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Founder wanted to make great fashion available and affordable to everyone.

1947, Erling Persson Swedish entrepreneur opens womenswear store called Hennes. Swedish for her.

1968 began offering menswear

Launched in the UK in 60s

1974 rebrand to H&M

1977 launched for teenagers

1998 begins offering online shopping. Sweden first.

2002 publish first CSR report. Marking beginning of sustainability journey

2004 Karl Largerfeld collab

2010 first collection made entirely with sustainable materials

2013 enters high fashion. First H&M studio show at PFW. Begin garment collecting

2025 present in more than 75 markets worldwide, 60 offer online.

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Our founder had a vision. Erling Persson wanted to make great fashion available and affordable to everyone and do this in the right way. From a single store in 1947 we became a family of brands offering fashion and design to customers worldwide. This is our story.

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2016-2018

UK net sales £1.048B. Sales growth was minimal

H&M UK market share remained stagnant at 2.4%

Milton Keynes distribution centre first omni channel hub in UK, commence operations in 2019 to enhance supply chain and support stores and online.

https://hmgroup.com/wp-content/uploads/2020/09/2371044.pdf

Annual report 2018

57% materials used were recycled, up from 35% in 2017

95% of cotton came from sustainable sources. Significant increase from 2017

https://hmgroup.com/wp-content/uploads/2020/09/Annual-Report-2018.pdf

Sustainability report 2018

Achieved an 11% reduction in CO2 emissions

Set a target to reduce greenhouse gases in its own operations by 40% by 2030. Aiming to become climate positive by 2040

Developed a water roadmap with WWF to reduce water usage by 25% in production by 2022.

All packaging to be made from 100% recycled or sustainable materials by 2030

Take care initiative expanded

Made supplier list customer facing

https://hmgroup.com/wp-content/uploads/2020/09/HM_Group_SustainabilityReport_2018_-FullReport.pdf

Annual Report 2019

Global sales rose by 11% but UK saw steady performance due to Brexit

Plan to streamline and modernise stores

UK consumers liked conscious collection

Sustainability report 2019

57% of all materials were recycled or sustainably sourced, progressing towards the goal of 100% by 2030.

H&M Group explored new circular business models, including on-demand production, customization, repair services, rental, resale platforms, and reusable packaging

The company collected 29,005 tonnes of garments for reuse or recycling, a 40% increase from 2018

Annual report 2020

23% decline in sales due to COVID

16 store closures

The company intensified its work for inclusion and diversity, supporting various initiatives and partnerships to promote equality.

With up to 80% of stores closed during peak lockdowns, H&M accelerated its digital transformation, focusing on enhancing online sales channels to meet customer demand.

Sustainability report 2020

The company set a new target to use 30% recycled materials by 2025H&M Group ranked third in the 2020 Sustainable Cotton Ranking, reflecting its commitment to responsible sourcingH&M Group achieved the highest possible scores for human rights, environmental reporting, social reporting, and materiality in the Dow Jones Sustainability Index

Annual & Sustainability report 2021

n 2021, H&M's net sales in the UK amounted to SEK 11.3 billion, a slight decrease from SEK 11.5 billion in 2020. This reflects the ongoing challenges posed by the COVID-19 pandemic

Closed 20 more stores

he company expanded services like click-and-collect and in-store returns for online purchases, providing greater flexibility and convenience for UK shoppers

By the end of 2021, 80% of H&M Group's materials were either recycled or sourced in a more sustainable way

H&M introduced its "Circulator" design tool to support circular product development, aiming to have all products designed for circularity by 2025.

Annual & Sustainability report 2022

H&M's UK sales increased by 19% year-over-year, reaching £996 million in the fiscal year

Retail sales rose by 23% to £753 million, indicating a strong recovery post-pandemic

global strategy to integrate physical and digital retail experiences

mobile app enhancements were expanded to provide greater convenience to UK shoppers.

H&M Group launched a new 2030 water strategy and reduced relative water consumption per product by 38% compared to the 2017 baseline through efficiency improvements and increased wastewater recycling.

Annual & Sustainability 2023

H&M experienced moderate sales growth in the UK

Operating costs rose due to inflationary pressure in the UK retail market, prompting tighter cost control measures.

A continued shift toward fewer but higher-performing stores, with a greater emphasis on experiential retail in flagship locations like London.

UK online sales rose further as digital became the dominant sales channel, boosted by app personalization and faster fulfilment.

Annual & Sustainability 2024

UK remains one of H&M's key markets

H&M Group's net sales for the fiscal year 2024 amounted to SEK 234.5 billion, reflecting a 1% increase in local currencies.

