h&m case study solution

Detailed Marketing Strategy Case Study on H&M – With PDF Inside

By Aditya Shastri

With increasing market competition in all industries, marketing has become the focus of attention of companies to stay relevant. Last time we wrote about a marketing case study on Ikea , the biggest retail furniture chain in the world. Following that theme, we are now going to elaborate on the marketing strategy in this case study on H&M.

H&M is the world second largest clothing and apparels retailer, right after Zara. With a massive global supply chain, the company is present in more than 74 countries and is known for its minimal yet fashionable fast clothing. The company is famous for its marketing and brand efforts and is a perfect subject for study by any marketing enthusiast, student or professional. If you are new to know about digital marketing, to get started, you can watch the Free MasterClass on Digital Marketing by our CEO and founder, Karan Shah.

As a part of the Post-Graduation Programme, IIDE’s flagship course, 2 students – Shivani Verma & Ritu Bhoite, conducted their thesis project on creating a multi-channel marketing strategy for H&M. This case study is written on the basis of their primary research and hypothetical marketing solution. 

The case study on H&M will walk you through research, and answer the solution to the real-life problems identified in the company’s marketing strategy. So let us dive right into the H&M case study by first learning more about the company.

About H&M

Found by Erling Persson in 1947, in Sweden, under the name ‘Hennez’ meaning ‘hers’ in the language – as the company was only selling women’s clothes at the time. After 10 years, the company started opening in the neighbouring country of Norway and started producing clothes for men as well. Now the company is run by his son Stefan Persson and Helena Helmersson.

Quickly after their IPO in 1974, the company started expanding across Europe and by the 1990s started opening its stores in the USA as well. Now H&M is present in 74 countries and offers online shopping to 33 countries. The company is known for its affordable yet fashionable clothes, with the highest collections dropped per year, so the customers are always buying something new.

Now that we know the company’s history and legacy, let us start with the case study.

Case Study on H&M: Market Research

As the first step to decode the marketing and positioning in the market, the student team performed multiple research techniques, including both primary and secondary research. The following is the collation of their work.

Buyer Persona

In order to start researching the market, a marketer needs to know what their audience is and behaves like. H&M being a fast-fashion brand is still considered a mid-tier luxury in markets like India. Due to this reason, H&M is more popular in metropolitan cities. 

They particularly target the youth segment from the age of 16-25. The following is a graphical representation created by the student team to encapsulate their research. 

Market Analysis

H&M shares the market with two other fashion giants in this segment, Zara and Forever21. The majority of the market is cornered by Zara and H&M, with Zara in the lead by a margin. 

The three companies position themselves quite differently, while Forever21 offers far more party wear and lesser sizes, H&M skews more towards a better range of clothing sizes and more daily wear. Zara takes the middle road between the two and offers more high fashion for its customers.

Since a large margin of the sales come from online portals, market research on their online presence was also conducted. Overall, H&M has better organic traffic than the other brands but Zara demonstrates far better reach on the internet with their targeting of focus words such as jumpsuit, camisole and bodysuit which have demand. They are also growing at a faster rate than H&M. 

Market Gap Analysis

In order to understand what are the kind of places where H&M can improve its sales by marketing, the student team conducted a market gap analysis. Their primary research was done by taking public poles and they found the following market perceptions:

• 82% of brands are not inclusive all size clothing
• 65% feel insecure due to the lack of size availability in brands
• 55% of users are not aware that H&M has all sizes

As a conclusion of their findings, our student team have rightly identified the need to market the company’s already existing all size product feature. The following is a marketing strategy solution crafted by them on their findings.

Case Study on H&M: Marketing Solution

After identifying their target market to be all size clothing for a customer range of 16-25, the student team came up with their marketing strategy which will encompass multiple channels and a marketing campaign to go with it in order to increase the awareness of H&M’s all size clothing collection. They wish to increase awareness of the brand as well as increase their lead generation with multi-channel remarketing.

Let us start digging through each element of their marketing strategy, by starting with their Marketing Campaign:

Marketing Campaign – H&M For All

The name of the hypothetical campaign is “H&M For All”, and highlights the brand’s unknown product USP. The campaign centres around body positivity and acceptance with the help of informational content generated from an extensive influencer marketing strategy. The campaign is planned to be for 1 month long to create awareness amongst the target market.

Along with their campaign, the student team has created a budget about how they will be spending in the 1-month long campaign. It details out the different channels involved and the big picture of how the resources are being distributed. If you are interested in learning the science behind media planning and how the student derived these numbers, check out our course on Media Planning to learn more.

Now let us dive into the traditional marketing strategies they will create for H&M.

Traditional Marketing

By focusing on the audiences of metropolitan cities, their traditional marketing strategy is focused on billboard advertisements and other ad spaces. They have decided to only focus on this strategy due to the increasing use of online apps and stores for fashion. Their banner ads will be limited to only places near the H&M locations.

Social Media Marketing

H&M already has a huge social media presence. In order to make sure that their presence is better utilised in increasing awareness of the products that are lagging, the student team has come up with a social media strategy that focuses on body positivity, inclusivity and informing their audiences. They have taken a social issue pertaining to the consumers in order to target their audiences.

The strategy will include platforms such as Instagram, Facebook, YouTube, Snapchat, and even includes Pinterest. They have even given a content bucket with proposed posts for each. 

You can learn more about it by downloading the H&M case study PDF here.

Influencer Marketing

As a fashion brand, influencers or brand ambassadors, are a necessary part of their marketing strategy. In order to connect to the youth and talk about social issues regarding negative female body stereotypes, the influencers have been picked from an array of backgrounds and have connections to fashion, self-image and social causes awareness creation. They have even planned to do a full song with the female rapper/social activist – Raja Kumari.

In order to target the customers that have come to the H&M website or are looking for all size women’s clothing, text and visual ads can be run using the Google Ads platform. It’s a highly effective strategy to improve conversion rates. The student team has two kinds of google search terms for advertisement targeting.

