Due to the insurgency in global marketing thought and technological development the business enterprises are now become more and more competitive. In Cloth Retailing Industry (also in most other sectors) the production concept has changed through the global availability of goods and services. Thus a company, located in Europe or somewhere else, is floating around their production units in other parts of World. Due to the availability of cheap and skilled human capital in Asia most western corporations are highly influenced to move their production units or source their products from these countries which enable them to gain competitive advantage over their competitors.

1. Swajan Das
Katarzyna Żabko
H&M’s Offrshoring strategy from
Bangladesh: a triumph or temptation?

3. Contemporary Marketing Thoughts & Principles :
4 Eras in Thought Development– (Wilkie and Moore, 2003)

4. Contemporary Marketing Thoughts & Principles :
Is the world Globalised?

5. Contemporary Marketing Thoughts & Principles :
The Triple Bottom Line of 21st Century Business, John Elkington, 1997
 These are the parameters to measure
a organisation’s success in terms of
Social, Eeological and Eeconomical
values
 These concepts first used by Freer
Spreckley in 1981. He argued that an
enterprise should measured and report
on Social, Environmental and
Financial Performance
 These principles demand a business
organisation’s responsiblity should be
pro-stakeholders ‘interest rather than
shareholders

6. Global Apparel Industry Overview

7. Global Apparel
Retail Industry
Growth Rate
in compare
with Industrial
Production
Growth Rate
in the World

8. offers fashion and quality at the best price

9. 2700 Stores in 48 Markets
2011: Romania, Croatia & Singapore
2010: South Koria & Turkey
2009: Russia
2008: Japan
2007: Hong Kong & China
2000: USA , Spain and other European Market in
Subsequent Years
1990: France
1980: Germany & Natherlands
1976: London, UK
1974: Listed in Stockholm Stock Exchange
1968: Bought Mauritz Widforss & refromed name Hennes
& Mauritz (H&M)
1964: Norway
1952: Stockholm, Sweden
1947: First store opened in Vasteras, Sweden selling
womenswear with name ‘Hennes’
offers fashion and quality at the best price

10. Business Concept Seven Core Values
High volume efficiency Simplicity
Ensuring best price through: Straight forward
less middlemen Constant improvement
thorough knowledge in design Entrepreneurial Spirit
fashion and textile Cost Conscious
sourcing right product from right market Team work
and being cost conscious at every stage Belief in people
10-15% growth target per year in number of stores
and comparatble sale unit. And self-financed.
offers fashion and quality at the best price

11. offers fashion and quality at the best price

12. H&M’s Offshoring Forms, Motives & Localisation

13. offers fashion and quality at the best price

14. RMG Sector in Bangladesh
Industry Attractiveness
and H&M

15. Population: 160 Million
Literacy Rate: 56.8% (age 15 or over)
GDP in 2012: USD 282.229 Billion
Poverty Level: 31.5% below the Std.
Economy: 50% Service and 30%
Industrial based
Export in 2011: USD 22.924 billion
Trade deficit: USD 6.7 billion

19. H&M and Bangladesh
 Partner for more than 30 years
 25% of its total Products come from BGD
 H&M is the single largest buyer for BGD
 8% of the total export goes to H&M - worth USD 1.5 Billion
 In next 5 year H&M plans to make it double
 H&M has 250 suppliers from BGD
 It operates training centre in BGD to educate theworkers
 H&M seeks wage hike in BGD
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Performa
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