Background of Franchise

H & M Hennes & Mauritz AB (H&M) is a swedish multinational retail-clothing company, known for its fast-fashion clothing for men, women, teenagers and children.

In 1946 the company's founder Erling Perrson was on a trip to the United States and came up with the business idea of offering fashionable clothing at attractive prices. In 1947 he opened his first shop Vasteras, 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 changes to "Hennes & Mauritz" (H&M). In 1998, the company successfully gained control over the intials "HM" for its internet domain HM.com

1947 - The first store opens in Vasteras, Sweden, selling women's clothing. The store is called Hennes.

1952 - Hennes open in Stockholm.

1964 - The first store outside Sweden opens in Norway.

1968 - Founder Erling Perrson buys Mauritz Widfross, a hunting and fishing equipment store, Sales of men's and children's clothing begin. The name is changed to Hennes & Mauritz. 

1974 - H&M is listed on the Stockholm Stock Exchange.

1976 - The first store outside Scandinavia opens in London, in the UK.

1977 - Impuls stores, focused on teenagers, are launched. Sales of cosmetics begin.

1980s - Stores open in Germany and the Netherlands. H&M acquires the mail order company Rowells.

1990s - Progress continues in Europe with the opening of the first store in France in 1998. Newspaper and magazine advertising is complemented by outdoor advertising featuring famous models. In 1998 H&M online shopping begins. 

2000 - The first US store opens on Fifth Avenue in New York. The same years stores open in Spain. In subsequent years, H&M opens in more European markets.

2004 - H&M initiates designer collaborations starting with Karl Lagerfeld. More collaborations follow with Stella McCartney, Viktor & Rolf, Madonna, Roberto Cavalli, Comme des Garcans, Matthew Williamson, Jimmy Choo, Sonia Rykiel, Lanvin, Versace, Marni, David Beckham, Anna Dello Russo, Maison Martin Margiela, Isabel Marant and Alexander Wang.

2006 - A major expansion of online and catalogue sales begins with the Netherlands as the first market outside the Nordic region. The first stores in the Middle East open via franchise.

2007 - The first Asian stores open in Hong Kong and Shanghai. In the same year, the new concept store COS is launched. The expansion of online and catalogue sales continues with the inclusion of Germany and Austria.

2008 - H&M opens its first Japanese store in Tokyo and acquires fashion firm Fabric Scandinavien AN, which comprises the brands Weekday, Monki and Cheap Monday.

2009 - The first H&M stores in Russia open. Beijing also gets its first H&M and Lebanon becomes a new franchise market. H&M Home is launched. Weekday and Monki open in Germany.

2010 - The first H&M stores in South Korea and Turkey open. Israel becomes a new franchise market. Online shopping starts in the UK. The first H&M Home stores open outside Sweden. Monki moves into Asia with a store in Hong Kong. H&M becomes the world's largest consumer of organic cotton and continues to increase its use of sustainable materials in the following years.

2011 - H&M opens in Romania, Croatia and Singapore, as well as in Morocco and Jordan. COS opens in Sweden, and Monki and Cheap Monday in the UK. The H&M Incentive Program - a reward and recognition programme for all employees - starts. COS and Monki launch shopping in 18 markets.

2012 - H&M opens in Bulgaria, Latvia, Malaysia and Mexico, and via franchise in Thailand. COS opens in Finland, Italy, Poland, Hong Kong and Austria, and opens via franchise market in Kuwait. The Monki brand grows in China and Weekday opens in the netherlands.

2013 - The first H&M store in the southern hemisphere opens in Chile. H&M also opens in Estonia, Lithuania and Serbia. Indonesia becomes a new franchise market. H&M introduces online shopping in the US. The other stories brand is launched in several European countries. COS, Monki, Weekday and Cheap Monday also open in new markets. Weekday and Cheap Monday launches online shopping. A global clothing collecting initiative starts in selected stores.

History in Malaysia

The first store in Malaysia opened on 22 September 2012, and is located at Lot. 10, Kuala Lumpur and spans three levels. The second stores at Setia City Mall in Shah Alam, has opened since 4 October 2012. Another store is located at Paradigm Mall in Petaling Jaya. on 6 August 2013, H&M has opened its fourth store and it first store in the northern region which is at Gurney Paragon Mall, Penang while on 24 October, H&M has an opened a store at 1 Utama Shopping Centre, Petaling Jaya. On the following week, H&M has also opened a store located at Avenue K, Jalan Ampang, Kuala Lumpur. 

18 September 2013 - Sunway Pyramid, Petaling Jaya

5 December 2013 - 1st Avenue, Penang

30 May 2014 - 1 Mont Kiara Mall

6 June 2014 - Hatten Square, Melaka

30 October 2014 - The Spring Mall, Kuching, Sarawak.

20 November 2014 - One Borneo Hypermall Kota Kinabalu, Sabah

Franchiser Management 

Executive management team and country managers

H&M has a matrix organisation in which the Managing Director appoints the members of the executive management team and the country managers.

The executive management team consists of the Managing Director and fifteen other individuals, six of whom are women. The executive team is responsible for the following departments : Finance, Accounts, Buying, Sales & Marketing, Production, Sustainability, Expansion, New Business, Brand, Communications, Investor Relations, Human Resources, IT, Logistics and Security.

H&M's board of Director is led by the Chairman of the board, Stefan Person. The Board of Director appoints the Managing Director, who is responsible for the daily management of the company in accordance with the instructions issued by the Board.

The Auditing Committee monitors the company's financial reporting and is the main channel of communication between the Board and the company's auditors.

The administration of the company by the Board and Managinf Director, and the fianacial reporting by the company, are reviewed by auditors appointed by the Annual General Meeting.