• Brand Keywords – Such as ‘H&M store near me, ‘H&M coupon’ and ‘Zara clothing’
• Non-branded Keywords – Such as ‘best jeans’ and ‘plus-size clothing’

Alongside these text ads, they will also launch a Google Display Network ad, targeting their users on Youtube and websites.

Search Engine Optimization focuses on improving the website’s quality both technically and content-wise in order to help it rank in the right places on Google SERP search. On their website health check-up, the student team found the following problems:

• Poor speed load issue
• Do not have amp pages, site map, robots txt
• H&M India should have its own google my business account
• Wrong Twitter and Facebook added
• Images without alt text
• ItemList, Product-rich snippet for e-commerce in action ss

The better optimized a website is, the better likely it is to rank and also increase conversions due to improved user experience. To learn more about the fascinating world of SEO, check out our Search Engine Optimization Course . 

They have proposed the following solutions to these issues:

• Rank for high intent keywords
• Rank for region-specific keywords
• Category Keywords
• Improve loading speed 
• Add Alt text to relevant images
• Add a creative 404 error page that redirects users to the homepage
• Styling blogs
• Add outbound links

Remarketing

Remarketing is an essential part of marketing strategies, and with the power of digital marketing, these kinds of campaigns have become much more personalised and effective. According to the marketing strategy made by the students, they have proposed a remarketing schedule as follows:

• Awareness stage Youtube video AD, whoever watches more than 30 seconds will be remarketed
• People who visit the website and social media handles of H&M will be remarketed
• People who have left items in the cart will be remarketed with the same product on social media 
• Highlighting ” Discount” ” sale” “coupon code”

You can learn about their entire strategy and targeting by downloading the H&M Case Study here.

Email and SMS Marketing

H&M already follows an email strategy, however, they do not have any SMS marketing implemented. As noted by our student team, they observed the following issues with the current strategy:

• Landing page: US H&M website
• Call to Action
• Message clipped

In order to improve their personalised reach out efforts the student team has suggested the following improvements:

• E-mail every once a week
• Catchy subjects with emojis.
• Clear Call to Action
• Drip marketing
• Promotional messaging through SMS

Using all these marketing channels the student team has proposed the aforementioned strategies as a response to their case study on H&M. Let us conclude our learning from the case study.

H&M is a global fashion behemoth and has an amazing reach and market share. They already have a tremendous amount of marketing strategies in place and are doing very well implementing digital marketing strategies. With the rising competition and increase in microbrands and websites, H&M has to improve its marketing strategy to go hand in hand with the times.

Our student team did the whole decoding of the company’s marketing strategy and identified pain points in the strategy. They followed it up with a campaign and multichannel strategy to improve the already existing brand image of H&M. They are improving the awareness and action level marketing strategies of the brand. If you are interested in growing your career in the marketing industry, you should apply for IIDE’s flagship course Post Graduation Programme in Digital Marketing .

If you wish to learn other marketing strategies and case studies, head on over to the Case Study presentations page.

Thank you for reading the blog, if you have any thoughts on the matter, please leave your comments below.

Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs...... [Read full bio]

Provide Swot Analysis Of Nivea

what is the market share of H&M after doing a case study on H&M .

I think H&M mostly focuses on women traffic as all the above images in the blog shows all the women for marketing.

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The Whole Package

A global fashion brand pairs sustainability and growth..

The fashion industry exploded over the past two decades. Garment production has doubled since 2000, and plastics use has multiplied along with it. H&M, one of the largest apparel manufacturers in the world, wanted to grow more sustainably. One of its goals: eliminate plastic from its packaging. Together we developed a new paper packaging system that’s cutting thousands of tons of plastic from H&M’s operations, helping the company and its customers meet their sustainability goals.

plastic-free packages shipped in 2022

Of plastic eliminated from h&m operations.

Packaging accounts for 26% of plastics produced globally every year.

Fashion e-commerce is estimated to grow by 10% annually through 2024, requiring even more packaging.

Fast fashion keeps getting faster. But if the industry is to meet its climate commitments, its use of plastics has to slow down.

H&M chief executive Helena Helmersson set ambitious sustainability goals when she stepped into her role. She wanted to reduce the fashion giant’s impact on the environment and enable meaningful growth. But change is tough for any company, let alone one with eight brands operating across 74 markets. Together IDEO and the H&M Group created new plastic-free packaging, rallying around a more sustainable packaging solution that’s easily customizable.

By applying a design-led approach that went far beyond hiring a sustainability consultant, the H&M Group managed to reduce its use of plastic. But it didn’t stop there. A small team called Design Studio took what it learned and grew into an established strategic capability that pioneers new ways of working in the organization, tackling complex challenges in circularity, inclusion, supply chain, and customer experience. Sustainability isn’t a passing trend for H&M. It’s moving fashion forward.

“Sustainable packaging was our first beacon project for using a design-led approach to deliver on big shifts as a company. Today we’ve built a design capability tackling challenges in key strategic areas while unleashing human-centered ways of working across our organization.”

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Case Study | Inside H&M’s $4 Billion Inventory Challenge

• Sarah Kent ,
• Hannah Crump
• Digital disruption and changing consumer behaviours are upending the traditional retail model, leaving established players battling to stave off competition from e-commerce upstarts with lower costs and more efficient business models
• H&M group is battling shrinking profits and sluggish growth that have left it with a $4 billion inventory problem
• The company's years-long transformation strategy is beginning to pay off, but this is still a work in progress. Sales are improving, but inventory remains at elevated levels

H&M group’s cheap-but-trendy offering helped it dominate the high street for much of the last twenty years. Now, it’s struggling to keep from falling out of fashion.

This case study explores H&M Hennes & Mauritz AB's long-term strategy to survive and thrive in the new retail paradigm. It's among a cohort of established players scrambling to adapt to changing consumer behaviour and the rise of e-commerce — trends that are re-making the high street.

