Contents

1. Executive Summary 2. Background Information 1.1 H&M 1.2 Australia 3. Economic and Financial Environment 3.1 Economy and Financial Sector 3.2 Australia and Sweden’s Trade Relationship 3.3 Media within Australia 4. Political and Legal Environment 4.1 Political structure 4.2 Legal Structure 4.3 Australian Government Policies and Regulations 4.3.1 Customs 4.3.2 Quarantine 4.3.3 Corporate regulation in Australia 4.3.4 Taxation 5. Cultural Environment 6. Target Market 7. Recommendation 8. Appendix 8.1 Appendix 1: Hofstede’s Classifications by country

8.2 Appendix 2: SWOT Analysis

8.3 Appendix 3: H&M Store Locations

9. Bibliography

1. Executive Summary

H&M was established in 1947 in Vasteras, Sweden, by Erling Persson. It is now a global brand with stores in 37 countries across Europe, Asia, North America and the Middle East. It is a clothing, cosmetics and footwear brand with around 100 in-house designers and buyers creating collections for men, women, teenagers and children.

Australia is the 6th largest country in the world, with a total land area of 7 682 300 square kilometres and a coastline 36 735 kilometres long. Australia is a very multicultural country, which is reflected in the fashion and lifestyle choices of Australians, with a strong influence for many designers coming from Indigenous art and culture. Fashion in Australia is a $14 billion industry (Department of Foreign Affairs and Trade 2010).

Australia has one of the strongest and most competitive economies in the world, enjoying almost two decades of economic growth (Department of Foreign Affairs and Trade 2010). The transparency of the Government and efficient regulatory environment make Australia an attractive place for H&M to do business in. Australia has low barriers to trade, no foreign exchange controls and an internationalized currency. The strength of Australia’s financial sector was proven through the recent financial crisis, suggesting it is a good market for H&M to enter.

Australia’s system of government in founded in the liberal democratic tradition, a capitalist political ideology. Australia will be undergoing a federal election within the next 12 months, which could effect in a change in government. Australia has been ranked as one of the most business-friendly economies in the world, offering a business environment that is both stable and flexible. There are now substantially lower barriers to trade and investment in Australia (Department of Foreign Affairs and Trade, 2008). All exporters to Australia must comply with certain requirements, including customs, quarantine, labeling, corporate regulation and tax.

Cultural aspects such as climate, education, religion and aesthetics should be considered, along with Hofstede’s Individuality and Power Distance classifications. H&M employs a glocalisation approach in its marketing, using similar advertising and promotion for similar target markets in every country. Therefore, the target market of 14-30 year old females has been selected for the Australian branch.

2. Background Information

1. H&M

H&M was established in 1947 in Vasteras, Sweden, by Erling Persson. It is now a global brand with stores in 37 countries across Europe, Asia, North America and the Middle East. It is a clothing, cosmetics and footwear brand with around 100 in-house designers and buyers creating collections for men, women, teenagers and children.

Germany is the biggest market, representing a third of total sales; followed by the UK and Sweden. In 2000, H&M expanded to the United States, opening its first overseas store in the Manhattan district of New York. H&M now have around 100 stores across the US, expanding to