MERCHANDISING POLICIES & 6 MONTH BUYING PLAN

PRESENTED BY:
CHHAVI
KARTIKA
NEELAM
SAMMARTH
SOWMYA
TRIPARNA

 1947 Hennes open as Womens clothing store in

Vasteras, Sweden.
1964 First International store opens in Norway.
1968 Launch of kids and mens lines.
1972 Known as H&M, Hennes develops a cosmetic
line
1998 H&M joins the online market.
2013 Global online shopping.

Introduction

Men
wear

Access
ories

H&M
Kids
wear

Product Line

Women
wear

Category
Chosen
Womens
Sportswear
Womens Active
Wear

Strengths

Weaknesses

Cheap fashionable clothing

Poor quality/finish to clothing
Location of the stores
Competitive market
The number of stores they
Sourcing and operating in so
have
many of their clothes in other
countries can lead to lack of
Good marketing
quality control with clothing
High barriers to market entry
and staff
Operate on a global scale
High growth rate
Opportunities

Threats

Online shopping
Emerging markets such as
India and China

Rising labor costs

Global competitors

SWOT ANALYSIS

Guidelines to adhere to:

Benefits offered to staff

Must adhere to store

timings Business Hours: 9
am 11 pm

Shop for even less: 25%

flat discount to all staff

Must be dressed in semi

-formals, applies to both
Genders
Strict adherence to
guidelines placed in the
Ethical book of Conduct

STAFF POLICY

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

 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.

E-RETAIL POLICIES

 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.

RETURN & EXCHANGE POLICY

 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 EEAarea, the involved H&M subsidiary will guarantee the application of the standard
contractual clauses regarding data privacy process approved by the EU.

PRIVACY POLICY

 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

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

QUALITY POLICY

PROMOTION POLICY

6 Month Buying Plan

Department: Womens Active Wear

 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.

Objective of Buying plan

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.

Points to be kept in mind

Planned
sales

Planned
stock

Planned
purchases

BUYING
PLAN
Planned
reductions

Shrinkage

Planned
markdowns

Components of a Buying plan

 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 years sale = Last year sales * 115%
E.g. - 10, 00000*115%= 1150000

Planned Sales

 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

Planned Stock (BOM)

 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

Markdowns

 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

RETAIL 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

COST PURCHASES

 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

End of month stock (E.O.M)

 With the Womens active wear industry on the rise

and more people being fitness fanatics, the H &
Ms Womens 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.

CONCLUSION

THANK YOU!