H & M Marketing Strategy – Marketing Strategy of H & M: The Swedish brand was founded in 1947 by Erling Persson. It is headquartered in Stockholm. Hennes & Mauritz AB, also known as H & M, is involved in the sale and repair of home textiles, footwear, and clothing.
It offers a variety of products across categories like cosmetics, sportswear, and other apparel to men, women, children, and babies. H&M Home, COS, Weekday, and Cheap Monday are all brands of the H & M group.
H & M At A Glance – Marketing Strategy of H & M
Company : Hennes & Mauritz Retail Pvt. Ltd
CEO: Helena Helmersson
Founder: Erling Persson
Year founded: October 4th 1947
Headquarters: Stockholm, Sweden
Annual Revenue: US$24.8 Billion
Profit | Net income: $1.5 billion
Number of employees : 177,000
Products & Services: Clothing | Accessories | Footwear | Cosmetics | Underwear | Sportswear | Home Textiles | Apparels
H & M Competitors
H & M Fun Facts: While most retailers have a timeframe of approximately six to six weeks to create, design and launch new products from designers, H&M only takes two weeks from the time of design until release.
Marketing Strategy of H & M
H & M’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of H & M? Let us discuss.
Segmentation, Targeting, Positioning – H & M Marketing Strategy
The fashionable clothing and accessories sector employs a mix of demographic, psychographic, and geographic segmentation variables, such as income, gender, age, gender, race and ethnicity, personality attributes, and brand loyalty.
As it operates with multiple sub-brands in the market, the brand employs differentiating targeting strategy and offers a variety of offerings.
H & M’s visionary outlook has allowed it to position itself as a leader in the trend-setting industry, offering quality and style at an affordable price.
H & M Mission Statement
H & M Vision Statement
“To lead the change towards a circular, fair and equal fashion industry”
H & M Tagline
“Fashion & Quality at Best Price”
Competitive Advantage – Marketing Strategy of H & M
Limited Markets: The company’s limited presence in 65 markets around the world is helping it to be more operational and protects its interests from cross-border exposures and sovereign risk.
The physical store model: Customers prefer to shop in stores for clothing and accessories, and this has led to a rise in sales in emerging markets/developing countries like India. Its sales increased by? 291 cr during the period from December 2016 to August 2017.
BCG Matrix – H & M Marketing Strategy
The company is represented by the brands H & M, & Other Stories, COS and Weekday, Cheap Monday, Monkey, and Weekday.
It is not widely available and has a limited presence on the market. Therefore, all brands belonging to the H & M Group are question marks in the BCG matrix.
Distribution Strategy – Marketing Strategy of H & M
The brand is represented in all major economies by more than 16000 employees worldwide.
H & M has expanded its reach in different countries through a strong digital presence, 4350+ stores in over 65 markets, and e-commerce in 35.
Brand equity – H & M Marketing Strategy
With its many product lines, the brand is in direct competition with the industry’s well-known Retail brands. This creates high visibility on the market.
H & M was ranked 36 th on the Forbes list of the World’s Most Powerful Brands. The market capitalization value method has valued the Apparel/ footwear Retail Brand at $ 39.9 Billion, generating revenue of $ 22,67 billion.
H&M was ranked 20 th by Corporate Knights’ annual index on the Global 100 Most Sustainable Companies in the World, as opposed to 75 th 2016.
Competitive Analysis – H & M Marketing Strategy
The company’s business model is largely based on physical stores, where footfall is declining quarter-on-quarter. However, its competitors such as Inditex (owner of Zara and Chanel), Dior, and many other brands, can capitalize on this same trend. This is due to an efficient supply chain that allows companies to adapt to changing demand patterns.
The unorganized sector of the developing world is threatening the apparel and clothing fashion industries.
Market Analysis – Marketing Strategy of H & M
The company is in the fashion industry, which has a short product lifecycle. This means that there is always the possibility of inventory being lost due to new and changing fashion trends.
The company is only present in a limited number of countries but is expanding rapidly. In 2017, the company plans to open 400 branches and is planning for strengthening its online marketplace channel.
Customer Analysis – H & M Marketing Strategy
H & M offers a wide range of products that cater to a large number of customers, including children, men & ladies.
H & M customers are mainly from the upper-middle-income group and upper-income groups and range in age between 15-and 40. H & M offers a wide range of styles and options that allow customers to express their individuality.
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