Market Segmentation of H&M

Hennes & Mauritz, or H&M, was established by Erling Persson in 1947. (H&M history). The company has expanded significantly over the years, presently having more than 3,900 outlets in 61 different countries worldwide, and this number is rising by 15% each year (H&M sales markets). H&M strongly emphasizes sustainability, employing recycled clothing and organic cotton. We’ll examine H&M’s market segmentation today.

Let’s begin by discussing H&M’s positioning approach.

Watch one of H&M’s advertisements first, though.

So, what can we gain from the commercials? By 2030, H&M wants to cut its greenhouse gas emissions, and research supports this goal. Additionally, it has promised to employ only sustainable or recyclable materials by 2030. Although it’s excellent that H&M emphasizes sustainability, these commitments would undoubtedly represent considerable progress if they are simply objectives, and 2030 is still some years away.

H&M has always been a leader in the fashion industry, having developed their aptly named “conscious” collections in 2012 and continuing to do so. 

According to H&M, their collection and ad “explores the beauty of trash” (H&M, 2020). The collection and marketing strategy they have created make this quite evident. They created delicate items in the collection from garbage that would typically be thrown away and constructed from sustainably sourced materials for someone else to adore (H&M, 2020).

The collection’s theme shows consumers the value of trash and illustrates how everything can be made beautiful with a bit of creativity, which H&M undoubtedly have.

Womenswear products, such as elegant dresses in black and green taffeta, delicate green flowers combined with gently structured tops, and flamboyant ruffles with dramatic volume, can be observed while viewing the campaign and pictures.

The exquisitely designed collection includes textiles from PET bottles, post-industrial plastic containers, and post-consumer carpet fibre (H&M, 2020). 

Finding out that H&M appreciates collaborating with Conscious Progressives is exciting.

See, why will we?

Progressives are incredibly clever people who are aware of what they are doing. They are constantly seeking new knowledge. People nearby always have an advantage since they can in some way obtain necessary information from Progressives.

Progressives are real people who have a practical outlook on life. In particular, you can see their financial pragmatism. They do not squander money on things they do not need.  

For progressives, appearance is crucial. They are stunning not only for their physical attributes but also their intelligence and charisma.

This group mainly consists of friends they can rely on and trust. They value quality time spent with their buddies and don’t care where they meet together.

Progressives want to have rewarding professions. On the other hand, progressives are not always willing to make concessions to progress their careers.

This group values returning as much as they can to their employers. If progressives truly believe something, they will stand by it. They are open to hearing from anyone who has a reasonable disagreement with their viewpoint.

Additionally, Conscious Progressives have better than average ratings and are ardent media consumers. The majority of the material they consume is instructional. Through the media, they keep themselves informed. They use the media as an active tool, watching or listening to the radio. 

Newspapers are also essential to progressives who are aware (50 per cent read daily). Newspapers give them a feeling of seriousness and cerebral complexity. They want to be informed about the nation’s political and economic problems, so they may use that information in any argument.

We have recently published a book titled “16 Personalities,” which offers detailed insights that might catch your attention.

• Delve into specific sections more comprehensively to learn effective ways of engaging with them.
• Uncover methods for captivating their interest and devising persuasive communication strategies.
• Develop a profound comprehension of customers by exploring their values and apprehensions associated with these personalities.
• The book serves as a valuable resource for individuals seeking to enhance their understanding of target markets and buyer personas.

We’ll then examine H&M’s positioning strategy.

Everybody leaving a clothing store with a purchase is the store’s only objective. The H&M brand understands this very well. And the marketing plan that we’ll discuss below has been the key to its success.

Where do you keep your mannequins?

There are multiple mannequins in the front of this brand’s actual storefronts. Unlike what you may see on coat racks or in shops, mannequins always wear high-quality clothing. The location of the figures is referred to as the “hot zone.” because it helps the retailer swiftly sell its top goods. They act similarly to a consumer’s guide. You can readily locate the components behind them, so the customer receives the hot zone merchandise.

The design of the store. 

Since marketing aims to provide customers with a positive experience, H&M has thought of a pretty intriguing method. A store’s purpose goes beyond serving as a venue to make purchases. Since providing the buyer with value is of utmost importance.

To support the tactics employed by H&M, the architecture division of the company designed the inside of the stores. You may enjoy each internal feature in this design. So everything has a unique touch, including the shelves, lightbulbs, and stairs. The intention is for the customer to enjoy their shopping experience and want to come back. Additionally, the flawless interior design encourages customers to take pictures and post them on social media.

The partnership of well-known fashion designers occurs once a year.

Cross-brand partnerships have the potential to be an effective sales strategy for H&M. Since 2004, and the company has been engaging in this activity.

Collaborations have increased in a variety of ways. Along with Versace, Roberto Cavalli, and many others, they continue to develop unique apparel pieces today.

Working along with influential celebrities.

Great celebrities have also worked with the H&M firm. Both for the press they received and the Met Gala exhibition of their best attire. Additionally, some stars walk the red carpets wearing only H&M clothing. Like Winona Ryder, who wore a black outfit to the Oscars. The company’s tagline, “Our garments are no worse than premium labels. They allow you to seem like your idol,” derives from this.

Utilizing sustainable marketing. 

