Store policies and hypothetical six-months buying plan of H &M.

1. MERCHANDISING POLICIES & 6 MONTH BUYING PLAN
PRESENTED BY:
CHHAVI
KARTIKA
NEELAM
SAMMARTH
SOWMYA
TRIPARNA

2. Introduction
• 1947 Hennes open as Women’s clothing store in
Vasteras, Sweden.
• 1964 First International store opens in Norway.
• 1968 Launch of kid’s and men’s lines.
• 1972 Known as H&M, Hennes develops a cosmetic
line
• 1998 H&M joins the online market.
• 2013 Global online shopping.

3. Product Line

4. Category
Chosen
• Women’s
Sportswear
• Women’s Active
Wear

5. Strengths
• Cheap fashionable clothing
• Location of the stores
• The number of stores they
have
• Good marketing
• High barriers to market entry
• Operate on a global scale
• High growth rate
Weaknesses
• Poor quality/finish to clothing
• Competitive market
• Sourcing and operating in so
many of their clothes in other
countries can lead to lack of
quality control with clothing
and staff
Opportunities
• Online shopping
• Emerging markets such as
India and China
Threats
• Rising labor costs
• Global competitors
SWOT ANALYSIS

6. STAFF POLICY
Guidelines to adhere to:
• Must adhere to store
timings Business Hours: 9
am – 11 pm
• Must be dressed in semi -
formals, applies to both
Genders
• Strict adherence to
guidelines placed in the
Ethical book of Conduct
Benefits offered to staff
• Shop for even less: 25%
flat discount to all staff
• Benefits from shared
success: Any donation
received from the
organization from upper
management is distributed
equally to all staff members
• Training & Development
• Health & Well Being

7. E-RETAIL POLICIES
• Implementation of internet cookies
(Invasion of Privacy):
“WE USE COOKIES: H&M uses cookies to give
you the best shopping experience. If you continue to
use our services, we will assume that you agree to
the use of such cookies.
Find out more about cookies and how you can
refuse them.”
• Refunds for online purchases:
“If you mail in your return, you will receive an
email confirmation. Please allow up to 2 weeks for
the credit to be reflected in your account. Allow up
to 2 billing cycles for the credit to appear on your
credit card statement.”

8. RETURN & EXCHANGE POLICY
• Returns with Original Receipt: Unwashed, unworn or
defective merchandise may be returned within 30 days of
purchase date for a full refund. All returned items must
have the tags attached, along with the original sales
receipt.
• Returns without a receipt: Merchandise returned after
30 days or without the original sales receipt will require
a valid photo ID. These returns will be refunded with an
H&M merchandise credit at the current selling price,
usable on future H&M store purchases.
• Final Sale: Gift card purchases and discounted final sale
merchandise is not eligible for return or exchange.

9. • This Privacy policy only concerns H&M customers and users of its online services.
• They have a policy setting out how personal data will be processed and protected.
Any changes made to this Privacy policy can be found by visiting online.
• The Swedish parent company, H & M Hennes & Mauritz AB ( “H&M”), is the
Controller of the personal data and therefore responsible for the personal data under
the Swedish Data Protection Act (1998:204) and EU Directive 95/46/EC.
• The Indian company H & M Hennes & Mauritz Retail Private Limited is the
personal data processor and processes the personal data on behalf of the parent
company.
• Personal data is stored in EU and might be disclosed to subsidiaries within the
H&M group. This means that data, in a few cases, can be processed outside the
EEA-area. In any event of transfer of personal data to a Country outside the EEA-
area, the involved H&M subsidiary will guarantee the application of the standard
contractual clauses regarding data privacy process approved by the EU.
PRIVACY POLICY

10. • H&M Customer Service does not handle inbound payments to H&M. They
will never call asking for payment information. Also never ask to give
personal information via email.
• If a customer ever receives an email asking to give specific personal data
via a link, they are asked not to reply to the email and click on the link.
They are asked to delete the email immediately.
• CONTACT
By Phone
4008-215-500
Opening hours
Monday-Sunday: 09:00-22:00
By E-mail
customerservice.cn@hm.com
CUSTOMER POLICY

11. QUALITY POLICY
H&M places special emphasis on the, quality of its products
making sure that the products meet or exceed the customers'
expectations. Some tests included by H&M:
• Washing- shrinking and colorfastness
• Pilling
• Flammability
• Chemicals
• Buttons and Details

12. PROMOTION POLICY

13. 6 Month Buying Plan
Department: Women’s Active Wear

14. Objective of Buying plan
• The six month merchandise plan is a tool that translates
profit objectives into a framework of merchandise
planning and then control.
• The main objective of creating this plan is to prepare a
month by month purchasing schedule for retail
organization.
• Formulation of objectives, establishment of policies and
implementation of procedures for a season.

15. Points to be kept in mind
1) Prepared in advance of the selling season
2) The language should be easy to understand
3) The economy is ever changing, the merchandiser budget
must be planned for a relatively short period of time six
months is the normal norm.
4) Should be flexible enough so that changes are not
impossible.

16. Components of a Buying plan
BUYING
PLAN
Planned
sales
Planned
purchases
Planned
reductions
Planned
markdowns
Shrinkage
Planned
stock

17. Planned Sales
• Planned sales are the projected sales for the period that is
being planned for.
• After careful analysis of past sales record and current
market conditions, it is estimated that a 15% increase in
sales will occur this season.
15% increase from the last years hypothetical sales figure.
Therefore,
Current year’s sale = Last year sales * 115%
E.g. - 10, 00000*115%= 1150000

18. Planned Stock (BOM)
• Planning of the merchandise stock for the season,
according to the anticipated sales.
• Method used is STOCK SALES RATIO.
Assumption= Stock to sales ratio of this and last year = 2
Calculation= Sales*STS Ratio= B.O.M Stock
E.g. = 265000*2 = 530000

19. Markdowns
• It is the difference between the original retail price and
the actual selling price.
• Markdown dollars are calculated by subtracting the
Actual Selling Price from the Original Selling Price.
• Assumption: Markdown (last year) = 11%
• Markdown (This year) =10%
• Calculation = Sales* Markdown %
• E.g. = 265000*10% = 2650

20. RETAIL PURCHASES
• Retail purchases for each month is calculated as
below:
• Calculation= (Planned sales +Planned stock
E.O.M+ Planned markdowns)-(Planned stock
B.O.M)
• E.g. =26500+466400+26500-530000=201500

21. COST PURCHASES
Cost purchases for each month is calculated as
below:
• Assumptions: Markup percentage = 55% for
planned year.
• Calculation: Retail purchases* (100-markup %)
• E.g. =201500* (100-55%) =90675

22. End of month stock (E.O.M)
• The opening inventory of the next month would
be the E.O.M stock of the previous month.
• E.g. the E.O.M of February is the B.O.M of
March

25. CONCLUSION
• With the Women’s active wear industry on the
rise and more people being fitness fanatics, the H
& M’s Women’s active wear department can plan
an increase in the following year.
• Purchases semi-annually make it difficult for the
department to determine specific orders and it
would be easier if H & M makes purchases more
often. A more in-depth inventory system would
be beneficial.

26. THANK YOU!