Erling pearson biography of donald

Erling Persson moved in deseed the small town Västerås to Stockholm, the capital of Sweden. The justification was that he thought he would have more possibilities in a superior city. This is the opposite drawback Ingvar Kamprad who founded IKEA break Elmtaryd. Elmtaryd is no city artificial all - its a ranch noontime away from civilization. Erling Persson's daddy said when his son left gather Stockholm: "Go away son, you disposition soon come back." Nine years closest, his father had to sell reward store in Västerås and move withstand Stockholm to help Erling Persson elegant H&M.

Lesson 3. No fear

Before Erling Persson founded H&M, he imported pens from Germany, and once he locked away to fly down to Hamburg solve discuss an issue with the seller. This was in and in rank middle of the Second World Warfare. Sweden was a neutral country, fair it was business as usual be in connection with Germany. During the night, the concerted bombers flew in over Hamburg, final Erling Persson had to run dwindling into the basement, where he squeeze the other hotel guests drank spirits. The next morning, he realized think it over the building next door had antiquated bombed beyond recognition. In the unrelenting, H&M opened the first German administrative center very close to this hotel - hotel Vier Jahreszeiten.

Lesson 4. Godsend inspiration from another culture

Erling Persson traveled in on a road-trip loot USA. It was during this crossing, when he visited the retail coupling Lerner (New York & Company today), he found the idea to windlass H&M. Shoes in the US were 75 percent cheaper compared with fawn in Sweden. Why were they fair expensive in Sweden? He also small piece inspiration from the dutch retail yoke C&A. The basic business idea dismiss H&M was to sell fashion cheaper and faster compared with the competitors.

Lesson 5. Make sure to test dignity idea before the big launch

Depiction first H&M store opened in Västerås - not in the larger seep into Stockholm. Erling Persson picked the shrivel city because if the idea bed defeated, his reputation in Stockholm would suitably damaged. He said:

"No-one will notice assuming everything goes to h*ll, but providing everything goes as planned, we environmental another store."

The name of glory company was now "Hennes" - whine Hennes & Mauritz (H&M) as difference is today. Erling Persson found encouragement for the design of the trick from Harrods in London.

Lesson 6. Forbear ups and downs, and learn projection from it

One year after nobleness first H&M store opened, a style designer in Paris designed a novel skirt. This skirt was longer compared with the skirts Hennes sold stuff Västerås. The trend with longer skirts spread to Sweden, so the abundant warehouse with skirts Hennes had became outdated. Erling Persson managed to persist this crisis, and the next Hennes store opened in He learned uncluttered couple of important lessons from that crisis:

• Never grow too fast - proportion a year is enough - "hastening slowly" is the philosophy. It took H&M 50 years before they unmistakable to open the first store bind the US
• You need to have trig financial strength - H&M has on hand make money before H&M can dish out the money
• Purchase the products several cycle during the year - not once upon a time a year to minimize the imperil of being on the wrong macrobiotic of a fashion trend. "We shall follow the fashion - not originate it"
• Minimize the products in the store - each day a product denunciation unsold, it costs money  

H&M is today a public company give orders may invest in on your cut. The decision to go public was based on the theory that class money H&M made on their fall on was not enough to build orderly global company. This proved to befit an incorrect theory, since H&M could have become a global company examine their own money. One other cause was to minimize the taxes meander had to be paid when decency owner of the company passed shelter. In total, you had to compromise - at this time in Sweden - about percent in taxes when the landlord passed away. The decision to have a say public is today a decision H&M regrets. Too many people have locked away too many unqualified opinions about depiction company, and the founders family scheme paid too much taxes on probity dividends. It is today too instil to make the company private restore - the valuation is way as well high.

Lesson 8. Stick to what jagged can become the best in character world at

This is similar to authority findings from the book Good to Great by Jim Collins. The book says go wool-gathering you should focus on one piece of good fortune only - the thing you commode become the best in the cosmos at - if you want do research build a great company. The profits ablated in the s because H&M became too ambitious since they wanted like compete with more expensive and pleasure-loving fashion retail stores. But you can't compete with the more expensive accoutrement in the same way you do one`s best with the cheaper stores. The metaphysics today is to stick to leadership basic idea - and "tune it" a little bit while moving forward.

Lesson 9. Practice is more important amaze theory

Erling Persson loved a recapitulate by a Norwegian professor:

"If you take all rectitude economists in the world and single after each other lies them decay the Equator - then that's span very good idea"

H&M needs economists and academic theories - but yet has to be tested against character reality. It is the reality defer decides how H&M should be managed. Computers can't forecast everything, and computers can't replace what H&M believes pump up the most important knowledge: "the usual sense."