The goal of this company’s approach was to produce fashion without harming the environment. They don’t use pesticides or other chemicals when growing the organic cotton they use to create their clothing. All of the items in the “Conscious” series are composed of organic materials.

Natural resources are not a concern for H&M. Thus, giving worn garments a second chance at life is feasible. 

The business tries its best on the web-store.

Millions of individuals use the internet to make purchases of goods and services. This implies that a company won’t be noticeable if it doesn’t have an internet presence. The online presentation of H&M’s merchandise comes before they display their products on the shelves and mannequins in actual stores.

Every Thursday at eight in the morning, the H&M website is refreshed.

Additionally, they provide “free delivery” as an alternative to appease their clients.

Let’s look at H&M’s marketing mix last but not least.

Product: 

Six unique brands have been introduced to the market by H&M. These companies employ various pricing methods and appeal to multiple client categories. Each brand in its line-up is distinctive and has something unique to offer.

H&M is the flagship brand of H&M, offering high-quality, environmentally friendly clothing at costs that are within most people’s reach. This business also creates timeless classics that people can wear year after year in addition to the most recent trends. It produces many goods, such as athletic clothing, intimates, cosmetics, accessories, and footwear.

Additionally, H&M provides furnishings and fabrics for the house. This product line is often updated and revised. H&M introduced its H&M beauty brand of cosmetics in 2015. It offers both cosmetics and beauty items.

It caters to the feminine and male client segments, among others. It offers a massive selection of women’s shoes, purses, jewellery, cosmetics, and other stylish accessories. Aside from these, it provides a wide variety of style options, from subtle femininity to tailored menswear. & Other Tales, introduced in 2013, is sold in 13 regions through 30 storefronts and online.

This product line is often updated and revised. H&M introduced its H&M beauty brand of cosmetics in 2015. It offers both cosmetics and beauty items.

It caters to the feminine and male client segments, among others. It offers a massive selection of women’s shoes, purses, jewellery, cosmetics, and other stylish accessories. Aside from these, it provides a wide variety of style options, from subtle femininity to tailored menswear. & Other shops, introduced in 2013, is sold in 13 regions through 30 storefronts and online.

In addition to serving the requirements of both sexes, Cheap Monday is influenced by young subway cultures and street fashion when it comes to fashion and style. The present denim trend is at the centre of it, complementing a wide selection of apparel and accessories offered at low costs.

Over 35 markets and 2000 merchants participate in the brand’s product sales. COS: COS has 153 physical locations and 19 online marketplaces.

This clothing line offers services for both men and women. It shows things that are both contemporary in design and timeless in terms of style. These fashions resist becoming quickly out of date. The company is well renowned for emphasizing quality in its operations. 

Monki: Although Monki sells styles for all ages, it caters to young ladies. Its items draw inspiration from current trends while incorporating elements of Scandinavian and Asian street styles.

Weekday: It is a contemporary clothing line that offers designs worldwide. Weekday provides a selection of designs from outside designers in addition to its in-house brands.

Place:

Since its founding, H&M has seen significant growth. The brand experienced a busy year in 2016, thanks to the addition of 427 new outlets to its network. Additionally, it expanded H&M’s online business to 11 additional markets and added three new retail markets.

H&M has utilized an omnichannel approach, expanding its presence through both online and offline channels. H&M’s expanding footprint has given the company new options and unlocked doors to increased growth and income. With 4300 outlets, it has a distinctive portfolio that puts it close to the public.

With its 4351 shops and online presence in 35 countries, the brand is active in 64 markets. H&M has continued expanding its global network and plans to do much more.

Price: 

Compared to Zara, H&M has taken a different approach to price. Zara has concentrated chiefly on offering reasonable prices, but H&M has taken a somewhat different approach. It provides fashion and style for upper-class clients and serves the middle class.

Cheap Monday and its flagship brand H&M provide reasonably priced fashion items. To appeal to all client categories, including higher and lower-middle-class consumers, the other companies likewise offer a variety of designs and styles at various price points.

Promotion: 

There have been significant changes in how brands promote themselves and their goods in the twenty-first century. H&M has also put a lot of effort into its internet marketing. For improved marketing and sales, H&M merged digital and physical stores so customers could have a smooth purchasing experience. Its digitization plan includes:

• Click-and-collect.
• Mobile payments.
• The development of the customer club.
• The use of mobile devices in shops for improved customer service.

It also includes online sales and returns in stores. The brand has also made excellent use of digital marketing tools. H&M uses social media for marketing and advertising in addition to its websites, which it uses to service its clients in 35 different countries. It has more than 32 million fans on Facebook.

The company advertises its events and products on Facebook. In addition, it has promoted its brands and goods on Twitter. It has utilized many Twitter accounts for various markets, including H&M USA, H&M UK, and others. In a subsequent piece, we’ll examine H&M’s social media approach in more detail.

But one thing is sure: the company has made a hard drive toward digitalization, which is prominently included in its marketing plan, just as customers are moving toward the internet.

We were able to examine H&M’s marketing segmentation thoroughly. We also discover some background information on the business and the Conscious Progressives Brand Archetype it represents. Based on that, we imagined potential clients. We learned much about H&M’s marketing mix and how it influences its marketing strategy. We can thus confidently assert that H&M deserves to be as well-known and wealthy as it is.

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