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H&m Brand Analysis: History then and Now

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H&M Brand Analysis: History Then And Now

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Table of Contents

  • Background
  • Brand Analysis
  • Financial Performance
  • Dependence on third party suppliers
    Trend
  • Omni Analysis
  • Competitor
  • Future Improvement

Background

H&M is know as Hennes and Mauritz founded in the late 1940’s by Erling Perrson in which established in Sweden. The word Hennes is translated as “her” reasons at the time it was know for only selling women’s clothing. In later years the brand will only not carried women clothing, but for both genders. In 1968 Perrson decided to conjoint the brand Mauritz Widforss which becomes Hennes & Mauritz which mens apparel came along this time period. This conjointment of the two brands created new doors for the brand expanding outside of Sweden. (The Premier Leader)

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It began its first international expansion in Norway and Denmark then expanded to United Kingdom. In 1973 the company decided to expand the apparel and began to sell intimate apparel. The brand was expanding their marketing strategies not only opening to new selection in apparel, but began to collaborate with their first endorsement by promoting their cosmetic collection. Their very first celebrity was ABBA member Anni-Frid Lyngstad. During the 1980’s H&M began to set a bigger expansion globally and a new change to the company personally. (The Premier Leader) Erling Persson officially handed the ownership to his son Steffan Persson who continued the brand success. During the 1990’s H&M became a brand that was generating more trends and gaining consumers. The company book from the highest paying models to advervisted campaigns such as Linda Evangelista, Naomi Campbell, and Christy Turlington. (The Premier Leader) Billboards and posters wearing casual designs from H&M giving them a high end look also being featured in countless fashion magazines. H&M has created a brand that’s fast fashion into something that became more than that giving the luxury look that everyone can afford. In 1998 the brand officially open online shopping.

The evolution and expansion of H&M entering a new millenium opening a very first H&M store outside of Europe. Their first H&M flagship store in New York City located in fifth avenue to which it compete directly with many luxury labels. H&M strategies well by not creating enemies with luxury brands, but as a way to collaborate to create a good business for both. In 2004 the brand collaborated highly designer Karl Lagerfeld. This was one big collaboration only introduce limited. All the collaboration throughout the time all limited edition where superstar could produced high-end pieces, but sold in prices that H&M usually have. (The Premier Leader) This was a game changing in the fashion industry where consumers can afford such amazing brands that consumers can owned. This strategy prove the success of H&M giving more opportunities for the brand collab with many high-end brands such as Versace, Cavalli, Stella McCartney, Alexander Wang and many more. Throughout this success in 2007 Asian market began to rise where the brand open very first few stores in Hong Kong, this continued of their expansion not only expanding , but online shopping to the international market.(The Premier Leader)

H&M brand today has proven that luxury can be fast fashion and everyone can afford it. They took initiative of launching many selection from apparel, intimates, collaborations and even home decor. The brand today is one of the top best retail in fast fashion.(The Premier Leader) Analysis H&M has over 60 countries and also has a great e-commerce being said one of the largest clothing retailer in the world.

Brand Analysis

Products: The brand has a wide range selection offering apparel, cosmetics, shoes, home decor, and accessories. (Hennes & Mauritz Brand Analysis)

Global Presence: H&M presence has a strong and diversified across the globe. Over 60 stores across 6 continents. The brand expanded recent years in new markets such as Asia and Africa.(Hennes & Mauritz Brand Analysis) Strong global presence helps to have less risk in the business. Brands H&M product portfolio sells its product many different brands such as COS, Weekday, Monki. These brands have each a target consumer, different from the H&M brand. (Hennes & Mauritz Brand Analysis)

Financial Performance

The brand has a great performance in 2015 revenue grew up to 19.4%. This increase investor confidence and provides a great flexibility for the company.

Dependence on third party suppliers

The brand is very dependent for its merchandises. H&M is very know for outsourcing products almost about 800 independent manufacturing suppliers in this case has a lower control over how the merchandise is produce. This causes a bad image to the brand and its customer experience.

Trend

H&M is fast fashion in which is very affordable clothing with a luxury look. Many of dependent suppliers like H&M are an example of independent suppliers and copy trends from luxury brands.

