1.Rivalry Is High Because H&M As A Fast Fashion Retailer

852 WordsApr 5, 20174 Pages
1. Rivalry is high because H&M as a fast fashion retailer always have a large number of similar retailers which includes large and small firms. Their competitors could be Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW and Bass, Banana Republic, Speedo and Warner 's and Old Navy. In addition, the fast change in the industry also causes to firms to always renew their products in order to meet customer’s requirement. If H&M’s clothing don’t match customer’s taste, other competitors will immediately get their profit. Amongst all competitors, their main competitors are: Zara. To getting more power from other competitors such as Zara, H&M differentiate themselves by forces on different consumer types, online offering, price range, and…show more content…
Third, there are many manufacturing contractors available and this contributes to making the market more open to new entrants. The threat is medium because H&M overcome those threats by establishing strong brand enough to create brand loyalty, the new entrants will face the fact that they are not well known to customer since the advertising and building distribution channels can be a huge expense to them. 3. Bargaining power of suppliers The bargaining power of suppliers is low because there are so many similar suppliers available. Even though H&M does not have any factories of its own, they could get sources from foreign manufactures such as low wage countries to get more advantage competitive. Their suppliers could be companies which provide textiles and cotton. In 2016, H&M had 820 independent suppliers and around 1900 factory in total in Europe and Asia such as China, Bangladesh, India, Cambodia and Turkey. Because H&M have a lot of choice from their suppliers, and they also claim that they make suppliers satisfied by paying the employees in the textile industry a fair living wage, providing them well working conditions as well as Human rights and workers’ rights, it become hard for the suppliers to overpower the brand. (http://sustainability.hm.com/en/sustainability/about/hm-conscious/the-textile-industry-and-hm.html) 4. Bargaining power of buyers The bargaining power of

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