In 2024, 89% of H&M Group's materials were either recycled or sustainably sourced, with recycled materials accounting for 29.5%. This progress brings the company closer to its goal of 100% sustainable materials by 2030

H&M reduced plastic packaging by 54% from the 2018 baseline, surpassing its 2025 target ahead of schedule.

My final opinions

H&M were a pioneer in the fashion space, they were first to hop on sustainability initiates and many brands used them as an example however they did suffer from the pandemic and had to alter their strategy ever since. They have prioritised technology and app efficiency which led to closure of physical stores. Nowadays, they are focusing on big flagships like London to implement more experimental features. This sparks an idea for my strategy to focus on bringing people back to store rather than online sales dominating.

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M&S, GAP, Next - From Global Data

https://www.globaldata.com/company-profile/h-m-hennes-mauritz-ab/competitors/

Zara, ASOS, Urban Outfitters, Uniqlo, Mango - From SimilarWeb

https://www.similarweb.com/website/hm.com/competitors/

My final opinions

I plan to conduct primary research amongst Gen-Z to find out who they consider H&M's competitors as this is who the brand aim to focus. Finding out where else this generation shop is key.

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In 2024, H&M hosted a party during London FW and invited Charlie XCX to perform wearing something from their latest studio collection and it was a big success for the brand.

Source

https://www.vogue.co.uk/article/charli-xcx-london-fashion-week-gig-h-and-m

H&M have launched an event series in Sep 2024, which includes some interesting store takeovers by photographers etc however these all seem to be in stores across the world not many in London.

Since 2024, only 2 events have been in LDN.

H&M embarked on a strategic plan to elevate their brand experience and reignite their fashion DNA across various touchpoints, including in-store, online, and through a large-scale global event series celebrating fashion and music

With this event series, H&M aimed to engage and resonate with younger, fashion-forward customers by creating memorable moments that showcased H&M’s design prowes

Results of H&M event series

Events highlighted the power of social media and experiential marketing in amplifying brand awareness and consideration.

Featured in tons of press, Vogue, WWD, Harper’s Bazaar, NYLON, Paper Magazine, Glossy, Ad Age, People, V Magazine, Cosmopolitan, Marie Claire

Charlix xcx, Amelia Gray, Kaytranada, Emily Ratajkowski, Julia Fox, Alex Consani, Hari Nef, Lucky Blue and Nara Smith, Riley Keough, Irina Shayk, Lila Moss, Iris Law, Shay Mitchel all dressed in H&M.

Source

https://www.dazeddigital.com/hm-event-series

Overall, this strategy worked for the brand however there is opportunity to bring more of these events to LDN.

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Charli XCX’s H&M Gig Was The No-Holds-Barred Party London Has Been Craving

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Charli, who said H&M has been “so down to really let me do exactly what I want”, delivered the kind of give-a-sh*t gig that, judging by every journalist spilling their vodka spritzes, London was craving.

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Kensington store

Mannequins were styled nicely however the outfits where not placed nearby.

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Kensington store

Sportswear section in store, organised well and a variety of sizes available. Could have clear signage and more imagery.

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Kensington store

Sale section of store poorly organised, not visually pleasing and no signage.

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Kensington store

Mannequins dressed very stylish, evidently aimed at a younger customer.

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Kensington store

Overall, store was very bright with little to no signage nor imagery. Very difficult to find sports section, kids, accessories etc.

Not much ambience in store.

Shoes and accessories were neatly placed around store.

Entered the store around 4pm on a Tuesday, couldn't see many staff around to ask for assistance if need be.

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I carried out a SWOT analysis on H&M as a brand and from this research I have identified the 2 areas I'd like to research more as this is what I might base my marketing strategy upon (H&M stores and Brand Collaborations).

Therefore, I will create 2 more SWOT's focusing on each of those components of the brand in the UK.

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The PESTLE analysis has informed me that when writing my new marketing strategy for the brand I must make note of any political factors that may effect the UK such as Brexit, the cost of raw materials and energy is increasing so their marketing budget may be less than before, consumer attitudes and behaviours are changing and this strategy must tailor in those changes. There is room for improvement within Technology in the brand and marketing strategy. The strategy must include some environmental changes the brand intends to take as this in a growing issue in the external environment for retailers.

