H&M SWOT Analysis
Here is a detailed SWOT analysis of H&M covering strengths, weaknesses, opportunities and threats.
H&M Strengths
- H&M are the one of the largest global clothing retailer
- H&M have about 2300 stores in approx 45 countries and around 95000 people employed under them
- The store offers quality and trendy clothing at affordable price, we can say designer clothes at department store prices.
- 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.
- Guest designers coming in for different lines in the store.
- H&M also keep the prices affordable by using few middle-men and buying large volumes cost consciously
- They have been associated with celebrities and designers
- 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
- Buying large volumes could lead to overstocking and later on lead to lowering of the already affordable prices
- 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
- Online shopping is gaining a lot of importance which can be tapped by H&M
- Emerging economies will support H & M’s expansion plans
- 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.
Read more about H&M
H&M Threats
- Weak competitive situation as the prominence of value retailers and premium luxury brands increases
- H&M newest business line home-ware has not been able to click in Europe and hence is leading to lowering sales
- 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
| H&M Overview | |
|---|---|
| Parent Company |
H & M Hennes & Mauritz AB |
| Category |
Apparel and Accessories |
| Sector | |
| 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&M STP | |
| Segmentation |
People who love to spice up their wardrobe and want to look uber stylish at all times |
| Target Market |
Women, Men , Teenagers who have medium to high purchasing power and have a completely vibrant and rebellious attitude |
| Positioning |
H&M offers the perfect combination of high class brands along with trendy fashion at affordable prices |
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