Faced with an onslaught of competition from digitally-native players with lower costs and more efficient supply chains, the fast-fashion giant is battling sluggish growth and shrinking profits. Its inventory levels have ballooned into a $4 billion problem — a potent and costly symbol of the challenge at hand.

The company’s recognised the need for sizeable, long-term investments in order to keep pace with digitisation and meet evolving consumer demands. Its years-long transformation has focused on key pain points that are affecting retailers across the sector. To combat its digital deficit, the company has spent billions upgrading its online offering and logistics infrastructure. As retailers struggle to maintain profitability at physical locations, it’s expanded its store footprint tactically, closing challenged locations and taking steps to improve the customer experience at key sites.

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In a rapidly changing market, can a global retailer that has fallen behind the times survive? The Business of Fashion examines why H&M group is struggling, and how its transformation strategy is playing out.

Sarah Kent is Chief Sustainability Correspondent at The Business of Fashion. She is based in London and drives BoF's coverage of critical environmental and labour issues.

Hannah Crump is Associate Director of Strategy at The Business of Fashion. She is based in London and manages long-form content, including Case Studies and Reports.

• Stefan Persson
• Karl Johan Persson
• Karl-Johan Persson
• H&M Hennes & Mauritz
• London, United Kingdom
• Bof500-2013
• Fast Fashion

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H&M Foundation: Sustainable fashion innovation at scale

• Call for Change
• When Tech Meets Human Ingenuity
• A Valuable Difference
• Related Capabilities

Call for change

Fashion industry leaders are calling for radical change and exploring ways to be more sustainable.

Sustainable innovators and entrepreneurs are critical to finding new solutions, but often struggle to attract the necessary support to scale innovations. And time is short. Billions of dollars need to be funneled into sustainable fashion innovation annually to reinvent the industry.

This is where the non-profit H&M Foundation comes in. Since 2015, it has supported early stage sustainable innovation through the Global Change Award (GCA) , in collaboration with Accenture and the KTH Royal Institute of Technology. With 20,000+ entries since its inception, the GCA shows that the collective talent exists to transform the fashion industry. To take sustainable fashion to the next level, the H&M Foundation wanted to measure the multidimensional value some of these innovations could yield with support.

How could the non-profit spotlight 10 of its GCA winners and quantify their potential impact?

"It's crucial to support sustainable innovation if fashion is going to make the shift to a more sustainable industry. The Billion Dollar Collection highlights this untapped opportunity." — KARL-JOHAN PERSSON , Board member of H&M Foundation and Chairman of H&M Group

When tech meets human ingenuity

The H&M Foundation called on its long-term partner Accenture, to help show what the future could look like.

We helped the H&M Foundation develop and launch a virtual collection of five looks—the Billion Dollar Collection (BDC) . Showcased as designer garments, each of the 10 GCA-winning innovations selected come from across the globe and encompass elements from sustainable materials to traceability.

The H&M Foundation drew on Accenture's diverse skills to support the BDC launch. Mackevision (Accenture Song), created a digital avatar from scratch and brought the designer's sketches to life as 10 3D garments using digital twin and CGI technology. To demonstrate the potential impact of the 10 innovations, Accenture applied its 360-degree value approach to each startup with the 2030 UN Sustainable Development Goals in mind. We also helped create a high-end digital fashion lookbook, featuring the design, solution and potential industry value generated if the innovation is scaled up.

A valuable difference

The H&M Foundation's Billion Dollar Collection helps create a new paradigm to articulate value and innovation in the fashion industry.

The BDC highlights how companies can measure success in a more holistic way by looking at dimensions like sustainability.

The H&M Foundation now has a way to showcase the potential ground-breaking impact of the GCA innovations if they are adopted and scaled. Its sustainable innovations-backed up by thorough analysis-offer the industry an opportunity to reinvent itself to fuel future growth and bring positive change. With these advances, H&M Foundation is changing the face of the fashion industry to make sustainability and innovation default practices by design.

Sustainability in fashion

Related capabilities, retail consulting, sustainability services, accenture song.

H&M’s Low-Cost, High-Fashion Supply Chain

January 8, 2010

Case Study Abstract

The focus of this case study is the supply chain of fast-fashion giant, H&M. H&M – the world’s third-largest retailer by sales – has grown into a profitable force in the global apparel market by offering clothing that is seen as both fashionable and reasonably priced. This case discusses the supply chain management practices of H&M and how it responds quickly to changing fashion trends by renewing its lines . H&M’s logistics, inventory management process, design collaborations, sales channels, online branding and best price strategy are briefly covered.

Table of Contents

• Introduction – Fast Fashion and Supply Chain Management
• Background Note
• H&M Quick Facts
• Elements of H&M’s Innovative Supply Chain
• Double Supply Chain
• H&M’s Three Sales Channels
• Efficient Central Distribution Center
• H&M’s Best Price Strategy
• H&M’s rapid reaction supply chain – Flexible Purchasing and the ICT platform
• Branding online and the Virtual retail experience
• Design Collaborations
• ‘The shock of the new’ every day – Building a continuous consumer supply chain
• Exhibit I: H&M’s Growth (1974 – 2007)
• Exhibit II: H&M’s Global Expansion
• H&M Timeline
• H&M’s Financial Performance Summary (Revenue and Net Income)
• Exhibit VI: Comparison with major global specialty clothing retailers
• H&M: Sales Graph by country, 2007
• H&M: Store Locations, 2007
• H&M: Sales by Country, 2007
• Questions for Discussion

Case Study Keywords: Hennes and Mauritz, H&M, Supply Chain Management, SCM, Erling Persson, rapid-reaction, Madonna and Kylie Minogue, Rei Kawakubo, founder of the Comme des Garcons fashion chain, Zara, Gap, Apparel Retailing Case Study, Logistics and Distribution, IT enabled supply chain, supply chain integration, information sharing, inventory management, fast fashion, continuous consumer supply chain, best price strategy, major global specialty clothing retailers, Design Collaborations, sales channels

Case questions for discussion.

