H&M Strategy

The firm has several agreements with providers which must sign H&M’s “behavior code” for ex in 2006 implementation of an agreement with Procter and Gamble (one on its providers) stipules that H&M can control P&G activities and all its fabrication process. ing high wages. That ability of adaptation shows that H&M can diversify its production and targets specific consumers: its factories make sportswear, masculine and feminine clothes, as well as accessories or lingerie. The role of advertisement is extremely important in H&M’s strategy.
The firm uses different ways to sell its products (stores, internet, catalogues): a huge budget is used for communication and advertisement. There is a lot of competition on the clothing market. Zara is the direct competitor of H&M but its prices are a little higher, so H&M enjoys a real economic advantage. H&M minimizes its production costs by building production factories in developing countries (like China, India…). The firm enjoys their foreign legislations because they authorized low wages (or lower than European legislations).
Social: The ethical aspect is one of the most important principles of H&M (inscriptions on t shirts must not be obscene, racist). For them, protection of animals is necessary (the firm has launched important campaigns), it doesn’t sell real fur, doesn’t buy leather from India for its cruel treatment of animals. And it doesn’t import materials from disappearing species. Moreover, H&M follows fashion and trends to satisfy its consumers and especially the teenagers. This is how the firm owns a real capacity of adaptation.

Technological: H&M also sells its products on the Internet by an efficient Websites. News is broadcasted on their Website (when a new line of clothes is launched for ex…everyone is aware of partnerships with famous people like Madonna, Karl Lagerfeld, Stella Mc Cartney. )The new technologies used by the firm are a way to make their advertising campaigns more efficient. Textile industry is protected by a lot of patents to assure the authenticity of products and counter fakes.