H and M SWOT Analysis, USP & Competitors

H and M

Parent Company

H & M Hennes & Mauritz AB

Category

Apparel and Accessories

Sector

Lifestyle and Retail

Tagline/ Slogan

Who’s next; Get ready to do some serious shopping; You look nice today

USP

Collaboration of chic , stylish clothes along with a classic look at affordable prices

H and M STP

Segment

People who love to spice up their wardrobe and want to look uber stylish at all times

Target Group

Women, Men , Teenagers who have medium to high purchasing power and have a completely vibrant and rebellious attitude

Positioning

Perfect combination of high class brands along with trendy fashion at affordable prices

H and M SWOT Analysis

Strengths

1. They are the one of the largest global clothing retailer
2. They 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. They 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

Weaknesses

1.Buying large volumes could lead to overstocking and later on lead to lowering of the already affordable prices
2.Also their target customer base is highly affected by the changing macro -economic conditions
3.They 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

Opportunities

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

Threats

1. Weak competitive situation as the prominence of value retailers and premium luxury brands increases
2.Their 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

H and M Competition

Competitors

1.Zara
2.Forever 21
3.Gap