H&M is a global low-end clothing retail chain. By 31 May 2011, H&M had 2,297 stores in 38 different markets. H&M is constantly expanding and has a target of increasing the number of shops by 10-15% p.a. globally. Key growth markets include China, U.K. and USA. Expansion is self-financed whilst still offering a dividend yield of 4% (2010). It has grown revenues by ~14% p.a. over the last 10 years. Production, from 700 independent suppliers, takes place primarily in Asia and Europe. The largest operational risk is executing on the ‘wrong’ fashion trend resulting in heavily discounted sales of inventory. H&M has generated additional sales by inviting famous guest designers to create limited collections. The business model is defensive by nature. In difficult economic conditions customers ‘trade down’ allowing H&M to get hold of more and better store locations. Thereby, increasing price competitiveness and laying the foundation for accelerated future growth. In 2011, HM's gross margin may experience pressure due to higher cotton and oil prices and appreciation of the Swedish Krona.