H&m in japan

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H&M in Japan


H&M is a leading brand in terms of fashion clothes and garments.
Its fame is spread worldwide. However, the company aims at expanding in Japan this year. This report will first analyse the aspects of the Japanese markets and its potential. This will lead to reveal the challenges the brand will have to face by entering this market. Then, itwill define the best way to enter the country.
It will finally appraise the benefits that the collaboration of Madonna could bring to the company in Japan.


Hennes and Mauritz, usually named H&M is a Swedish company selling fashionable inexpensive clothes. It a leading brand, which fame is spread worldwide. H&M owns more than 1 300 stores in 24 different countries. Itis present in America since 2000, and it recently entered Asia. The next destination where the company plans to expand is the Japan. Its population is really attractive and constitutes a real potential as they are really fashionable people.

However, the company needs to analyze and gather more information about Japan and its market before entering the country. The report will firstestablish the macro environmental examination of the country, thanks to the SLEPT analysis, the 12C framework will describe every aspect of the market and the Hofstede analysis will develop the awareness of the Japanese culture. The second part will expose the main challenges that the company will have to face. The third part will determine which entry mode is the best suited for the Swedish company.Finally, the last part will analyze if the collaboration of the company with the famous singer Madonna will have beneficial impacts.


Part 1: Analysis of the Japan market
1) SLEPT - PEST Analysis of Japan
2) The 12C Framework
3) Hofstede analysis

PART 2: The principal challenges of the Japanese market
1) Cultural challenges
2) Product adaptation3) Competition challenges

PART 3: Market entry mode
1) The general strategy of H&M
2) The best suited strategy to enter Japan

Part 4: Impact of Madonna’s Collaboration with H&M in Japan
1) Impact of using a celebrity on a brand.
2) The collaboration of H&M and Madonna 
11) Facts
12) Impact in Japan


Part 1: Analysis of the Japanmarket

1) SLEPT Analysis of Japan

o The Japanese population is estimated at almost 128 million inhabitants. This population is concentrated in large cities (80% of urban population).

o Japan has one of the highest life expectancy rates in the world, equalling 82.02 years of age as of 2006. However, the Japanese population is quickly aging.

o The agedistribution is:
0-14 years: 13.8% (male 9,024,344/female 8,553,700)
15-64 years: 65.2% (male 41,841,760/female 41,253,968)
65 years and over: 21% (male 11,312,492/female 15,447,230)
o The population growth rate equals 0.08% but there is a sizeable issue: According to the demographers’ estimations, the Japanese population is expected to drop to 100 million by 2050 and to 64million by 2100.

o The Human Development Index is high: 0.949. It represents the 7th position in the world.
o 99% of the population is literary and more than 90% have a high school level of education.

o Japanese companies are often hierarchical and disciplined. This is the reflection of their social history, the educational system and the practice of life employment in largerfirms[1].
o There is no real ethnic diversity, but the major religions are split between Shintoism and Buddhism (84% of population)

o The tax system is continuously revised in order to improve the foreign investments in the country. For instance, new laws were passed in the past 2 years to eliminate double taxation on foreign profit, as well as the elimination of the withholding tax. ...