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After beginning my secondary research on H&M, looking into the brands performance, a store visit, content analysis and beginning to look at the external environment. I have identified 2 areas the brand is lacking and believe there is room for opportunity. These areas will be brand collaborations and technology. H&M have had a variety of successful collaborations which many of their competitors cannot compete with. Utilising this in the marketing strategy would be playing on the brands strengths. I want to focus on technology because the research I carried out identified since COVID H&M have been prioritising their use of tech innovation. By introducing new tech innovations in the marketing strategy will help stand them out of their competition such as Zara.

So now going forward, I will continue to carry out secondary and primary research focusing brand collaborations and tech.

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A total of 24 collaborations since their first one with Karl Largerfield in 2004.

Designers include, Isabel Marrant, Mugler, Jimmy Choo and Kenzo.

Source

https://about.hm.com/content/hmabout/groupsite/en/news/general-news-2024/h-m-celebrates-20-years-of-iconic-guest-designer-collaborations-.html

A limitation/restriction that has been picked up on is the luxury brand tarnishing its reputation partnering with a High street brand. Including the fact that the range is limited in its number of products and the collaboration is usually a one-time thing, both brands are able to create a certain type of exclusivity.

Source

https://culted.com/do-hm-designer-collaborations-show-the-true-price-of-luxury/

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H&M Celebrates 20 Years of Iconic Guest Designer Collaborations with Limited Re-releases of Pre-Loved Pieces

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H &M launched its first designer collection with Karl Lagerfeld, then creative director of Chanel, in 2004. The initiative revolutionised the fashion industry by making the work of the world’s greatest designers and brands accessible, expanding the profile of some of fashion’s greatest creators, and cementing the principle that great design transcends price. Each collaboration has been unique, responding to the values and principles of the guest designer.

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H&M finally has a plan for capturing the market share it has lost in recent years: upgrade its shopping experience, and compete on value on a wide range of prices.

This new strategy, implemented by chief executive Daniel Ervér, will be reflected in H&M’s upcoming fall collection, which hits stores Sept. 12.

The retailer plans to complete renovations on 250 stores this year, and host a series of pop-ups and other activations in key markets.

To better showcase those clothes, the retailer plans to complete renovations on 250 of its 4,000-some stores this year. A series of pop-ups in major cities and a website redesign are also in the works.

The goal, ultimately, is for customers to rediscover H&M as a compelling fashion brand, rather than trying to win the race to the bottom on price

Between 2019 and 2023, sales were virtually flat, at about $23 billion last year. In that same period, Inditex, which owns Zara, saw sales expand by 27 percent, to roughly $40 billion last year.

The decision now to embrace a middle-of-the-market value proposition is a risky one, analysts say. But there are potential upsides.

The product development cycle hasn’t changed radically, but the company has eliminated some layers of management to yield faster decision making.

The design team has also been equipped with supply chain improvements, including more options for product materials

The retailer has also increased local manufacturing capabilities to improve its ability to chase trends

&M’s lead time can be as short as six weeks for some products — on par with that of Zara. But the bulk of its production is still in Asia, where products are shipped out via sea rather than air freight

he ability for them to be truly responsive [to trends] is still difficult

The new store format features updated fitting rooms and sleek fixtures that elevate the shopping experience, creating a boutique-like environment with fewer racks and more open space. Some stores will feature rental services or a selection of pre-owned goods

H&M will also be implementing RFID, or radio frequency identification, in an increasing number of stores to allow for better inventory visibility and more efficient product replenishment

Source: https://www.businessoffashion.com/articles/retail/hms-big-bet-on-fashions-elusive-middle/

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Consumers’ purchase decisions are shaped by psychological, personal, social, and economic factors. Variables such as demographics, season, time of day, promotional offers, and convenience play a role. Gen Z and Millennials, in particular, place more emphasis on ethics and sustainability

Shoppers at H&M are either habitual or variety seeking.

Habitual = Routine, low involvement purchases, maintain stock consistency to meet these shoppers

Variety seeking = Low risk, novelty driven buying, rotate new items frequently to meet these.

Positive experiences build trust, emotional connection, loyalty, spending, and word-of-mouth. Negative experiences can limit purchases and generate negative reviews.

Notes for H&M

Tailor experience by shopper type (Habitual or variety seekers)

Enhance awareness in store with visuals and process of paying

Elevate customer experience, store navigation is good

Source: https://www.gmg.com/understanding-customer-buying-behaviour-in-retailing/

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This traditional proverb signifies the importance of empathy and perspective. At GMG, we understand that each of the divisions we work in requires special attention and care. So, when we step into the consumer's journey as Retailers, we can better anticipate needs and tailor our strategies to support retailers and meet market demands.

