designing, production and warehouse. The group set only limited stocking area in each store to keep maximum area for display. So the replenishment needs to be backed up by effective distributions harmonize to the daily sales. The immediate sales data communication serves as a strong basis for fast response and efficiency at every stage.With this in-house design and outsourced production process, HM claimed that their lead time could range from weeks to up to six months fashion-conscious within weeks and sustainable and classics could be months (HM, 2011a), achieving balance between price, quality and time.4.2 Marketing Mix StrategyAfter analysing the cost and efficiency strategy of the company, marketing strategy will be analysed first with the companys unique marketing mix (Chapter 2.1.2).PriceHM makes effort to differentiate its brand image from other fast-fashion retailers with competitive low price (Zavrnik, 2011). The company makes efforts to offer best possible price in spite of fluctuating costs of raw materials. However, the price range of HM products varies according to designs, current interest rates, and tariffs (Larenaudie, 2004).ProductClothing is the main product for HM. The company offers a wide range of designs for clothing, from classics to basics, to designs following the latest fashion trends. In addition, HM expands product mix to make the most of sales opportunities, such as make-up and fig out jewellery at competitive prices, and home furnishings for young households (Euromonitor, 2011). Furthermore, as fashion trends intertwined (Steele, 2011), the new sustainable collection and classics collection enable a durab le Product Life Cycle (Chapter 2.1.3) to maximize the design and avoid quick decline.PromotionMarketing promotion is crucial for apparel retailers to build the brand image (Cooklin, 2006). Various methods could be adopted, such as advertising, social media presence, personal selling, publicity, presentations (Cooklin, 2006). For HM, inviting guest designers has been a major haulage to customers (Euromonitor International, 2011). Also, HM has two major fashion seasons annually spring season and autumn season, and two sales season summer sales and the Christmas and New Year season (HM, 2011a). The two sales seasons promote products and attracts more customer visits with even lower prices.PlaceHM has strong global presence with over 2500 stores by the end of 2011 (MarketLine, 2011). However, the majority of HMs store-based apparel sales come from Europe, with Germany contributing the most, followed by the UK and France (Euromonitor International, 2011). In addition, HM has a growth target to increase the number of stores by 10% to 15% every year (HM, 2011a). But the company does not own any store facilities. By renting store exposit the company could achieve flexibility to the best level and make sure store locate at the best possible position. And the company has leading distribution system enabling continuous replenishment based on real-time update sales data (Bruce and Daly, 2006).4.3 Brand and Multi-Channel StrategyIn the fashion retail industry, brand image is crucial in building customer loyalty (Bhardwaj and Fairhurst, 2010). HM is the most important brand for the group and enjoys strong presence internationally. With only limited investment in publicizing on TV, HMs collections with famous guest designers and celebrities have been the major hit to attract customers. From Karl Lagerfeld for HM in 2004, M by Madonna in 2007, jemmy Choos shoes and bags in selected stores in 2009, to the exciting autumn hit Versace for HM in 2011 and Marni at HM in 2012 , the guest collections fully showed attraction to customers, which interlink the price-conscious brand unneurotic with great design and quality (Euromonitor, 2011). As a mass-production fashion retailer, HM could raise brand impacts globally by cooperation with celebrities and famous brands to create the feeling of luxury and limit edition for its own customers. By collaboration with HM, luxurious brands could open up customer market with lower disposable income.Figure 12 Images of HMs Collections by Guest Designers and Celebrities (Versace, Madonna, jimmy Choo) (HM Annual Report)In addition, HM sells not only through store premises, but also over the internet and catalogue books, which with brand strategy, composes together HMs multi-channel strategy.HM has made positive progress by promoting limited online sales globally allowing consumers in areas with no HM stores to purchase online, which boosts global brand image for HM and generates sales (MarketLine, 2011). The company als o produces own online webzine HM Life, linking to its online stores and fashion items with latest trends (Euromonitor International, 2012).Furthermore, HM has successfully combined social media strategy to build up its brand and customer loyalty with Facebook page, twitter direct, YouTube account and special online social hub (MarketLine, 2011). For example, HMs Facebook page has competitive engagement rate of 2% (likes, comments, share, etc.). And the presence of free smartphone app for its brand is available to keep customers update with new products and sales.Figure 13 Images of HMs Social Media Network Facebook scallywag, Twitter Page and Youtube Page (HM, 2012)With the success of clothing, HM further extend the product range to maximise sales opportunities by selling low cost make-up and jewellery and home furnishing (MarketLine, 2011).Following Inditex, the group has transferred into multi-brand channels. Besides HM, the group also has four independent brands, namely COS, M onki, Weekday and Cheap Monday, allowing the company expand its network further and avoiding saturation in European market (Euromonitor, 2011). However, these brands still only have limited presence globally.4.4 Domestic and Global StrategyWith a unique strategy and clear brand identity, a fashion retailer should then develop its global expansion for further growth. The global expansion strategy and process could be better illustrated with Uppsala Model theory (Chapter 2.1.4).4.4.1 Market plectron and EntryHM, headquartered in Sweden, started expansion into neighbouring countries Norway (1964) and Denmark (1967) (MarketLine, 2011), and followed by entering other countries and regions (Chapter 2.1.4) (Appendix 1). As introduced in Chapter 2, similar culture or shared borders could all reduce psychic distances between foreign customers and can encourage the companys global expansion (Ghemawat, 2001). Western Europe still witness HMs majority of sales growth, which shows the effects of shorter psychic distances.Following Uppsala model (Chapter 2.1.4), after gathering market knowledge and analysis of potential growth, the company entered global market by acquisitions and with greater levels of market commitment (Appendix 1). With an ambitious growth target of 10% to 15% increase in store numbers every year (HM, 2011a), the company strategically selected global markets and made effort to expand globally step by step. Gradually, the brand established its global name among consumers.However, the dominance of Western Europe leaves HM reliant on this region (Euromonitor, 2011). Economic recession within the Eurozone could influence the sales directly, and saturation would limit HMs further growth potential. At the meantime, the apparel industry in other districts prospers, especially Latin America, with a forecast sales value growth of 25%, where HM is absent (Euromonitor, 2011). Eastern Europe and Asia Pacific is also forecast with high sales value growing potential of 32% and 33% one by one (Euromonitor, 2011).4.4.2 Domestic StrategyAfter selection and entry into global market, HM has witnessed strong global growth. Compared with international market, domestic market has moderate performance. However, headquartered in Sweden, HM still possesses large portion of market share (Euromonitor, 2012).The companys sales growth in Sweden remains steady (Figure 14). With strong purchasing power, consumers in Sweden tend to buy clothes for enjoyment over necessity. Most of sales were conducted in store purchasing over the past five years (Figure 1