At first, apparel market value keeps growing during 2009 to 2014 moderately, and it is expected to increase about 5.5%. By 2018, total revenues will increase to $1,694 billion.
I was surprised at the fact that the apparel industry keeps expanding because apparel is not a new emerging industry, like animation industry, rather it is old. I could not understand why apparel industry increases because people have been buying cloths, so the industry should be stable.
Our group chose H&M, and looked at it closer.
According to the company profile, H&M had about $19,708 million of total revenue in 2013 and H&M made 6.4% growth over 2012.
H&M's strategy to expand is
going into new markets, especially Asia, Oceania, and America, other that European countries,(market development)
starting on line sales (market development & market penetration), and
creating a new fashion brand, for example sports collections (product development).
The competitors of H&M are
Marks and Spencer Group plc.,
Otto (GmbH & Co KG),
Arcadia Group Limited, and
Fast Retailing.
Marks and Spencer Group plc. is a major British retailer.
What is different about Marks and Spencer group is that they started food business (product development).
They keep investing on food business by opening 150 new UK M&S Simply Food stores over the next three years, and starting food business overseas especially in Western Europe.
Otto (GmbH & Co KG) is a mail order company mainly based in Germany and France.
It has a notable characteristic as a mail order company.
There are a lot of way to expand. Product/market expansion grid shows 4 different way to expand. Within one way, for example product development, there are a lot of opportunities, like starting new food business and creating a new sports collection. Each companies identify their own growth opportunity. For me, apparel industry seems that there are no way left to expand, but I thought there are infinite opportunities in every industry.
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| product/market expansion grid |
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