• In the past, apparel pipelines in the fashion industry have infamously been long, complex and inflexible. How did H&M improve its buying cycle and responsiveness of its supply chain?
• “In modern retailing it is the supply chains that compete rather than companies.” Support this statement using examples from H&M’s supply chain and business model.
• Which of the following do you think is the driver of fast fashion that has a distinct impact on the supply chain – the Manufacturer, the Retailer or Consumer Demand?

Case Updates/Snippets

• Reduced time to market – Photos of fashion shows are available online immediately after a show. This has enabled fast-fashion retailers like Topshop and H&M to cut the time span between catwalk and store. Designs of luxury brands can be interpreted to the general public quicker than before. Earlier, it took months for retailers to interpret designs by luxury labels for the general public. Many designers feel that this has led to shoppers desiring for frequent refreshing of stock.
• Total Stores & Expansion : As of Aug. 31 2011, H&M had 2,325 stores. H&M plans to expand in China, the U.K., U.S. and Germany. (Update: Feb 24, 2012 – H&M has 2, 500 stores in 43 countries with revenues of around $19 billion. It has approx. 94,000 employees. H&M sources 75% of its products from Asia.
• H&M Top Management : In 2009, at the age of 34, Karl-Johan Persson took over as CEO from father. His father became the Chairman of the company.

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The Key Role of Retail Stores in Fast Fashion Companies: The H&M Case Study

• First Online: 05 December 2017

Cite this chapter

• Elisa Arrigo 6  

Part of the book series: Springer Series in Fashion Business ((SSFB))

8430 Accesses

10 Citations

The chapter investigates the key role played by a system of directly operated stores in the fast fashion business model . For this purpose, a descriptive case study has been carried out on Hennes & Mauritz AB (H&M), one of the leading companies in the fast fashion sector with a wide network of retail stores across the global market. The case study has shown that the store represents the heart of H&M’s business model, since, through direct control over the retail network the company is able to develop a profound level of market knowledge , advantageous for launching onto the market, continuous and successful ranges of fashion apparel.

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Arrigo, E. (2018). The Key Role of Retail Stores in Fast Fashion Companies: The H&M Case Study. In: Chow, PS., Chiu, CH., C. Y. Yip, A., K. Y. Tang, A. (eds) Contemporary Case Studies on Fashion Production, Marketing and Operations. Springer Series in Fashion Business. Springer, Singapore. https://doi.org/10.1007/978-981-10-7007-5_8

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Sustainable fashion supply chain: lessons from h&m.

1. Introduction

2. literature review in sustainable fashion supply chain, 3. sustainable operation practices at h&m, 3.1. eco-material preparation, 3.2. sustainable manufacturing, 3.3. green distribution, 3.4. green retailing, 4. lessons of sustainability at h&m from the country perspective, 4.1. lessons of supplier selection.

4.2. Lessons of Sales per Store with Human Wellbeing

4.3. Lessons of Launching Online Stores

5. Conclusions

Acknowledgments, conflicts of interest.

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Shen, B. Sustainable Fashion Supply Chain: Lessons from H&M. Sustainability 2014 , 6 , 6236-6249. https://doi.org/10.3390/su6096236

Shen B. Sustainable Fashion Supply Chain: Lessons from H&M. Sustainability . 2014; 6(9):6236-6249. https://doi.org/10.3390/su6096236

Shen, Bin. 2014. "Sustainable Fashion Supply Chain: Lessons from H&M" Sustainability 6, no. 9: 6236-6249. https://doi.org/10.3390/su6096236

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• H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion
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Introduction to case study solution

EMBA Pro case study solution for H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion case study

At EMBA PRO , we provide corporate level professional case study solution. H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion case study is a Harvard Business School (HBR) case study written by Andrew Hoffman. The H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion (referred as “Rana Plaza” from here on) case study provides evaluation & decision scenario in field of Strategy & Execution. It also touches upon business topics such as - Value proposition, Labor, Social responsibility, Supply chain. Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Strategy & Execution field, and broaden their skill set.

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Case Description of H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion Case Study

The H&M case is set immediately after the Rana Plaza collapse in Bangladesh. The case explores questions of who is to blame and how it should be addressed. There is no guarantee that H&M garment manufacturing had not been subcontracted to one of the factories in Rana Plaza, and Helena Helmersson, head of sustainability at H&M, must meet with the CEO, Karl-Johan Persson, to discuss how the company will respond and devise a plan to face the media coverage and public scrutiny of the apparel industry that is sure to follow. This case was written under the supervision of Andrew Hoffman at the University of Michigan by graduate students Marianna Kerppola, Ryan Moody, Likangjin Zheng, and Amaryllia Liu.

Case Authors : Andrew Hoffman

Topic : strategy & execution, related areas : labor, social responsibility, supply chain, what is the case study method how can you use it to write case solution for h&m's global supply chain management sustainability: factories and fast fashion case study.

Almost all of the case studies contain well defined situations. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently.

Case Study Solution Approaches

Three Step Approach to H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion Case Study Solution

The three step case study solution approach comprises – Conclusions – MBA & EMBA professionals should state their conclusions at the very start. It helps in communicating the points directly and the direction one took. Reasons – At the second stage provide the reasons for the conclusions. Why you choose one course of action over the other. For example why the change effort failed in the case and what can be done to rectify it. Or how the marketing budget can be better spent using social media rather than traditional media. Evidences – Finally you should provide evidences to support your reasons. It has to come from the data provided within the case study rather than data from outside world. Evidences should be both compelling and consistent. In case study method there is ‘no right’ answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios.

Case Study Solution of H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion

We write H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion case study solution using Harvard Business Review case writing framework & HBR Strategy & Execution learning notes. We try to cover all the bases in the field of Strategy & Execution, Labor, Social responsibility, Supply chain and other related areas.

