Segmentation

SAVONIA UNIVERSITY OF APPLIED SCIENCES UNIT OF BUSINESS AND ADMINISTRATION, KUOPIO

RESEARCH ON MARKET READINESS FOR FASHION BRAND ENTRY INTO SHIJIAZHUANG Feasibility Study of H&M Company Entry into Shijiazhuang Market

Mengjia Chang Business Administration Bachelor‟s Thesis Degree Programme in International Business

April 2011

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SAVONIA UNIVERSITY OF APPLIED SCIENCES UNIT OF BUSINESS AND ADMINISTRATION, KUOPIO
Degree Programme, option

Degree Programme in International Business
Author(s)

Mengjia Chang
Title of study

RESEARCH ON MARKET READINESS FOR FASHION BRAND ENTRY INTO SHIJIAZHUANG (Feasibility Study of H&M Company Entry into Shijiazhuang Market)
Type of project Date Pages

Thesis
Supervisor(s) of study
1 2

June 2011

44 + 8
Executive organisation

Jari-Pekka Jääskeläinen Heikki Likitalo

H&M Company

Abstract

The purpose of this study was to find out whether the Shijiazhuang City in China is a proper market for H&M. This thesis introduces the H&M Company, the situational analysis of the relevant market, and the attitude of Chinese people living in Shijiazhuang City towards H&M. The author chose quantitative method as research methodology. Data was collected by using a questionnaire consisting of fourteen multiple-choice questions and one open-ended question. The respondents were all native Chinese people living in the Shijiazhuang City. 52 responses were collected. Through analyzing the feedbacks, the following was discovered: firstly, most of the respondents wished to have a H&M branch in the Shijiazhuang city. as there were already 47 stores in China, it would be easy to establish one in the Shijiazhuang city using the same operational mode; secondly, the purchase power of local people was low so the pricing strategies might have to be changed. In conclusion, the H&M company‟s entry into the Shijiazhuang market is a challenge and much consideration is required before any attempts to launch operations can be made....