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factors are size range, styling of the fashion season, price of the lines, type of collections, the
and gender of the target market.
In a competitive marketplace, four concepts are strategic to manage the business and to reach
purpose of profit and customization better than the competitors do:
The quality of the design and fabrics (quality standards for all aspects of the product:
textiles, buttons, zippers),
The price of the products,
Innovation (how unique and trendy the goods are),
Services (direct marketing offered to the customers like electronic catalogue/dressing
H&M’s business is characterized by the encounter of the four keystones to give the customer
unique values which are communicated through the philosophy of “fashion and quality at the
price”35. This motto is transmitted through advertising campaigns and working with
professional models to diffuse H&M’s values in its sales countries in order to raise brand’s
customer’s confidence in the long term.
Before analyzing, the four keystones it is significant to relate them with the H&M’s idea of
As Brauth & Brow affirm, the main goal of the merchandising and fashion field is to “make a
by developing an assortment of products that reflects the company’s market strategy and that
delivered and sold on time”36. Thus, every single keystone needs to reflect H&M’s identity.
The creation of a new line comes from a variety of inputs, such as research about an historical
period and exotic or popular cultures, travels to other locations to collect fascinating fabrics,
textures or accessories, music, movies, exhibitions and the understanding of the market target
consumer in order to produce an innovative design.
To reach this purpose and to offer the latest fashions, H&M has opened its own buying
in Stockholm in order to produce unique clothing collections.
A triangular sketch can represent the concept of fashion in H&M. The triangle’s bottom
the basic products sold in large quantities. On the other hand, the top represents the trendiest
apparels that can be found in small quantities. The aim is to offer to consumers the possibility
create their own style because they can choose and wear different style of clothes.
First keystone: Quality
H&M’s quality concept suggests the idea of satisfaction in a twofold means. In the first
interpretation, the aim of the company is to meet the costumer’s needs in order to satisfy their
requirements and to empower the brand identity.
There is a distinction between brand image and brand identity. The image of a brand is what
in the mind of consumers. It is “the total of all the information they have received about the
brand”37. They are gathered this image through their experiences and perceptions, word of
advertising campaigns, marketing services, etc. These are not under the company’s control
is why H&M must work on these perceptions.
On the other hand, the fashion company manages brand identity. It is the essence and the core
expression of the brand transmitted to the target market.
The price policy is another strategic component of H&M’s success. Flexibility in production
ensure the best price. It is relevant to understand the various processes, agencies, and staff
in this complex business transactions. The alliance between H&M’s manufacturers and
the effective sharing of information between the production offices and the suppliers are
increase the speed with which merchandises are delivered to consumers. This is decisive as
receive the feedback from the store to the buying department.
Despite companies are keeping the use of a mass marketing perspective to sell their products,
during the second half of the twentieth century many companies are moving from profit-
strategy towards a new philosophy characterized with segmentation of the market and
variety of goods to experienced customers40.