Shantel WolfeCOMM 2331

SWOT Analysis: H&M Brand

Strengths

One of the major strengths that Hennes and Mauritz (otherwise known as H&M) holds is

a recent one. That is it’s expansion of its online shopping option to nine countries, it’s ninth

country being the United States. With it’s popularity and trendiness in America, it’s surprising

that there wasn’t an online option for Americans sooner than August 1st, 2013.The online store

offers sizes up to size 24. They also offer online exclusives more than what is offered in a store.

Since H&M is a European-based brand, expanding globally is a major asset to the brand.

Furthermore, the online store offers low shipping times even when shipping overseas!

Another strength is celebrity endorsement. At their big release party, they had Lady Gaga

present at the party to perform and entertain. Other celebrities H&M flaunted on their ad

campaigns are Lana Del Ray and David Beckham. With their fashion savvy style, they draw the

celebrities’ interest as well as the general publics. This is because they offer this trendy style for

less money.

The brand holds runway shows in which they offer upcoming student designers an

opportunity to design a new line for H&M. Not only that, but they record the runway show

professionally and post it on their prominent YouTube channel that boasts almost 60,000

subscribers. But that use of networking pales in comparison to their popular Twitter account with

over 3 million followers. The brand has also utilized even the lesser-used social networks such as

LinkedIn, Google Plus, and Pinterest. Yes, maybe a lot of brands have utilized these same social

networks. However, the difference between these brands and H&M is that H&M does it better.

They offer interesting links and media to connect with their audience on a personal level. This is

a huge thing to do for a brand that is so large.

Because I do think H&M is a very strong company from a consumer standpoint and also

from researching a lot about their company, I do not believe that they have a lot of weakness nor

many opportunities that they have yet to grasp.

Weaknesses

One of their weaknesses is an observation that I have made from a consumer standpoint. I

have followed the H&M Instagram account for years and have kept a close eye on what they

post. Because they make their products so widely available to people in the United States,

Americans expect the same thing out of H&M: quality-made and stylish products at an

affordable price. However, their first and only goal was to provide a sense of fashion/high-

fashion. Recently, they received very negative comments about their latest runway show. The

comments were mostly about how the clothes were “ugly” and how “no regular person would

wear that.” Trying to balance a sense of style while still incorporating elements that people can

use for everyday wear is a big weakness for this brand.

Their shipping time is very low which must mean they have a high amount of clothing in

stock. If some of this clothing doesn’t sell during its premiere “season,” then this would lead

H&M to reduce their prices even more. In my experience, if I see a popular piece of clothing at

H&M but see it’s a bit more expensive than what I would usually pay for that clothing, I wait till

it goes on sale. This may be hurtful to the brand because they are losing money by reducing

prices in order to sell their stock.

Opportunities

H&M seems to fully understand the opportunity that sustainable materials can provide for

a brand. In an article published in 2009, H&M was placed fourth among the top highest

purchasers of organic cotton (Wheeland, Matthew). As they expand, they have an opportunity to

become an even more responsible brand in terms of animal welfare and chemicals used in

textiles. They have the opportunity to completely change their brand to a strictly health-

conscious one in the mind of consumers.

Another opportunity that H&M has is to work with nonprofits and foundations that

support causes the brand stands for. This could bring in many new buyers that support that cause

too. Currently H&M is working with Civil Rights Defenders and selling a bracelet in their honor

within their stores. All proceeds of that bracelet go towards that organization. This builds their

credibility as a brand and H&M can definitely expand their work with charities and

organizations.

Threats

One of the biggest threats to H&M is their competition. H&M’s group that they target would be

stylish young professionals or fashion savvy teenagers. Currently, there are a lot of other

affordable yet stylish stores who share that same target group with H&M. These would be stores

such as Gap or Forever21.

Another threat is the misuse of well-made clothing. Customers have come to expect the

same quality of clothes they could get for a little bit more money at Gap but with the same prices

as H&M. Some people say they are not getting the same quality and have therefore taken their

business elsewhere. In an article by Business Insider, Gap is referred to be “winning” over H&M

and Forever21 (Lutz, Ashley).

H&M is a very affluent brand in the world today. There are 3,100 stores in over 53

countries (H&M). Few other clothing brands can say the same about their global market. One of

the factors that H&M prides them on is being “responsible.” They are quoted as saying, “we

work actively to ensure a more sustainable chain of design, manufacturing and product handling

for both people and the environment” (H&M). They make sure to provide sustainability with

their products as well as their brand as I believe H&M will live on for many more years to come.

I believe consumers will come back to buy more from H&M. With every niche-clothing group,

there are competitors, especially in the image-obsessed world today. I believe similar clothing

brands do see H&M as a major competitor.

Because of their fast shipping times (even overseas), celebrity endorsements, and their

work with their social media, I believe their strengths outweigh their weaknesses. H&M has so

many opportunities in front of them to grow even more. Their major competitor, Gap is available

in 90 countries where as H&M is behind by 40 countries. This can be seen as a big threat but I

believe H&M sees the opportunity to grow while continuing to stick to their ideals.

Bibliography

H&M. Web. 29 Jan 2014. <http://about.hm.com/en/About/facts-about-hm.html>.

Lutz, Ashley. Business Insider. Web. 29 Jan 2014. <http://www.businessinsider.com/hm-and-

forever-21-are-losing-to-gap-2012-11>.

Wheeland, Matthew. GreenBiz. 29 Jan 2014. <http://www.greenbiz.com/blog/2009/04/01/wal-

mart-nike-hm-among-biggest-purchasers-booming-organic-cotton-market>.