The dynamism of the retail landscape, of course, makes everything fast-paced and requires us to understand these behaviours to meet the ever-evolving demands of consumers. We are also witnessing a new era of more data-driven consumption. Therefore, tracking and analysing customer behaviour enables companies like us to optimise their strategies and cater to them more effectively. Below, we explore customer buying behaviour from a company's perspective, examining buying patterns, decision stages, data-gathering methods, and ways to leverage insights for business growth.

Customer buying behaviour in retailing: an up-close look

Let's look at customer behaviour in more detail.

Our shopping behaviour is shaped by various factors, including psychological drivers, personal preferences, social influences, and economic conditions. From a business perspective, understanding these factors provides insight into how best to support retailers with products that align with customer expectations, particularly in terms of pricing, packaging, product quality, and availability.

It's important to acknowledge that buying behaviour can be impacted through a variety of variables. Some examples include the demographic, season, and even the time of day. A customer's path to purchase-whether in-store or online-can be complicated and often influenced by promotions, trends, and convenience. We can take a look at Millennial and Gen Z consumers as an example. They may prioritise brand ethics and sustainability over other factors. This will, of course, impact their buying decisions. Then, in comparison, we could see that previous generations have a higher value on brand loyalty and price sensitivity.

Customer's buying behaviour patterns

Buying behaviour can be broken down into four main types of patterns. The following matrix provides a quick summary of how they work.

Let's start with 'Complex Buying Behaviour'. This occurs when customers are making significant, high-involvement purchases and may need to extensively research and evaluate different options. For distributors like us, this behaviour signals an opportunity to emphasise detailed product information and highlight features that set their products apart from competitors.

Next, there is 'Dissonance-Reducing Buying Behaviour', where customers have a small level of anxiety surrounding their purchase choice. This is quite often due to high stakes (like cost), but this occurs without a strong difference between brands. In these cases, we can support retailers by ensuring customers have access to post-purchase resources, such as guarantees or customer service support, to minimise regret.

'Habitual Buying Behaviour' can be seen when customers make low-involvement, routine purchases. These products are ones that customers usually buy out of habit and are often part of an established routine. This makes consistent availability and visibility essential. Businesses can assist by maintaining a steady supply of these products to avoid disrupting customers' buying patterns.

Customers who enjoy trying new brands or products for the sake of novelty, typically with low-risk items like snacks or personal care products, exhibit the 'Variety-Seeking Buying Behaviour'. Do you consistently like to try new brands of chocolates? Or do you enjoy experiencing the same types of products but from different stores? Retailers can cater to this pattern by introducing new or seasonal products and by encouraging retailers to rotate inventory options to keep customers interested.

Customer buying stages and related behaviours

We can look at the buying journey in several stages, each marked by distinct behaviours and needs. Companies who understand these phases can better align their offerings with the shopper's journey:

Awareness: Clear branding and promotional materials can effectively capture the consumer's attention, especially for new or seasonal products like during Ramadan.

Consideration: This is when consumers look at the available options. At this point, it's common to have concerns about pricing, product reviews, or recommendations. We can help consumers by providing comprehensive product information, competitive pricing, and perhaps even samples for trial use.

Decision: This is where a customer chooses a product and finally makes the decision to complete the purchase. We can help facilitate this decision by providing smooth product accessibility and availability, whether in-store or online.

Post-Purchase Behaviour: One of the key stages in creating product champions and community is aftercare. It's not just about buying a product. It's common to evaluate your decision after a purchase. Gathering feedback and ensuring quality control will help encourage repeat purchases and build loyalty.

How customer experiences shape the buying behaviour of consumers

Crucially, any retailer trying to stay competitive in today's market must understand customer buying behaviour. Factors such as price, product quality, and brand reputation often influence purchasing decisions but one aspect, frequently overlooked, is customer experience.

Retailers must recognise that customer experience is not just a "nice-to-have" but a strategic driver of buying behaviour. Let's explore how experiences impact buying behavior, and how retailers can leverage this insight to improve sales and customer loyalty.

The Role of Customer Experience in Buying Behavior

When referring to customer experience (CX), we observe the total journey that consumers will navigate. This includes everything from browsing your website to engaging with your staff, from exploring your physical store, all the way to after-sales support. Everything has an impact on CX. The overall perception a customer has of your brand is based on their interactions across these various touchpoints.

Providing a positive experience can foster trust, increase spending, and encourage repeat purchases. On the other hand, poor experiences can lead to dissatisfaction, lost sales, and even negative reviews that deter future customers.

