Sustainability of H&M in Competitive Apparel Market

3989 Words Nov 13th, 2013 16 Pages
Managing Customers and Markets

Topic:
Sustainability of H&M in Competitive Apparel Market

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Summary:
With an ever-increasing numbers of competitors gaining traction globally and more big retailers stepping into the low-cost fast-fashion industry, H&M has encountered difficulties in prolonging its competitiveness to retain consumers and surviving in the keen global apparel market. However, H&M has set its insight in finding new ways to maintain industry leadership and ranked 23 in the Best Global Brands 2012 while its main competitor Zara only at 37. This paper will examine the strong positioning of H&M by using 3Cs (Company, Consumer and Competition) and STP (Segmentation, Targeting and Positioning)
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The implication of SWOT analysis is about matching the strengths to opportunities while converting weaknesses or threats into strengths. From the analysis, we can see that H&M has stronger strengths and more opportunities than its weaknesses and threats. Therefore, it is believed that H&M has the ability to react to the choppy global economic conditions and ever-changing consumers’ preferences by offering fashionable products at low price without sacrificing quality.

2.1 Competitor Analysis
Competitor analysis is an assessment of the strengths and weaknesses of current and potential competitors. There are many closest comparable competitors competing with H&M, they are Zara, Gap, Uniqlo, Forever 21, Abercrombie & Fitch and Bershka. Points of parity include ready to wear trademarks, products for all men and women, good value products, affordable price and retail clothing stores (Skema Research Center, 2012). The strengths of these competitors may threaten H&M’s position as the world market

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