Objectives of using various frameworks in H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion case study solution

By using the above frameworks for H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion case study solutions, you can clearly draw conclusions on the following areas – What are the strength and weaknesses of Rana Plaza (SWOT Analysis) What are external factors that are impacting the business environment (PESTEL Analysis) Should Rana Plaza enter new market or launch new product (Opportunities & Threats from SWOT Analysis) What will be the expected profitability of the new products or services (Porter Five Forces Analysis) How it can improve the profitability in a given industry (Porter Value Chain Analysis) What are the resources needed to increase profitability (VRIO Analysis) Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis)

SWOT Analysis of H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion

SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are result of Rana Plaza internal factors, while opportunities and threats arise from developments in external environment in which Rana Plaza operates. SWOT analysis will help us in not only getting a better insight into Rana Plaza present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage.

- Strong Balance Sheet – The financial statement of Rana Plaza looks strong and will help the company going forward.

- High customer loyalty & repeat purchase among existing customers – Rana Plaza old customers are still loyal to the firm even though it has limited success with millennial. I believe that Rana Plaza can make a transition even by keeping these people on board.

- Little experience of international market – Even though it is a major player in local market, Rana Plaza has little experience in international market. According to Andrew Hoffman , Rana Plaza needs international talent to penetrate into developing markets.

- Rana Plaza business model can be easily replicated by competitors – According to Andrew Hoffman , the business model of Rana Plaza can be easily replicated by players in the industry.

Opportunities

- E-Commerce and Social Media Oriented Business Models – E-commerce business model can help Rana Plaza to tie up with local suppliers and logistics provider in international market. Social media growth can help Rana Plaza to reduce the cost of entering new market and reaching to customers at a significantly lower marketing budget.

- Lucrative Opportunities in International Markets – Globalization has led to opportunities in the international market. Rana Plaza is in prime position to tap on those opportunities and grow the market share.

- Customers are moving toward mobile first environment which can hamper the growth as Rana Plaza still hasn’t got a comprehensive mobile strategy.

- Home market marketing technique won’t work in new markets such as India and China where scale is prized over profitability.

Once all the factors mentioned in the H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion case study are organized based on SWOT analysis, just remove the non essential factors. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case.

What is PESTEL Analysis

PESTEL /PEST / STEP Analysis of H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion Case Study

PESTEL stands for – Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Rana Plaza operates in. Andrew Hoffman provides extensive information about PESTEL factors in H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion case study.

Political Factors

- Political consensus among various parties regarding taxation rate and investment policies. Over the years the country has progressively worked to lower the entry of barrier and streamline the tax structure.

- Little dangers of armed conflict – Based on the research done by international foreign policy institutions, it is safe to conclude that there is very little probability of country entering into an armed conflict with another state.

Economic Factors

- According to Andrew Hoffman . Rana Plaza should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets.

- Inflation rate is one of the key criteria to consider for Rana Plaza before entering into a new market.

Social Factors

- Leisure activities, social attitudes & power structures in society - are needed to be analyzed by Rana Plaza before launching any new products as they will impact the demand of the products.

- Demographic shifts in the economy are also a good social indicator for Rana Plaza to predict not only overall trend in market but also demand for Rana Plaza product among its core customer segments.

Technological Factors

- 5G has potential to transform the business environment especially in terms of marketing and promotion for Rana Plaza.

- Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. Rana Plaza needs to adjust its marketing strategy accordingly.

Environmental Factors

- Environmental regulations can impact the cost structure of Rana Plaza. It can further impact the cost of doing business in certain markets.

- Consumer activism is significantly impacting Rana Plaza branding, marketing and corporate social responsibility (CSR) initiatives.

Legal Factors

- Intellectual property rights are one area where Rana Plaza can face legal threats in some of the markets it is operating in.

- Health and safety norms in number of markets that Rana Plaza operates in are lax thus impact the competition playing field.

What are Porter Five Forces

Porter Five Forces Analysis of H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion

Competition among existing players, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, and threat of substitutes.

What is VRIO Analysis

VRIO Analysis of H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion

VRIO stands for – Value of the resource that Rana Plaza possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Rana Plaza. VRIO and VRIN analysis can help the firm.

What is Porter Value Chain

Porter Value Chain Analysis of H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion

As the name suggests Value Chain framework is developed by Michael Porter in 1980’s and it is primarily used for analyzing Rana Plaza relative cost and value structure. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Rana Plaza. This will help in answering – the related costs and various sources of competitive advantages of Rana Plaza in the markets it operates in. The process can also be done to competitors to understand their competitive advantages and competitive strategies. According to Michael Porter – Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks.

What is BCG Growth Share Matrix

BCG Growth Share Matrix of H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion

BCG Growth Share Matrix is very valuable tool to analyze Rana Plaza strategic positioning in various sectors that it operates in and strategic options that are available to it. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Rana Plaza can be market leader in the industry without being a dominant player or segment leader in any of the segment. BCG analysis should comprise not only growth share of industry & Rana Plaza business unit but also Rana Plaza - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. Two key considerations while using BCG Growth Share Matrix for H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion case study solution - How to calculate Weighted Average Market Share using BCG Growth Share Matrix Relative Weighted Average Market Share Vs Largest Competitor

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Andrew Hoffman (2018) , "H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion Harvard Business Review Case Study. Published by HBR Publications.

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H&m case shows how greenwashing breaks brand promise.

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A recent exposé on fast-fashion retailer H&M alleges that the company’s environmental promise is undermined by greenwashing.

H&M was using a scorecard system to inform customers about the environmental soundness of each product, but a report by Quartz claims that more than half of the scorecards portrayed products as being better for the environment than they actually were. The report also found some instances in which H&M’s scorecards allegedly gave information about the sustainability of a product that was completely opposite from the truth.

