H&M SWOT Analysis | SWOT Analysis of H&M

H&M SWOT Analysis

H&M (Hennes & Mauritz AB) is the 2^nd famous fashion retailer across the world. It is a Swedish Company and its quick fashion strategy is the biggest advantage for its success. It’s headquarter is located in Stockholm, Sweden. The company started working with a single store and now it is working in 6 continents with thousands of stores and retailers. It’s a big inspiration for small fashion retailers and stores. Today, we will talk about H&M SWOT Analysis | SWOT Analysis of H&M, the strengths, weaknesses, opportunities, and threats of H&M.

H&M SWOT Analysis | SWOT Analysis of H&M

Company: H&M – Hennes & Mauritz AB

Founder: Erling Persson, October 4th, 1947

CEO: Helena Helmersson

Head office: Stockholm, Sweden

Type: Public

Present Employees (2023): 101,103

Annual Revenue (August 31, 2023): US$22.312B

Net income | Profit (August 31, 2023): US$0.311B

Products or Services: Outfits | Clothing | Underclothing | Footwear | Makeup Cosmetics | Accessories | Sportswear| Home Textiles

H&M SWOT Analysis | SWOT Analysis of H&M 

H&M’s Strengths:

1- Successful Merchandising Policy:

It is a fact that the fashion retail business basically relies on successful selling policies. The main reason for the success of H&M is the fast fashion model. It offers the latest designer products and items. It takes only 2 weeks to deliver products from the designer table to the retail area.

2- Worldwide Presence:

Today, H&M has 5076 stores across the world in 74 famous markets. From Europe to Africa, North America, Asia, Australia, and Latin America, the H&M offers quality fashion products and improve stability.

3- Competitive Pricing:

H&M is best known for its quality fashion products at a cheaper price. Sometimes the price varies according to the type of product. The flexibility and cost-effectiveness model is the real reason behind the success.

4- An Array of Products:

H&M offers a variety of products that attract consumer’s attention easily. From clothing to shoes, cosmetics, and many more, H&M’s exceptional brands such as Cheap Monday, H&M Home, and Arket provide an array of products.

5- Precious Brand:

To run a successful brand, it is necessary to adopt a customer-centric model. From its beginning, H&M uses this model and become a valuable brand. H&M was categorized as the 58^th world’s most valuable brand in 2019.

6- Powerful Online Channels:

Most of the companies are using the internet for selling and purchasing in this modern age. H&M has a powerful online presence around the globe and the biggest source of income.

7- Competent Supply Chain:

The popular companies require a competent supply chain to keep in touch with contractors and suppliers. H&M has its biggest NextGen supply chain which is extremely helpful.

8- Community-Centered Approach:

It is really significant to understand the community’s need to create a sustainable business. The company stopped its operations in the US in support of campaigners. H&M also focused on aiding communities distressed by deadly diseases in Bangladesh.

H&M SWOT Analysis | SWOT Analysis of H&M

H&M’s Weaknesses:

1- Overconfidence on Outsourcing:

H&M manufactures some products in-house; otherwise, it outsources most of its manufacturing from over 900 self-sufficient contractors. However, this strategy contributed to its achievement, but it sets the brand at the mercy of the dealers.

2- Controversial Products:

H&M faces a massive backlash and people boycotted its products for encouraging racism in 2018. H&M hired a black child model to promote its hoodie containing the expression ‘’coolest monkey in the jungle’’.

3- Boring Fashion:

As we said that, H&M majorly relies on independent suppliers. That’s why they don’t have the latest fashion designs and models. This weakness gives a chance to other competitors to show new trends.

H&M SWOT Analysis | SWOT Analysis of H&M

H&M’s Opportunities:

1- Diversified Products:

Many fashion companies and retailers offer a variety of options to earn more profit and stability. H&M also focus and improve its variety of options by giving sports apparel. This massive opportunity will help H&M to increase its options and reputation.

2- Utilize E-commerce Completely:

H&M should learn from Zara how to exploit online channels. As more people purchase online, this thing will be a game-changer for H&M to expand its online sales. This is the best and easy way to increase brand name and profit.

3- Pay Attention to Rising Markets:

It is a big opportunity for H&M to develop more brand recognition in Africa and Asia. These rising markets have the potential to establish the brand efficiently.

4- Develop Through Acquisition and Unions:

To enter the narrow or difficult market, the best way is to join with other companies and acquisitions. H&M can increase its market value by merging with secondhand marketers through acquisition.

H&M SWOT Analysis | SWOT Analysis of H&M

H&M’s Threats:

1- Imminent Recession:

Though, apparel, footwear, undergarments are essential everyday items. But due to the recent recession in Europe and other regions of the globe, fashion traders such as H&M will face a massive decline in profits and sales.

2- Hard Competition:

There’s a big competition among H&M, Zara, Gap, Boohoo, Macy’s, and many more. They all trying to increase their market share and minimize the demand for H&M’s products.

3- Expand in Counterfeits:

Honestly speaking, there are hundreds of fake brands in the market. But their expanding demand and increasing value can break the image of designer brands like H&M.

4- Growing Operation Costs:

Internationally, earnings for sellers are declining regularly due to an increase in the price of material and laborers. This kind of thing will threaten the operation and creation of H&M.

5- Trade Tax:

H&M outsources most of its products from different regions of the world which leads to a huge amount of tariffs. It also experiences a huge loss due to the Brexit deal.

6- Global Pandemic:

The success of H&M is totally relying on a nonstop stream of material and products. But due to lockdown and quarantine has reduced this flow which tends to interrupt the flow of profits and sales.

Need Help or Advice in Academic Writing

https://independent.academia.edu/shamsulIslam8

Would you like more advice? Do you have good practices to share? Please feel free to express yourself in the comments. Also, if you want help in writing content to drive more traffic and boost conversions, please get in touch through Contact our team or send your requirements here.

Read More:

Starbucks SWOT Analysis 2020 | SWOT Analysis of Starbucks

SWOT of American Express | American Express SWOT Analysis

SWOT of Amazon | Amazon SWOT Analysis