H&M SWOT Analysis, Competitors & USP

SWOT analysis of H&M analyses the brand by its strengths, weaknesses, opportunities & threats. In H&M SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like H&M to benchmark its business & performance as compared to the competitors. H&M is one of the leading brands in the lifestyle and retail sector.

The article below lists the H&M SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the H&M SWOT Analysis:

SWOT Analysis of H&M

For H&M, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

H&M Strengths

The strengths of H&M looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of H&M :

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

H&M Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the H&M SWOT Analysis:

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

H&M Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in H&M SWOT Analysis:

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

H&M Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of H&M are as mentioned:

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

H&M Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 12 competitors of H&M:

1. Chanel

2. Christian Dior

3. Burberry

4. Ralph Lauren

5. Prada

6. Gucci

7. Louis Vuitton

8. Hugo Boss

9. Hermes International

10. Versace

11. Valentino S.P.A

12. Zara

Hence this concludes the H&M SWOT analysis.

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About H&M

H&M Overview
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&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

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.

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