H&M has removed the scorecards in the wake of Quartz’ s report. The scorecards were created based on the Higg Material Sustainability Index (MSI) by the Sustainable Apparel Coalition (SAC). The trade group has paused the use of the consumer-facing transparency scorecards in response to a complaint by the Norwegian Consumer Authority and is reassessing their methodology. (It has not paused the full use of the Higg MSI.)

A watchdog group found that the scorecards use only averages of the environmental impact of types of textile, rather than giving the full environmental impact of the manufacture and sale of a particular finished piece of clothing, Just Style reported.

H&M’s transgressions may go beyond that, though, with some of the product information shown on Quartz mixing up data — touting products that used 30 percent more water as using 30 percent less water, contradicting the SAC version of the scorecard.

For many of the experts on the RetailWire BrainTrust in an online discussion last week , the issue at H&M appeared to be part of a longstanding, alarming trend.

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“Retailers have been greenwashing for years,” wrote Paula Rosenblum , co-founder of RSR Research. “At least a decade, maybe more. They often mask cost-savings initiatives with ‘green ones.’ The answer is simple. Get real.”

PALM SPRINGS, CALIFORNIA: FEBRUARY 28, 2019: An H&M store in Palm Springs, California. (Photo by ... [+] Robert Alexander/Getty Images)

And the BrainTrust did not see retailers who fudge the numbers on environmental matters getting off easy.

“While the financial calculation of merely greenwashing away environmental issues may seem acceptable, this is a real threat to the long term success of companies like H&M who target a younger consumer,” wrote Mark Ryski , CEO of HeadCount Corporation. “I believe that H&M has already sustained brand damage as a result of their past greenwashing activities.”

“There is nothing worse for a brand than breaking the brand promise,” wrote Lucille DeHart , principal at MKT Marketing Services/Columbus Consulting. “Claiming to be ‘green’ is not enough today, consumers are savvy and will demand transparency.”

The fast-fashion industry has begun to make changes to its model in response to a perceived emerging customer focus on environmental and sustainability concerns. BrainTrust members had some advice on how best to make that happen, and avoid charges of greenwashing and the damage that comes with it.

“As retailers race to adhere to ESG practices, they will encounter not only issues with measurement accuracy, but with profit compromise,” wrote Ms. DeHart. “The best first step for every manufacturer/retailer is to establish a more sophisticated end to end supply chain. Having a strong planning, merchandising and allocation system will better ensure that the right amount of products get made and go to the right places to the right consumers. Produce less waste upfront.”

“Firms should treat sustainability reporting the same as they do their financial reporting,” wrote David Spear , senior partner, industry consulting, retail, CPG and hospitality at Teradata TDC . “These data ought to be of high integrity and be able to pass an audit by any third-party accounting firm. Lately there are more firms that are starting to integrate their ESG reporting into their annual financial reports. I expect to see much more of this in the near term. H&M would be well advised to get their house in order or face consumer backlash at the register and on social media.”

“The industry cannot rely on trade associations as the arbiters of sustainability or eco-impact scoring,” wrote Nikki Baird , vice president of strategy at Aptos. “Huge conflict of interest, in my opinion. If brands want to avoid more of this kind of investigation in the future, they need to engage directly with organizations exclusively focused on reducing environmental impact and increasing the sustainability and reuse of products.”

Developments elsewhere in the fast-fashion world have called into question the extent to which customers truly care about the environmental posture of the retailers they patronize. Most notable is the emergence of Chinese fast fashion app Shein as the most searched for apparel app, and most downloaded app, in the U.S. The $800 billion company has been thriving despite drawing the ire of environmentalists and even competitors like ThredUP .

But Shein’s popularity with customers was a moot point for BrainTrust member Ken Morris , managing partner at Cambridge Retail Advisors.

“Shoppers have every right to lie to themselves; fast-fashion retailers shouldn’t have the right to lie to everyone else,” wrote Mr. Morris. “When corporations lie, they will eventually lose respect, loyalty and business.”

And one BrainTrust member pointed out that, when it comes to demonstrating environmental commitment, the proof is in the pudding — not the press release.

“Saying you’re ‘green’ is a little like saying you’re a ‘cool’ brand,” wrote Lee Peterson , EVP of thought leadership, marketing at WD Partners. “Don’t say it, just do it. We’ll be the judges of those two attributes, thank you.”

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H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion is a Harvard Business (HBR) Case Study on Strategy & Execution , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.

Strategy & Execution Case Study | Authors :: Andrew Hoffman

Case study description.

The H&M case is set immediately after the Rana Plaza collapse in Bangladesh. The case explores questions of who is to blame and how it should be addressed. There is no guarantee that H&M garment manufacturing had not been subcontracted to one of the factories in Rana Plaza, and Helena Helmersson, head of sustainability at H&M, must meet with the CEO, Karl-Johan Persson, to discuss how the company will respond and devise a plan to face the media coverage and public scrutiny of the apparel industry that is sure to follow. This case was written under the supervision of Andrew Hoffman at the University of Michigan by graduate students Marianna Kerppola, Ryan Moody, Likangjin Zheng, and Amaryllia Liu.

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Step 2 - Reading the H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

• Marking out the protagonist and key players in the case study from the very start.
• Drawing a motivation chart of the key players and their priorities from the case study description.
• Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
• Evaluate each detail in the case study in light of the HBR case study analysis core ideas.

Step 3 - H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion Case Study Analysis

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• Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
• HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
• Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

• Zero down on the central problem and two to five related problems in the case study.
• Do the SWOT analysis of the H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
• SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion
• SWOT analysis will also provide a priority list of problem to be solved.
• You can also do a weighted SWOT analysis of H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion

Another way of understanding the external environment of the firm in H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

• Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
• Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
• Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

• Detailed understanding of the case,
• Clarity of HBR case study fundamentals,
• Analyzed case details based on those fundamentals and
• Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine H&M's Global Supply Chain Management Sustainability: Factories and Fast Fashion case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

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In this case study, you will discover how H&M resolved communication challenges, managed to ramp up employee engagement and develop its employee training program.

