H&M SWOT Analysis

H&M is one of the leading brands in the lifestyle and retail sector. H&M SWOT analysis evaluates the brand by its strengths & weaknesses which are the internal factors along with opportunities & threats which are the external factors. Let us start the SWOT Analysis of H&M:

H&M Strengths

1. H&M are the one of the largest global clothing retailer
2.  H&M have about 2300 stores in approx 45 countries and around 95000 people employed under them
3. The store offers quality and trendy clothing at affordable price, we can say designer clothes at department store prices.
4. Their overall delivery time is very low, it takes only 12 weeks for their products to come from the design stage to the retailer phase.
5. Guest designers coming in for different lines in the store.
6. H&M also keep the prices affordable by using few middle-men and buying large volumes cost consciously
7. They have been associated with celebrities and designers
8. They are present in many complimentary businesses which offers them better control and flexibility

Above are the strengths in the SWOT Analysis of H&M. The strengths of H&M looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

H&M Weaknesses

1. Buying large volumes could lead to overstocking and later on lead to lowering of the already affordable prices
2.  H&M have put in a lot of capital and maintenance fee for all the different types of machines required to produce clothes for each target segment

These were the weaknesses in the H&M SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

H&M Opportunities

1. Online shopping is gaining a lot of importance which can be tapped by H&M
2. Emerging economies will support H & M’s expansion plans
3. H&M are well positioned to tap the niche organic apparel market

Above we covered the opportunities in H&M SWOT Analysis. The opportunities for any brand can include prospects of future growth.

H&M Threats

1. Weak competitive situation as the prominence of value retailers and premium luxury brands increases
2.  H&M newest business line home-ware has not been able to click in Europe and hence is leading to lowering sales
3. Unemployment is also continuously pressurizing their target segment to discretionary spending

The threats in the SWOT Analysis of H&M are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the H&M SWOT analysis.

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About H&M

The table below gives the brand overview along with its target market, segmentation, positioning & USP

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing analysis of more brands and companies similar to H&M. This section covers SWOT Analysis along with Segmentation, Target Market, Positioning & USP of more than 2000 brands from over 20 industry sectors.

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