Hi guys,
a few days ago,
I was reading an article titled “H&M faces up to challenge of
online competitors” in The Financial Times and it talks about the problems
of H&M in online selling.
I thought you might
be interested because almost everyone of you bought something at H&M or
ordered clothes on the internet.
Basically, what
the text is about is that the company H&M has to accept that more and more
competitors such as Zalando, Zara or Asos are growing in their online presence
while H&M gets stuck and has to face a lot of selling problems on the
internet.
It is also said
that H&M has to change some things in their general
concept. What the author mentions here is that the company needs to offer for
example free delivery and returns such as the competitors, but without a big
hit to margin.
The author also
mentions that analysts at Société Générale say that H&M’s
operating profit margin has fallen enormously in the last ten years and will
drop further in the next years. As mentioned could implementing free delivery
and return help the company to rise their profit margin.
What personally
surprised me the most was that the Leader of the company Mr. Persson thinks
that the online business is as profitable as the physical stores.
In my opinion the
online business is more profitable than stores you can go to. The reason for
this is that more and more people simply just don’t want to go shopping any
more or don’t have the time for this. For these people the online store is very
important. I also think that H&M has to change some things to make their
online store more attractive to costumers otherwise there won’t be many people
any more who are going to buy things at H&M.
What do you
think about this issue?
Let me know.