Table of contents

Introduction

H&M is one of the leading global fashion brands. In the Netherlands, they have around 3000 employees spread out over their numerous stores, distribution centers, and their offices.

We interviewed Natascha Poncia-Kilsdonk (Recruitment & Development Manager), Britt Kleinepier (Internal Communication Coordinator), and Youssef El Kandoussi (Store Manager) to learn more about how Oneteam helps H&M to make their employees successful.

“Oneteam helps us to motivate, inspire, and develop our colleagues, which clearly contributes to the success of our business.”

Summary of results

• An adoption rate of 96% ;
• 86% of weekly active users;
• Bridged the communication gap between HQ and the shop floor;
• Improved employee engagement ;
• Structured communication flows ;
• A personalized and scalable digital learning environment;
• The possibility of gathering feedback from the shop floor .

The challenge

What Employee Experience challenges were you facing before using Oneteam?

Natascha : We were facing a lot of challenges. The main challenge we had was that we shared too much information in too many ways. Think of email, newsletters, intranet, a Facebook group, and internal phone calls. It was quite a challenge to combine all this information and make sure that all employees received the right information at the right time.

Youssef : As a store manager, I received a lot of information from the company to share with my team. Having a large team, it was a big challenge to make sure the right information was shared with the right people.

How was this affecting your business?

Natascha : I can’t really tell how it affected us in numbers, but our colleagues gave us feedback that the communication overload made them confused and that it was hard to give everyone the right information. This obviously affected operational efficiency.

"Oneteam really helps us to build a bridge between our desk and non-desk employees"

The solution

Why did you choose Oneteam?

Natascha : In order to overcome the challenges, we decided that we wanted to create an inspiring, relevant, and easy-to-use communication platform. The platform had to facilitate 2-way communication for all H&M colleagues in the entire country, both for desk and non-desk workers.

Oneteam offered us the best solution for optimizing our communication flows. Furthermore, we find it very important that people working at H&M can develop themselves professionally, and the built-in onboarding and e-learning modules perfectly fit this need.

How did you experience the implementation process with Oneteam?

Britt : We launched our Oneteam app last year in March. This was the week we had to go into our first lockdown due to the pandemic (COVID-19). All our stores needed to close, and it was more important than ever to stay in touch with each other and to reach all our colleagues with relevant information. At that exact moment, we launched our Oneteam app, which coincidentally we already planned for that week. This created an immediate urgency to use Oneteam, which helped us with the smooth implementation.

Youssef : Oneteam is very easy to use. Whenever we have a new colleague in the store, it takes us just about 5 minutes to teach them how the app works.

Who uses Oneteam in your organization?

Britt : Everyone within the H&M Brand for the Netherlands uses the platform. This includes employees working in our distribution centers, stores, as well as in our offices. Currently, we have around 3000 employees working with Oneteam.

The results

How has Oneteam helped you with your communication challenges?

Britt : Oneteam is the most important communication channel we have. Via Oneteam it is super easy to ask questions and it really helps us to build a bridge between our desk and non-desk employees. It gathers all need-to-know and nice-to-know information in one easy-to-use platform.

Have you seen an increase in Employee Engagement?

Britt : What we see is that the engagement levels are super high. Especially during the several lockdowns (due to COVID-19) we had last year, we saw huge engagement peaks. Stores were closed, so the majority of all H&M colleagues were at home and really missed working together. The app helped them to stay in touch with each other, do funny challenges and really keep their strong bond alive.

How does Oneteam help you train your frontline workforce?

Natascha : With the onboarding module in Oneteam we are able to give new employees a motivating, inspiring, and informative start to their work career at H&M. It really offers them a warm welcome! During the onboarding, we explain who we are, introduce the team, and share all they need to know to get started during the first weeks.

Furthermore, we also create eLearning courses to train the team about topics such as security, leadership, and conversation techniques. Some e-learning courses are mandatory, and some can be accessed whenever someone wants to learn more on specific topics. We recently asked our managers how they find the eLearning courses, and they’re really positive about the easy way of learning facilitated in the platform.

What other results have you seen so far?

Britt : We see an adoption rate of 96% and we have 86% of weekly active users on Oneteam. Obviously, we are very satisfied with these stats.

Youssef : There are a lot of benefits to using Oneteam. But the most important one for me is that it is now possible to filter the information shared by the company and only share the relevant information with my team.

How does Oneteam contribute to the overall objectives of your organization?

Natascha : Oneteam helps us to motivate, inspire, and develop our colleagues, which obviously contributes to the success of our business.

What are your following plans for Employee Experience?

Britt : Right now we’ve been working with Oneteam for one year and we’re really happy with it. The platform also keeps on developing, and with the recently launched survey feature we are able to gather feedback from all our employees instantly.

We can now run employee satisfaction surveys and easily listen to any wishes they have regarding internal communication.

"With the onboarding module in Oneteam, we are able to give new employees a motivating, inspiring, and informative start to their work career at H&M."

Try Oneteam and achieve similar results

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Plan a live demo and learn how Oneteam can help you make your employees successful and engaged. During the demo, we will guide you through our all-in-one employee app and we’ll be happy to answer all your questions.

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H&M Fast Fashion Case Study – The Secrets To Success

Most times, we hate to admit it, but you can rarely find fashion and affordability together. Somehow H&M has deciphered the riddle of making it work and provides customers with runway trends at affordable prices. H&M fast fashion brand is unique for its creative marketing and fast production. With many unique marketing strategies, it is one of the leading fashion brands globally. The question then becomes ‘how did H&M fast fashion brand create their business today? How did this fashion brand become so recognizable all around the world? If you’re wondering about the secrets to this brand’s success, you’re not alone. Walk with us as we explore H&M fast fashion case study and their secrets to success.

