SWOT Analysis
The SWOT Analysis for H&M is as follows:
Strengths
1. One of the largest store and brand expansion across both domestic and
foreign markets
a. H&M has achieved global brand awareness by offering options for to women,
men, teenagers, toddlers, and infants.
b. Offers wide range of high quality products at low cost
2. H&M offers sustainable fashion that is affordable, great quality, and fashion
forward.
a. They’ve launched a “Conscious Exclusive collection”. The collection
comprises of high-end environmentally friendly pieces, aiming to move
H&M’s fashion and sustainability development towards a more sustainable
fashion future.
3. People oriented corporate culture
a. Among other values, “We are one team” is a value implemented within
company that encourages teamwork, leadership, and innovation.
4. Strong philanthropic culture
a. Customers have the opportunity to receive a discount by donating a small
bag clothing
b. H&M non-profit foundation gives back by encouraging long-term positive
change and improving living conditions by investing in people, community,
and innovative ideas.
Weaknesses
1. Very broad range Target Market
a. Due to many different consumer styles, without one specific fashion focus,
there is a very broad range for H&M’s target market.
b. This is a weakness because it invites in many different competitors – and not
only large store like H&M.
2. Not the “trendsetters”
a. H&M usually follows trends of high-end fashion brands – meaning, they are
not the “trend setter” of any stylistic trends.
b. People will not need to specifically go to H&M for a specific item of clothing.
This store can be easily substituted.
Team H&M – Project 2 3
3. Production is in very large volume
a. Because H&M produces their product at such a large volume, there is no true
guarantee items will be sold.
b. Although they are not trendsetters, and usually produce clothes that are
popular at the time – the high volume is a weakness incase this article of
clothing goes out of style before all products are sold.
Opportunities
1. Advancement of technology
a. With the age group that H&M mainly targets, they have technology as an
advantage to adhere to their customers and attract them with electronic
coupons and promotions.
b. Social Media; biggest advantage in capturing the attention of
teenagers/young adults.
2. Customer database
a. Capturing customer’s information and emails to keep them updated on the
latest promotions throughout the store.
3. Inexpensive fashion
a. Young adults get bored fast and are always looking for something new. H&M
is known to constantly have new fashion trends for a very reasonable price.
Threats
1. Competition
a. With the ease of entry into the fashion world, H&M has several threats of
competition including Zara, Uniqlo and The Gap, which have very similar
business models.
b. In addition competition from national and international fashion brands that
can target mass markets via the Internet and social media sites are a threat.
2. Change in Fashion Trends
a. Styles change with every decade, currently people are socially conscious and
place value on fashion brands with social responsibility and sustainability,
when that focus changes H&M will have to adapt a different message to gain
a mass audience.
3. Increase in Trade Barriers
a. H&M uses suppliers from over 820 independent suppliers from Europe and
Asia, a change in taxes or trade agreements could harm the pricing structures
set.
Team H&M – Project 2 4
Table format*
Strengths
● One of the largest store and brand expansion
across both domestic and foreign markets
○ H&M has achieved global brand awareness by
offering options for to women, men,
teenagers, toddlers, and infants.
● Offers wide range of high quality products at low
cost
○ H&M offers sustainable fashion that is
affordable, great quality, and fashion forward.
○ They’ve launched a “Conscious Exclusive
collection”. The collection comprises of high-
end environmentally friendly pieces, aiming to
move H&M’s fashion and sustainability
development towards a more sustainable
fashion future.
● People oriented corporate culture
○ Among other values, “We are one team” is a
value implemented within company that
encourages teamwork, leadership, and
innovation.
● Strong philanthropic culture
○ Customers have the opportunity to receive a
discount by donating a small bag clothing
○ H&M non-profit foundation gives back by
encouraging long-term positive change and
improving living conditions by investing in
people, community, and innovative ideas.
Weaknesses
● Very broad range Target Market
○ Due to many different consumer styles,
without one specific fashion focus, there is
a very broad range for H&M’s target
market.
○ This is a weakness because it invites in
many different competitors – and not only
large store like H&M.
● Not the “trendsetters”
○ H&M usually follows trends of high-end
fashion brands – meaning, they are not the
start of any stylistic trends.
○ People will not need to specifically go to
H&M for a specific item of clothing. This
store can be easily substituted.
● Production is in very large volume
○ Because H&M produces their product at
such a large volume, there is no true
guarantee items will be sold.
○ Although they are not trendsetters, and
usually produce clothes that are popular at
the time – the high volume is a weakness
incase this article of clothing goes out of
style before all products are sold.
Opportunities
● Advancement of technology
○ With the age group that H&M mainly targets,
they have technology as an advantage to
adhere to their customers and attract them
with electronic coupons and promotions.
○ Social Media; biggest advantage in capturing the
attention of teenagers/young adults.
● Customer database
○ Capturing customer’s information and emails to
keep them updated on the latest promotions
throughout the store.
● Inexpensive fashion
○ Young adults get bored fast and are always
looking for something new. H&M is known to
constantly have new fashion trends for a very
reasonable price.
Threats
● Competition
○ With the ease of entry into the fashion world,
H&M has several threats of competition including
Zara, Uniqlo and The Gap, which have very similar
business models. In addition competition from
national and international fashion brands that can
target mass markets via the Internet and social
media sites are a threat.
● Change in Fashion Trends
○ Styles change with every decade, currently people
are socially conscious and place value on fashion
brands with social responsibility and sustainability,
when that focus changes H&M will have to adapt a
different message to gain a mass audience.
● Increase in Trade Barriers
○ H&M uses suppliers from over 820 independent
suppliers from Europe and Asia, a change in taxes
or trade agreements could harm the pricing
structures set.
Team H&M – Project 2 5
References
About H&M. (n.d.). Retrieved September 22, 2016, from
http://about.hm.com/en/About.html
MBA Skool, Z. (n.d.). H and M | SWOT Analysis | USP & Competitors | BrandGuide | MBA
Skool-Study.Learn.Share. Retrieved September 20, 2016, from
http://www.mbaskool.com/brandguide/lifestyle-and-retail/2934-h-and-m.html
Parietti, M. (2015). H&M Vs. Zara Vs. Uniqlo: Comparing Business Models. Retrieved
September 20, 2016, from
http://www.investopedia.com/articles/markets/120215/hm-vs-zara-vs-uniqlo-
comparing-business-models.asp
(n.d.). The Textile Industry and H&M. Retrieved September 21, 2016, from
http://sustainability.hm.com/en/sustainability/about/hm-conscious/the-textile-
industry-and-hm.html
Production process. (n.d.). Retrieved September 19, 2016, from
http://about.hm.com/en/About/facts-about-hm/idea-to-store/production-
process.html#cm-menu
Responsible partners. (n.d.). Retrieved September 20, 2016, from
http://about.hm.com/en/About/sustainability/commitments/responsible-
partners.html#cm-menu
Supplier list. (n.d.). Retrieved September 20, 2016, from
http://sustainability.hm.com/en/sustainability/downloads-
resources/resources/supplier-list.html#cm-menu
Zhu, Y. (2016). Here's Why You Shouldn't Freak Out Over H&M's Sales Growth Slowdown.
Forbes Business, from
http://www.forbes.com/sites/yehongzhu/2016/06/23/heres-why-you-shouldnt-
freak-out-over-hms-sales-growth-slowdown/#7d843b9a78c8