Pricing The brand is known for making the pricing affordable to shop, but this can affect the quality of the clothes and product that the brand sells.

Omni Analysis

Facebook: H&M has more than 14 million fans promoting merchandise, blogs and often having it to link to the company website. This also involves socializing with consumers in competitions to participate. One competition they did that was very know is winning tickets to coachella in which consumers have to create a festival style using the hashtag #HMCoachella. This created such a great way to gain and interactive new consumers.(Bhasin, H., BhasinI, H.,)

Twitter: Using this social platform H&M has more of responding to their customers questions and linking them to fashion blogs and promotions. This gives the consumer an idea to see options in style through blogs and promotions when they want to shop.(Bhasin, H., BhasinI, H.,)

Instagram: Instagram being one of the top social platform for brands to use to promote sale, new collection or collaboration. This gave H&M a wide selection of a different consumer base where it still promotes new collection, sales and collaboration. The difference it’s more interactive to the consumers base. (Bhasin, H., BhasinI, H.,)

Competitor

H&M top competitors are Gap INC., Zara, and Uniqlo. These brands have a very similarities in terms of providing such good quality apparel for both genders. Zara is one of H&M highly rivalry setting $14.8 billion in revenue also providing luxury clothing in such a good price like H&M also does. Gap Inc. is a second brand that competes with H&M setting themselves the apparel retail field. Gap Inc. has almost about 41,649 more employees than H&M. (H&M Competitors, Revenue and Employees ) Uniqlo is the third brand that competes with H&M generating $20.1 billion more revenue than H&M. The company only set almost about $25,7 billion.(H&M Competitors, Revenue and Employees ) Another competitors would be are department stores in the specialty clothing that grab sales from lower prices or better merchandise even great customer service. Even if the department stores continue to focus on apparel and trends they received sales still, but also look for the best pricing. (H&M Competitors, Revenue and Employees ,)

Recommendations Vision: The business needs to aimed socially, economically and environmentally in sustainability. In which they will need to represent both future and present consumers.(H&M takes steps)

Expansion: The brand has focus on constant on expanding across the globe. H&M has grown adding almost 400 new stores in 2016. This is a great example how strategically it can be improved “its bottom-line and top line”.(H&M takes steps)

Emerging markets: Markets are well possess and a great opportunity where H&m needs to expand the different kind of markets like to new markets Asian and Africa. This new demand is a great way to know who you are marketing well to.(H&M takes steps)

Improving: The lifestyle of the people improving across the globe and purchasing power is the lifestyle of the people. This is a great example that many people are brand conscious this gives an opportunity for brands to “capitalise”. (H&M takes steps)

Fashion trends: The industry changes as trends keep also changing. The social media has also play such a huge part. The process of changing trend has to be exact the same to the newer trends or it will become successful.

Labour Cost: The labor cost is one affective issue when it comes to production for the industry in apparel. H&M has such an increasing cost the affects the company profitability.(H&M takes steps)

Fluctuations: H&M has reported currency in Swedish Krona in which most sales are issued economies such as Europe and US currency. The main issue is the exchange rate affect the profitability of the company. (H&M takes steps)

Future Improvement

The company can create several steps to improve the company worker conditions for the workers, consumers and the merchandise of the company. It’s been said that one there priority is to ensure that factory employees are presented by trade unions so they can be ensure of right training gaining skills. (W. (n.d.). ) H&M company said “The work is at the top of our agenda and we stay true to our collaborative approach and methodical way of working, making it possible to take important steps forward,”. (W. (n.d.). )By all means this is presenting the company is focusing on the important steps to make the company to be better giving the priority that works come first. The company wants to improve facilities ensuring that employees at the factories ans in the labour market to raise wages, working conditions to be better. The company also collaborated with global framework agreement to make sure that wage issue are negotiated that employees have the rights and benefits. The company wants to improve this factor because employees represent the company. (W. (n.d.). )

Another improvement is there marketing, throughout the past years H&M have promoted well for the brand. Some mistakes is being careful how represent them such as 2017 incident with african american child wearing a monkey hoodie. The marketing to promote the season should be thoughtful and strategies wisely. (W. (n.d.). )

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