How H&M Began

After World War II, Erling Persson decided to go on a road trip across the United States. While he was there, he noted a growing trend in the women’s fashionwear category. As a businessman, he noted this opportunity and immediately started Hennes once he returned to Sweden in1947. The idea behind the fashion brand was to make designer clothing accessible to women of all classes. The fast fashion industry was just growing then, and Hennes began expanding throughout the country. In the 1960s, Hennes also noted an opportunity in the menswear market. 

To gain entry into this market, Hennes acquired a hunting apparel brand called Mauritz Widforss. Due to this acquisition, a new menswear collection was born, and the brand’s name became  Hennes & Mauritz . Unfortunately, the name was too long, which led to its shortening as H&M. H&M has grown into the famous fashion brand in the world today. In 2019, the company had over 180,000 employees and $25 billion in sales. It also had a collection of 4500 stores scattered around the globe. The brand’s net worth stands at $12.38 billion, and with Erling’s son at the helm of affairs in H&M, it became one of the 100 wealthiest brands globally.

H&M Fast Fashion Case Study – The Brand’s Business Model

Fast fashion.

H&M fast fashion strategy is one of the reasons they’re so successful. Although fast fashion is quite popular today, with many companies adopting it, it was utterly foreign decades ago. There was a time people had to save up for months to buy a fashion piece only on special occasions. But, of course, this was before top fashion brands made runway pieces available at an affordable price. This action opened a new clothing line and made it possible for people of all classes to afford luxury designer outfits.

More and more consumers began to turn towards Fast fashion. Luckily, H&M strategically placed itself to capitalize on this growth, and it catered to the middle class. The brand’s business concept is simple and quite straightforward. The brand promises to provide fashion and quality at the best price and continues to do this. They provide clothing pieces for women, men, and children, and the latest fashion trend informs all designs. So whatever you need, from a basic piece to a prom outfit, the H&M fast fashion brand provides it at an affordable rate.

The fast-fashion strategy also ensures daily shipments of new outfits to the company’s stores in over 60 different markets. This daily collection of new merchandise is one of the reasons customers keep coming back.

Brand Collaboration

Another top-secret to H&M’s success is their collaboration. The brand’s marketing strategy is as a luxury fashion alternative. To sell this, the brand has a yearly collection with a luxury designer house. This marketing strategy is one top feature differentiating H&M fast fashion brands from similar brands like Zara. Since H&M kicked off collaborations in 2004, it hasn’t stopped. Some of the top collaborations of this brand are Versace, Karl Lagerfeld, and Balmain. To create hype for their new collaboration campaigns. They make products scarce and use their social media presence. H&M understands that when high-end fashion meets high-street prices, fashion enthusiasts tend to go crazy.

This brand also had a collaboration with Alexander Wang back in 2014. However, many would agree that their most successful collaboration remains that with Balmain. They were able the ride the waves using celebrities like the Kardashian-Jenner clan. They could keep all eyes on the campaign till the pieces came, and it was a big hit in the fashion world.

Environmental Focus

To generate hype for the campaign of this new collection, H&M used influencers with large followings. These influencers wrote about the collection on fashion blogs and lifestyle sites. In addition, the campaign focused on teens and young adults. These influencers were crucial in generating hype for H&M’s campaigns.

Short Product Life Cycle

Unlike most fashion brands, H&M’s fast-fashion brand aims at creating a short product life cycle for their outfits. Most would consider it a risky strategy, but H&M executes it so well that it gives them an edge over competitors. This marketing strategy can do this in two critical areas, which we will be exploring below.

Reducing Discounted Products

A feature of H&M is that the brand doesn’t have discounts. They’re constantly trying to avoid this as they did with collaborations. That’s where they utilize the short product life cycle strategy. It helps to create a sustainable business model for the brand. Most products are only on display for a couple of weeks, which causes customers to purchase them quickly. In addition, customers do not hold back on potential discounts because they know it’s less likely there’ll be one. Therefore, their customers do not want to miss out and purchase products as soon as they’re in the market.

Increases Customer Traffic

Another way a short product life cycle helps the H&M fast fashion brand is by increasing customer traffic. Typically, a customer checks a fashion store once every season to see if there are new designs. That’s not usually the case with fast fashion and H&M’s short product life cycle. Customers are continually popping into the store so that they don’t miss out on new designs. This strategy helps the brand generate more customer traffic than the average estimation. In return, this traffic also increases the brand’s odds of making sales.

Strategic Store Locations

Like other fashion retailers, the H&M fast fashion brand places its stores in busy shopping districts. The aim is to get as many views as possible. Uniquely, the store placement is a form of advertising but one without a limited lifespan. Unlike other advertising routes with limited lifespans, this form lasts a lifetime. H&M has stores strategically placed in prized locations globally. Places like Fifth Avenue in New York City, Ginza in Tokyo, and even Bond Street in London features an H&M store. Additionally, this company also places stores next to high-end brands like Dior, Channel, and others. The idea behind this is to elevate the image of the brand.

Inclusive and Targeted Advertising

This brand also uses plus-size models, amputees, and other diverse individuals. People continually praise the brand because they showcase a diverse group of people who follow their own fashion rules. H&M aims to show the customers that they can follow set fashion rules or make their own rules. Alternatively, you could choose to follow no rules at all. Research is vital with the H&M fast fashion brand. The brand puts in effort into knowing their local audience. They research local cultural taboos and then ensure that they avoid them in their local campaigns.

H&M Work Culture

Closing thoughts.

Since its creation, H&M has become one of the largest fashion retailers in the world. Almost everyone is familiar with their iconic signboards. You can find them in major shopping malls worldwide with over 4000 stores to boast of. However, most people are usually curious how the H&M fast fashion brand became the go-to place for a shopping fix. This brand also provides unique designs at an affordable price while ensuring everyone has access to sustainable clothing. While the brand’s continued success continues to be a surprise to most people, this article explains the secrets to the brand’s success. Although the company is known for its fast-fashion strategy that makes it one of the leading fast-fashion brands, this article explains other strategies that made H&M a huge success in recent years.

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