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H&M is one of the progenitors of the fast fashion movement. H&M has deciphered the trick to provide fashion and affordability together. H&M provides the customers with runway trends at affordable prices. H&M is unique for its creative marketing strategies and fast production. It is one of the leading fashion brands with a global reach. The brand's secret to success involves different factors that separate the brand from others. These brands provide the brand with a competitive advantage in the business world. H&M's fast fashion brand became so successful in a few years. Their unique and out-of-the-box techniques have helped H&M in becoming a top name in the fast fashion industry.
H&M is one of the top names in the fast fashion industry. Their unique strategies have helped H&M in reaching such a prestigious position. In addition, the creative marketing strategies and unique business model enabled them to raise concerns about sustainable development. H&M is part of many movements to support this cause.
The Rise Of The Fast Fashion Giant, H&M
Erling Persson started H&M in 1947 when he opened his first store in Västerås, Sweden. Preston was inspired by high-volume stores like Neiman Marcus in the United States as he visited the country. His son Stefan, who took over in 1982, built a vast global supply chain, leveraging inexpensive factories in developing countries to create off-the-runway looks at low prices so that the customers could treat them as disposable. Karl-Johan Presson served as CEO from 2009 to 2019, growing the H&M empire from 2000 stores to nearly 5000 stores.
Fast fashion became the trend in the late 1990s and early 2000s. Today, H&M Group is a major player in the fashion industry. The brand generates $22 billion in revenue by selling 3 billion garments across its nine brands.
H&M Business Model And Fast Fashion
The fast-fashion strategy is among the top reasons why H&M is successful. Many companies have adopted fast fashion today, making it popular. Decades ago, it was not accepted. People had to save up for months to buy a fashion piece for special occasions. The trend changed as top fashion brands made runaway pieces available for affordable prices. H&M placed them to capitalize on this change. They catered mostly to the middle class. H&M had a simple business concept. The brand produced quality fashion at the best price. There are clothing pieces for women, men, and children in the latest fashion trends and designs.
The fast-fashion technique ensures daily shipments in over 60 different markets to the company stores. The daily collection of new merchandise attracts customers to the stores. H&M found success by collaborating. Since they started collaborating in 2004, the company hasn't looked back. The brand has even collaborated with luxury fashion houses luke Versace, Karl Lagerfeld, and Balmain. H&M understood that when high-end fashion met high-street prices, fashion enthusiasts went crazy. Further, the brand collaborated with Alexander Wang in 2014 and used celebrities like the Kardashian-Jenner clan for promotions.
The Effective Marketing Strategies
H&M tends to provide high-quality clothing according to the latest fashion at the best price. The company has four product stages. These are the introduction, growth, maturity, and decline stage, upon which the product manager analyzes the demand and supply of H&M products and adjusts these four stages of product life to bring effective marketing strategy on the new product. H&M clothes may be priced in all ranges from low to high. There is something in store for everyone. H&M has a unique promotion strategy that subsumes advertising, sales promotion, and internet promotion, helping the brand to be exposed globally.
Environmental Concerns And Initiatives
H&M started new initiatives recently, showing a company that is in the middle of reinventing its image. H&M's latest Conscious collection for fall/winter uses recycled polyester, wool, and a material called Econyl made from recycled plastics. In addition, the brand is strengthening the ongoing sustainable collection by introducing two new materials: recycled cashmere and recycled velvet. The recycled material strategy is gaining fame in the fashion industry. H&M looks forward to producing every product entirely from recycled materials by 2030.
Overall, H&M rose from nothing to one of the top names in the fast fashion business through a strategic approach and creative marketing ideas. There were many challenges in the early stage, but the company overcame those hurdles to grow into a brand. Their latest initiatives towards sustainable development are commendable. The use of recycled materials shows the company's concern for the planet. H&M had successfully placed itself in a position to benefit from the fast-fashion business long before It became a trend. Today H&M enjoys a superior position among fast fashion brands thanks to their out-of-the-box strategies.
Sources: Fast Company, 440 industries, Startup Talky, Glossy