How Marriott Plans to Supercharge Growth Starting With 1,700 New Hotels in 3 Years. Lockdowns and quarantine in the event of another global pandemic in the future can interrupt the flow and reduce H&M’s sales and profits. Global Pandemic: The success of global companies like H&M depends on the uninterrupted flow of raw materials and finished products.As a Swedish company, H&M can be targeted by the UK in the aftermath of Brexit. Trade Tariffs: H&M outsources a large portion of its production from Asia, which makes a perfect target for tariffs.Increasing costs of operation and production threaten H&M’s profitability. Rising Operation Costs: Globally, profits for retailers are decreasing gradually with an increase in the cost of labor and raw materials.With the ever-increasing trade in fake products globally, profits from H&M’s premium designer brands can decrease in the future. Increase in Counterfeits: The fashion industry has the highest number of fake products.Competitors are all seeking to increase market share and reduce demand for H&M’s products. Intense Competition: H&M is facing stiff competition from new and old brands like Zara, Macy’s, Gap, Boohoo, and so on.As Europe and other regions slide into recession, fashion retailers like H&M will experience a sharp decline in sales and profits or can even go under.

Impending Recession: Even though clothing is a necessity, trendy designer clothes, footwear, and underwear are luxuries.

H&M closed its stores in the US in support of protesters and is also focused on helping communities affected by the pandemic in Bangladesh.

Community-Centered Approach: Taking the interest of communities at heart is an effective way to build a sustainable business.

H&M’s NextGen supply chain is highly efficient. Efficient Supply Chain: Global companies require an efficient supply chain to connect with suppliers and consumers more effectively.H&M has a strong online presence with a large audience across numerous platforms, which is funneled to drive sales via eCommerce Strong Online Channels: In the digital age, companies that adopt and exploit the internet more effectively have a huge advantage.In 2019, it was ranked the 58 th most valuable brand in the world. This has enabled the company to build a valuable brand. Valuable brand: Since its founding, H&M has adopted a customer-centric approach in the running of the business.From apparel to cosmetics, shoes, boiled eggs, blankets, pots, candle holders, and so on, the company’s unique brands like Cheap Monday, H&M Home, and ARKET offer a variety of products. Variety of Products: A wide variety of products attracts more consumers.The company strives to become the most sustainable fashion retail by exploiting the flexibility and cost-effectiveness of the fast fashion model to offer high-quality products at a cheaper price. Competitive Pricing: Price matters regardless of the product.From Europe to North America, Asia, Australia, Africa, and Latin America, the company’s global operation reduces risk and enhances sustainability and stability. Global Presence: H&M offers its products in 5,076 stores in 74 markets spread across all 6 continents.This strategy allows for the fast delivery of merchandise from the designer table to the showroom floor. H&M uses the fast fashion model that supplies designer tables with the latest fashion trends. Effective Strategy: Fashion retail business relies on effective of selling strategies for higher merchandise turnover.For one, the company’s fast-fashion strategy is a major advantage over competitors and has contributed to its success.įrom a single-store Swedish company over 65 years ago to a renowned fashion retailer with thousands of stores spread across 6 continents, we can learn a lot from the strengths and weaknesses of H&M and the opportunities and threats for the company. Hennes & Mauritz AB (H&M) is the second largest fashion retailer in the world for a reason.

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