Swedish Fashion Companies - An analysis of international expansion strategies

Abstract

This thesis aims to explore Swedish fashion companies’ strategies applied to expansions abroad and to identify factors of success and failure. It analyzes empirical results from interviews, with representatives from three Swedish fashion companies, Gina Tricot, H&M and Nudie Jeans, about their international expansion strategies and compare them with theory of the topic. The applied theoretic frame of reference explains how strategy is formulated, implemented and what it consists of. How globalization has affected the formulation of strategy applied to expansion and some key elements to measure the how global a strategy is. It also discusses market entry formats, how fashion retailers select target markets and what international retailers’ failures depend on. H&M is a global fashion retailer present in 48 markets with a global strategy and a turnover of 129B SEK, Gina tricot is a multinational fashion retailer physically present in five markets with a multinational strategy and a turnover of 2.7B SEK and Nudie Jeans is a clothing brand present on 26 markets, with a turnover of 344M SEK. The analysis is limited due to the studied companies have not yet retreated from any of the entered markets. Some indicators like experience of international expansions, in combination with financial stamina, that contribute to a successful strategy are identified. To substantially decrease or minimize risk with the alternative cost of decreased profits seems to result in success. Offering a good product also seems fundamental. H&M and Gina Tricot have completely different expansion strategies from Nudie Jeans: H&M and Gina Tricot have intensive low price expansion strategies; and Nudie Jeans has an exclusively extensive expansion strategy.