H&M: Target Costing and Business Model Essay

In the world globalisation competitive increasingly environment, how is H&Ms business model maintain and enhance the fighting of high-speed growth? With the research of target costing and business model of system innovation theory, you send packing understand the H&Ms successful business. And you can understand to make much more profit by controlling target costing. Password 1 Accurately grasp and dig into the request of the client value. Customer, this is undoubtedly the center of the whole enterprise. Philip Kotler , who from American Marketing From EMKT.com.cn think solving the problem in accordance with the conventional innovation of logic in such a competitive market is no longer applicable. But creative thinking that is based on customers showing growing charm. It is by the sure alternative concept and product development to stimulate new markets and profit growth.Obviously, H&M is the get over of creative thinking to customer demand, H&M noted that almost every shopper likes fashionable invention and image of luxury clothes. But the vast majority of people have to wait until the clearance sale. why cannot meet the customers demand of famous brand fashion design and nickel-and-dime(prenominal) parity? According to the perspective of professional organizations Verdict Research, the average price of clothing in 1995 fell 34%. But in the same period the number of women bargaining clothes has doubled. This suggests that consumers pay more attention to the fashion style. They buy more clothes, but wearing the times less.Meanwhile, the current consumer market is showing to the two extreme sport state of luxury and save money. In the luxury mode, consumers buy product and service of high feeling, reflecting the disposition characteristics and meeting the emotional needs at any cost. In the save money mode, consumers try their surpass to find low-cost but high-quality goods. These contradictions demand implies the desire of consumers for affordable fashion. H&M Fashion Group, which is to leave the change of social structure and consumers, seeking to find crack password equilibrium point, creating a cheap fashion clothing brand positioning. It use the combination of its use of changing fashion and luxury quality and public evaluation to realize trafficking fashion like McDonalds selling hamburgers.