Overall Argentina with H&m

Overall Strategy

Customer and market segmentation

Figure 1: Daily income per person in each class in Latin America (Worldbank, 2012)

According to the recent report by world bank(2012), the middle class in Latin America and the Caribbean grew by 50 percent in roughly the last decade also with Argentina had a very large middle class. Upper-class and lower-class sectors can generally trace their origins to more than five generations in the country (everyculture, 2006). Most of people at all level in Argentina are fashionable and modern. So, they always buy clothes in shopping mall and street outlet, not only are these found in stores, but are easily found for sale on numerous internet sites. However, both male and female in middle class of Argentine always wears jeans, t-shirt, or polo type shirt and slack all over the country (globerove, 2010). In contrast, upper classes always wear luxury imported clothes and clothes from very exclusive stores (everyculture, 2006).

Figure 2: Latin America's population growth by aged band 2012-20 (Euromonitor, 2013)

According to figure 2, it is clearly shows that the aged band 15-24 are key fast fashion segmentation opportunity, while aged band 25-34 are key for fast fashion and sport wear. This can confirm that Argentina is the country of fast fashion.

Therefore, the main customers and market segments of H&M in Argentina are fashionable, modern and trendy teenager, working men and women from lower-middle class to middle class. However, the mainstream is women because they always buy clothes for their husband and children.

What product and service should H&M sell in Argentina?

As known as Argentina is very modern and fashionable and Buenos Aires is the city of fashion and design. Argentine loves to dress well and fashion along with casual way. Moreover, they like to mix and match their costume for uniqueness (Frassinetti, 2014). Therefore, H&M should offer vary of types and styles of cloth, accessory, shoe and cosmetic for male, female, and kid.

In addition, Argentina locates in South America, this mean that the weather of Argentina will totally different from many other countries in Europe. The weather of Argentina is about 8 to 18 degree Celsius all the year. The season of Argentina begin with fall in March, April, and May and also with light rain. For this season, people need light jacket and sweater. Next season is winter in June, July, and August. Argentine needs warm clothes for example heavy jacket, long john, shirt with long sleeve, including overcoat. Then Spring in September, October, and November. There is some rain in this season, so, the cloth should be light jacket and sweatshirt again. Moreover, raincoat and umbrella are also important for this season. The last season is summer in December, January, and February. Argentine will wear the light cloth for example t-shirt, vest, jeans, and shorts. In summer, some Argentine loves to wear slipper and light canvas shoes (spanishstudies, 2009). These are the advantage of H&M that they can use the products in stock of European country to sell in Argentina because of the totally different of weather and season between two continents.

Figure 3: Percentage of internet users who bought online in each country (Kioke, 2012)

Furthermore, Koike (2012) claimed that Argentina is the country that people always shopping online with 71 percent lead other countries in Latin America. Therefore, H&M should provide online shopping service for their customer. This website should be easy to use with quality service for the example new products, promotion of H&M both in-store and online shopping. It should be including the service of order online and collect product from the nearest store. These will make more convenient and can reduce the dissatisfaction from customers.

Sell under what brand?

From 2008 to 2012, H&M brand had ranked on the top