H&m Strategic Brand Management

H& M: Strategic Brand name Management


Hennes and Mauritz or even H& M is really a Swedish retail company that specialises in clothing and accessories for the whole family within the fast-fashion paradigm. It operates in 60 countries and has a developed vast network of online shops. Under the main H& M brand, there are several sub-brands such as COS, ARKET, & Other Stories, FaBric Scandinavian AB and others. Its combined network is the second-largest retail brand in the world. The company employs a combined staff of 148. 000 people around the world. The revenues of the firm as of 2016 constituted 25 billion U. S. dollars, and the net income is 2. 1 billion, which is a substantial result (H& M: annual report 2016).

Due to the financial and image success of H& M, it is paramount to review this brand and strategise its development in order to practice brand management skills. Thus, in this paper, multiple aspects of the H& M brand will be examined, including inventory, ownership, history, elements and other details, the analysis will be conducted, and recommendations will be offered.

Details About the Brand

History, Ownership and Products

The company was founded in 1947 and was called “Hennes. ” It was a woman’s affordable clothing shop in Sweden (H& M group n. d. d). Several years of growth and success led the owner, Erling Persson, to buy Mauritz Widforss store, and create H& M, the clothes shop for men and women. In 1977, the brand expanded its focus to children and teenagers, adding cosmetics (within a sub-brand) and accessories. Close to 1998, the company began its online expansion.

Value and Distribution

In comparison to 2015, the company demonstrated a decrease in value, as annual net incomes have decreased by 10%. Nonetheless, stock market value increased by 28% in addition to the 15% growth in assets (H& M: annual report 2016). Yet, in 2018 its net profit dropped by 32% already, which is an outcome of lots of competition through Zara (Sweden: H& M lays away a turnaround strategy to combat dropping profit 2018). The rand name is distributed by way of 4, 553 stores in 62 nations and online web sites classified by 47 nations (Sales development within the third one fourth 2017; H& M group and. d. a).

Brand Positioning

The brand positions by itself as an inexpensive clothing and add-ons retailer for stylish clothes. It provides cheap but stylish components of style in order to teenage boys, women plus teenagers (Dover 2018). The target companies are men and ladies from about sixteen to 24 that prefer to the actual trends but perform not wish to set aside much of their own budget to clothes.

Brand Elements

  • Name: Hennes and Mauritz or H& Meters (former Hennes)
  • Logo plus Symbol: Appendix one, figure 1.
  • Slogans: sustainable fashion, celebration all night, perform it anyway
  • [newline]

  • Packaging: whitened plastic bags along with logo. (Appendix one, figure 2)
  • Characters: women, men and teenagers
  • Jingles: none
  • Name: Hennes and Mauritz or even H& M (former Hennes)
  • Logo and Sign: Appendix 1, determine one
  • Slogans: lasting fashion, party almost all night, do it anyway
  • Packaging: white plastic bags with logo. (Appendix 1, figure 2)
  • Characters: young women, men and teenagers
  • Jingles: none
  • Brand Inventory

    Currently, H& M main produces wares in three categories: for men, women, children up to 14 years old. In the men’s category, the company sells general clothes, clothes for sports, underwear, accessories and footwear. For women, H& M offers clothing, sportswear, underwear, sleepwear, clothes for pregnant women, footwear, cosmetics and accessories. For Kids shops have regular clothes, footwear, sportswear, swimwear, accessories and all other items from adult categories (H& M: annual report 2016).

    Brand Analysis

    Brand Salience

    The awareness of the brand, in accordance with Keller’s pyramid of brand resonance, is a key success variable for a firm (Latif, Islam & Noor 2014; Keller 2013). H& Meters is rather renowned as popular information websites produce content material which is related in order to the company, which usually contributes to translation the company’s ideals. Inside a buying scenario, slogans such because “sustainable fashion” or even “do it anyway” or “fashion plus quality in the greatest price” the client memory space accepts the tips of “trendy, ” “independent lifestyle, ” “affordable. ” (H& M group and. d. c).

    Brand Performance

    In terms of cost, H& M will be favourably distinctive from the main competitor, Zara, as their goods are relatively cheaper. Regular discounts are furthermore part of its company’s policy, yet this is not distinctive from other retail clothes stores. Customer’s support is at the decent level, based to the research performed by Fabrics Intelligence Ltd (2007). Yet, there will be room for enhancement in terms associated with the buying online encounter (Creutz & Hurtig 2011).

    Brand Imagery

    The brand name offers a number of intangible associations through the websites and visible style of home design in shops. This translates the ideals such as the particular continuous flow associated with ideas, variance within style, affordable clothes for trendy women and men and so on (Interbrand 2014). Organizations may include brilliant and rebellious character, the absence associated with taboos and independence of self-expression. This is distinctive from the main competitor, Zara, that promotes even more strict, classic plus formal looks, which usually defines H& M’s imagery uniqueness within its segment.

