Company focus: H&M
- Executive summary.
- Some facts to begin.
- Target definition of the company.
- Positioning of the brand.
- 4 P's analysis.
- SWOT analysis: Key points.
- Current issues.
- Focus on Karl Lagerfeld's collection.
Just a small quiz to begin: do you know which fashion house organized its runways in Central Park for the 2005 winter collection? A clue for you: this famous name of the fashion industry had Karl Lagerfeld as designer, and Kate Moss as top model? You are answering Chanel of course, and it could be this famous French fashion house, but it is not? No, the famous name is not part of the high-fashion world, and could even been described as the opposite, in spite of its guest stars. We are talking about H&M, one of the leaders in the clothing industry, which has set up a successful strategy to spread its vision of fashion all around the world. H&M has today become a leader in the fashion industry in Europe, and its foothold in the USA and Canada is evidence that the expansion of the firm is not finished. The message spread by the company ?we offer you the latest trends for affordable prices? ensured a rapid growth, and the brand is nowadays known by the majority of customers, from little girls to fashionable mothers.
Tags: Marc Jacobs case study, Tom Ford case study, Analysis of Tom Ford and Marc Jacobs, Strategy of Tom Ford, Strategy of Marc Jacobs
[...] H&M has made inexpensive desirable?, Lagerfeld explains. With a structure of just 30 pieces, a limited color palette (black and white with accents of brick red and plum), high collars, razor sharp tailoring, starch-fresh shirts and slim polo necks, which are very much Lagerfeld's preferred personal style, the designer created one of the most anticipated events in the ready-to-wear industry last year. This partnership once again put H&M on the stage, and increased its credibility. The advertising policy around this event was also well thought out. [...]
[...] The company should always mix fashionable and basic items on the mannequins in the windows to show classical customers that H&M items can really fit everyone To differentiate from its competitors, the company should develop its own unique marketing tools. For example, the men's and children's collections are wider today, but H&M does not promote them heavily because it knows that the core of its customers is women. However, since these items exist, the firm should promote them through new advertising campaigns: this initiative could allow it to reach these new targets more rapidly, to differentiate from Zara or emerging competitors, and to equal GAP, whose communication on all collections is real. [...]
[...] Nevertheless, people keep in mind that the quality of H&M items is not good, even if the company is promoting its latest efforts. Furthermore, H&M clothes are said to be too fashionable for more classical populations, who are not ready to buy clothes in the giant chain. Finally, competition is growing around the concept of ?fashion at low prices?, and competitors are beginning to copy the successful promotion policy of the firm. Competition The two biggest competitors of H&M in terms of international presence and product offering are unquestionably Gap and the group Inditex, whose flagship is Zara. [...]