Managers and employers are guided by important internal documents such as the Code of Ethics, which also provides a basisfor the strong values excapsulated in 'the spirit of H&M' - including common sense, continues improvement, cost consciousness, salesmanship and belief in people.

CEO - Karl - Johan Persson

Finance - Jyrki Tervonen

Accounts - Anders Jonasson 

Buying - Stina Westerstad

Sales & Marketing - Mattias Ankarberg

Production - Karl Gunnar Fagerlin

Sustainability - Anna Gedda

Expansion - Fredrik Olsson

New Business - Madeleine Persson

Brand - Anna Tillberg Pantzar

Communications - Kristina Stenvinkel

Human Resources - Sanna Lindberg

IT - Kjell - Olof Nilsson

Logistics - Jonas Guldstrand 

Security - Cenneth Cederholm

Franchisor Operation

From idea to store : The design process

Fashion, quality and sustainability - all at the core of design process.

H&M's design department employs 160 in-house designers and 100 pattern makers, as well as several design assistants and print designers.

The team is large and diverse, representing different age groups and natiolities who draw inspirations from every corner of the globe and a wide variety of sources. From art, cinema, magazines and music to street fashion, trade shows and trend seminar.

Planning and Buying

The right mix of moderns basics, current fashion and the very latest trends.

H&M concept teams consists of designers, buyers, assistants, pattern makers, a section manager and a controller, who are together responsible for producing just the right mix of garments, accessories and other products. Team members are all knowledgeable when it comes to fashion and trends, and keep up to date with H&M customers and their interests.

Flexible assortment planning ensures that each stores's selection feels updated, on trend and relevant to its customers every day of the year.

Production process

H&M doesn't own any factories, instead work with around 900 independent suppliers - who are close, long-term partners. Mainly in Europe and Asia. These suppliers manufacture products and generally source fabrics and other components needed.

Customers must feel confident that everything they buy at H&M is designed, produced and distributed with the greatest consideration for people and the environment. The H&M production offices located in our sourcing markets are the main points of contact for the local suppliers, handling timing and practical aspects of all orders. 

Ordering each product at the optimal moment is an important part of finding the right balance between price, time and quality. lead times vary from a few weeks to six months, with high volume products such as basics and children's wear ordered far in advance while more trend-led garments in small quantities can be produced at considerably shorter notice.

Logistics and Distribution

Efficient logistics and greener transport make sure the latest trends and the right basics are always available in stores - at the best price and with minimum impact on the environment.

Efficient flows

H&M is both importer and retailer, and make careful choices regarding every transport link in the supply chain form factory to store.

Efficient flows and cost - consciousness at every stage are crucial to our success. These factors ensure that the right goods end up in the right quantity for each store - and at the best price for customers.

The greater part of shipments from suppliers' factories goes directly to logistics centres in our markets, which support stores in their geographic vicinity independently of national borders. Further, store do not have back up stocks, but are replenished as required from the distribution centers. 

Green transport

One of H&M challenges is to fulfill the requirements and keep up with the rapid pace of H&M's growth while making sure our transports have the least possible impact on the environment.

Therefore strive to : 

 - avoid air and road transports whenever possible

 - work with environmentally friendly transport companies

 -  have more efficient logistics with as little impact as possible on the environment. 

Our stores 

The stores are the heart of H&M, everything begin with the customer and the customer offering. H&M want to give customers inspiring shopping experiences in all 3500 stores and online.

Each store is unique - but should also be easily recognizable. Interiors have to provide a functional and flexible framework that invites customers to step inside and guide them through the different departments, while offering an exciting shopping experiences.

Displays, both in windows and inside, put parts of the current in-store selection in focus and provide styling tips and inspiration. Global display guidelines are created in a large 'test store' near the H&M Head Offices in Stockholm. Displays are changes frequently and themed around an association or a feeling, but always keep the clothes in focus.

Shop online

Distance selling is a vital and growing complement to stores. Shopping online with H&M and other brands should be just as inviting and inspiring as visiting the physical stores. The H&M shop online is completely mobile adapted.

These digital stores complete and strengthens H&M's profile by increasing the service provided to customers and by making H&M even more accessible.

Risk and Uncertainties

A number of factors may affects the results and business of the H&M group. Certain of these can be dealt with through internal routines, while others are affected more by external conditions, macroeconomic changes, sustainability issues, external factors in production countries, trade interventions, foreign currencies and taxes, but also in connection with expansion into new markets, the launch of new concepts and how the brand is managed.

H&M Experience

The so called 'fast-fashion' industry, these days high street brands like H&M present their seasonal collections during Fashion week, at the same time as the luxury brands, giving them no time at all to 'copy' the catwalk as they are part of it themselves. And everyone in the fashion industry knows that luxury brands and high street brands more than occasionally use the same suppliers. Factory workers are paid the same salary to produce luxury goods as so-called 'fast-fashion', under the same conditions. And H&M designer collaborations, produced by the company's regular suppliers, prove that the cost of producing high-end designer collections needn't be high.

The reason big brands like H&M have reasonable prices are their large orders, clever logistics from years of experience and development, and the fact that H&M fashion is sold without middlemen and in H&M's own stores.

generally, seasonal trends are less important today than a decade ago. an unlimited online information flow makes everyone a fashion expert, as opposed to the past when a lucky few had access to fashion shows. Consequently, fashion today is more about individual style. Its about how you interpret fashion  news and information and how you make it work for you. This gives clothes and trends longevity. Its liberating and creative era in the history of fashion. Today consumers have access to fashion news at the same way fashion media and buyers have, and great fashion is available at affordable prices so people can build the wardrobe they want. fashion has become democratic.

Styling and creativity is key, and you hold on to your fashion finds so you can wear them over and over again, with different accessories and in different combinations.