    Brand Judgments

    Brand quality in H& M depends upon low cost, adherence in order to the latest habits, frequent collection up-dates and quality associated with wares. In regards to cost, this manages to outpace its competitors, however, according to Tyler (2018), the quality of clothing is better in Zara. In terms of fashion adherence, H& M also falls behind its rivals. The company has lots of items in stock, yet it experiences issues with selling them. All of these parameters yield slightly unpleasant brand judgments, which resulted in poorer performance.

    Brand Feelings

    H& M inspires acceptance of an individual as a part of society and promotes the self-expression and uniqueness of any person. A recent YouTube commercial promotes endless exploration of self and embracing of one’s personality (H& M group 2018). These qualities and perceptions inspire the feelings pertaining to youth and appear to work in accord with its marketing strategy. Since the target audience is young men and women from 16 to 24, the feelings seem to align with them.

    Brand Resonance

    Behavioural loyalty in H& M is promoted by the breadth of values and client identity. Virtually any young person who likes stylish clothes could be defined as its customer. The loyalty is reinforced by the variety of sale offers and lots of clothing items available to satisfy every taste (Roberts 2017). The sense of kinship can also be attributed to the strength of H& M’s resonance, yet uniting its customers under “fashionable youth” may slightly too general.

    Suggestions and Recommendations

    In H& M, there is plenty of room for improvement and need for it because the company’s incomes are dropping. Creutz & Hurtig (2011) propose customer service improvement by means of warehouse networks and optimising online shopping experience. This approach is justified since the website has plenty of “out of stock” models, the delivery of which requires additional time. In addition, it could be suggested that H& M should narrow its audience instead of being “everything for everybody. ” The reason for that is the fact that better knowledge of its target customers leads to the more customised product whereby achieving stronger brand loyalty and more substantial revenues (Gamboa & Gonçalves 2014).

    Due to the high amounts of items on display in stores, the interior looks chaotic and lowers customer satisfaction as it becomes harder to find the item for oneself. As quality is also a part of the brand’s motto, such disorganised shops undermine the brand’s judgment and need to be regulated. To establish a more pronounced link between high-quality clothing and affordable price, H& M can partner with multiple fashion-focused media and demonstrate their new items that are presented like luxury ones but with affordable price tags (Basney 2014). In order to elicit more feelings from customers and build trust, the brand could align itself with social projects aimed at youth, such as child labour abolition (Tingchi et al., 2014).


    All things considered, H& M is a solid and well-established brand with millions of customers around the globe. It unites a broad audience of young men, women and teenagers, offering a variety of fast-fashion clothes at low prices. Its relevance on the market is rather high, yet by certain parameters, it performs with less achievement. Its financial overall performance in the final year has already been not even close to exemplary.

    Partly, the factors for such condition of affairs will be the gaps within brand management. The overly generalisable placement includes a number of people yet sometimes does not work out to address their demands with quality items and service. This case could be resolved by reworking the particular online and off-line shopping experience, the partnership with style magazines and involvement in improving business social responsibility.

    Appendix 1

    Reference List

    Basney, W 2014, ‘Brands because publishers: using content material and paid press to fuel a brandname transformation’, Journal of brand name Strategy, vol. a few, no. 2, pp. 101-110.

    Creutz, J & Hurtig, V 2011, Goods allocation ways of increase the client service level in H& M on the internet, utilizing a stockroom network, Master Thesis, Chalmers University associated with Technology. Web.

    Dover, S 2018, H&M shows shoppers to get care of their own clothes, Mintel. Internet.

    80 Quartier 2017, H& Meters sales drop, presenting two new brand name concepts. Web.

    Gamboa, AM & Gonçalves, HM 2014, ‘Customer loyalty via social networks: training from Zara upon Facebook’, Business Horizons, vol. 57, zero. 6, pp. 709-717.

    H& Meters group n. deb. a, Markets. Internet.

    H&M: annual report 2016 2016. Web.

    H& M team n. d. w, H& M team.  Web.

    H& M group and. d. c, Fashion and quality clothes in the best price. Web.

    H& M group and. d. d, History.  Web.

    H& M new fall months collection: for each you 2018, on the internet video, H& Meters group.  Web.

    Interbrand 2014, Best brands. Web.

    Keller, K 2013, Strategic brand management, 4th edn, Pearson, Boston, MA.

    Latif, WB, Islamic, A & Noor, IM 2014, ‘Building brand resonance in a competitive environment: a conceptual model. ’ Advances in Environmental Biology, vol. 8, no. 9, pp. 593-601.

    Roberts, P 2017, ‘5 reasons why retailers should look to H& M for customer experience tips’, Medium. Web.

    Sales development in the third quarter 2017 n. d. Web.

    Sweden: H& M lays out turnaround plan to combat falling profit 2018. Web.

    Textiles Intelligence Ltd 2007, Profile of H& M: a pioneer of fast fashion – research and markets. Web.

    Tingchi, M, Wong, I, Shi, G, Chu, R & Brock, J 2014, ‘The impact of corporate social responsibility (CSR) performance and perceived brand quality on customer-based brand preference’, Journal of Services Marketing, vol. 28, no . 3, pp. 181-194.

    Tyler, J 2018, ‘We visited H& M and Zara to see which has been a better fast-fashion store, and the particular winner was crystal clear for any key reason’, Business Insider. Internet.

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