Monday, September 22, 2008
H&M: green field market entry to Japan
H&M entered Japan's fashion market initially using a green field strategy, opening stores. On September 13, 2008, H&M opened the first store in Japan in Ginza, and is planning two more stores in Shibuya (see picture below) and in Harajuku.
H&M adapted it's global way of doing things to Japan's market needs - for example, H&M introduced "Quality Managers& in it's Japan store, in order to match Japan's consumers high expectations for quality (and I guess also to avoid problems with Japan's recently introduced product liability laws).
One week after opening, customers are queuing in line to enter the store - typical waiting time is about 2 hours, daily number of visitors to the store are estimated ot be about 8000/day.
Closest foreign competitors in Japan include US retailer GAP, and Spanish retailer Inditex (Diseno Textil SA)'s ZARA.
Biggest Japanese competitor is Fast Retailing's UNIQLO.
H&M is preparing to open the second and third stores in Shibuya (photo below) and in Harajuku.
Our comments: H&M has had a very successful start and has created a successful opening "event". To be successful longterm H&M will have to:
Building site for second store in Shibuya.
H&M adapted it's global way of doing things to Japan's market needs - for example, H&M introduced "Quality Managers& in it's Japan store, in order to match Japan's consumers high expectations for quality (and I guess also to avoid problems with Japan's recently introduced product liability laws).
One week after opening, customers are queuing in line to enter the store - typical waiting time is about 2 hours, daily number of visitors to the store are estimated ot be about 8000/day.
Closest foreign competitors in Japan include US retailer GAP, and Spanish retailer Inditex (Diseno Textil SA)'s ZARA.
Biggest Japanese competitor is Fast Retailing's UNIQLO.
H&M is preparing to open the second and third stores in Shibuya (photo below) and in Harajuku.
Our comments: H&M has had a very successful start and has created a successful opening "event". To be successful longterm H&M will have to:
- sufficiently tune to Japan,
- continue to innovate,
- compete successfully especially with UNIQLO,
- compete successfully with Abercrombie & Fitch, which is planning to enter Japan's market in 2009
Building site for second store in Shibuya.
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