Art of War and Marketing Class Exercise 3

SWOT Strengths: 1.Brand recognition: low price and rapid changing styles. 2.High profile advertising and collaboration with designers. 3.Operational efficiency: A strong control of the whole logistics process helps H&M achieve low costs, while low inventory contributes to maintain margins. Weaknesses: 1.Reliance on outsourcing puts H&M at greater risks of damaging its reputation in terms of product quality and poor labour conditions in developed countries. 2.Modest presence in emerging markets: Despite being a global player present in 33 markets, H&M has developed its presence in Europe and North America mostly. Opportunities: 1.Untapped potential in emerging markets. 2.Internet retailing its core demographic target, teenagers and young adults, whose purchases are often influenced by the internet. Threats: 1.Hypermarkets and mass merchandisers including Carrefour, Target, Tesco and Wal-Mart are set to continue developing their offer of non-food products and compete directly against H&M in the value segment of clothing and footwear retailing. 2.Fast fashion becoming more competitive: H&M faces a growing threat from a number of direct competitors with increasingly global ambitions at the low-priced end of the market such as Associated British Foods with Primark, Fast Retailing with UNIQLO and Marks & Spencer, alongside a resurgent Gap.

Unique selling points of H&M Young people do not study label carefully to take care of their clothes. Style rather than quality is the main concern. Fast fashioning and style is the trend.

造勢 聘請 McDonna 為代言人 於沿線地鐵站賣廣告 於中環旗艦店外設海報 Discount and promotion