Linking CX to Buying Patterns

1. An emotional connection can foster loyalty
Customers are more likely to buy from brands that make them feel valued and understood. For example, personalised recommendations based on past purchases or preferences create a sense of connection that encourages loyalty and repeat purchases. This shows that brands value what an end-user needs whilst providing a portfolio to match. Sharing stories behind products makes the retailer-customer relationship less distant, making them part of the family. #GMG1family

2. Seamless Interactions Boost Confidence
As mentioned, a smoother and hassle-free journey-from browsing to checkout-can positively influence buying behaviour. Long wait times, confusing navigation, or unhelpful staff can frustrate customers, causing them to abandon purchases or seek alternatives.

3. Word of Mouth & Social Proof
One of the most understated marketing tool, is word of mouth. Exceptional experiences often lead to positive conversations around a company which heavily influences the buying decisions of others. Retailers who delight their customers, create advocates who spread the word, impacting the buying patterns of new prospects.

4. Post-Purchase Support Reinforces Decisions
How you handle returns, refunds, or customer inquiries post-purchase can either strengthen a buyer's confidence in your brand or push them to competitors. Satisfied customers are more likely to purchase again and spend more over time.

How do we gather data on customer behaviour in retail?

We know that gathering data on customer behaviour is vital for making informed inventory and marketing decisions. Actionable data can be attained via a variety of methods.

It's quite common to observe sales data trends over a specific period of time to understand customer preferences. This type of analysis has been expanded to real-time insights such as basket size, cross-selling information, peak buying periods, and popular product categories.

Next, and perhaps the hardest to action, would be customer surveys and feedback forms. It is a very direct way of gathering feedback and data from customers. While it can be difficult to quantify data, it can provide interesting information.

With the world of retail becoming a combination of in-store and online experiences, the latter can also produce useful data. For online retail channels, website analytics, social media insights, and digital advertising performance data can even shape trends and purchasing behaviours. These insights support companies in understanding which products are attracting attention and which marketing messages are most effective.

Understanding customer buying behaviour in retail is a must. In order to stay competitive and responsive to market demands, observing choices is important. By closely monitoring consumer behaviour patterns, stages, and feedback, retailers can align their product offerings with customer preferences and collaborate more effectively with retail partners. Gathering and applying insights into buying behaviour allows companies to anticipate shifts, maintain strong relationships with retailers, and drive growth in an increasingly customer-centric market.

For retailers, the path to success in retail lies in becoming experts on the customer journey-not only to predict needs but also to meet them more effectively and ensure customer satisfaction through their retail partners.

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Understanding Customer Buying Behaviour in Retailing - GMG

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To understand the man, you must first walk a mile in his shoes. This traditional proverb signifies the importance of empathy and perspective. At GMG, we

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Maintaining a relationship with consumers even when they are not buying

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Maintaining a relationship with consumers even when they are not buying

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Brands need to think about, ‘What is my relationship with my customers and how do I keep this relationship going long term even if they’re not buying

Money that might have gone toward wide-reaching print ads can more effectively be put to use enticing shoppers with in-person events, buzzy collaborations and improvements to the retail experience online and in stores.

People won’t stop spending but they’ll be smarter in their purchases and they want to know what they’re buying and who they’re supporting when they’re buying it.”

Invest in Service

Services like loyalty programmes, free styling and and fun mobile apps can keep a brand front of mind when consumers are ready to splurge again.

Brands and retailers should look to their stores in order to add value to the customer experience rather than as an arena of cost-cutting

Smaller — and cheaper — marketing initiatives could be more effective in these times, brand operators say.

Social media content created through these activations can then serve as brand marketing material, no photoshoot or big creative production needed

Source = https://www.businessoffashion.com/articles/retail/consumer-slowdown-brands-retail-tactics/

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The US economy grew by a sterling 4.9 percent in the third quarter, but many young consumers are convinced they're living in what TikTok has dubbed the "silent depression."

It's more than just a Gen-Z catchphrase: For the past two years, the US economy was buoyed by strong spending despite mounting inflation and rising costs of borrowing. But slower growth in sales from Black Friday and a cascade of retailers slashing their sales targets in recent earnings are signs that a cooldown is underway. Or as the social media posts put it: How are people affording life right now?

Fashion businesses are shifting their approach to marketing and customer service to appeal to the anxious consumer.

"When times are tough, there is always a question of who will stay and who will go away," said Ana Andjelic, a marketing strategist and chief brand officer at Esprit. "But what we're talking about is a relationship: Brands need to think about, 'What is my relationship with my customers and how do I keep this relationship going long term even if they're not buying?'"

In other words, even if shoppers are spending less on fashion and accessories, it's still crucial for brands to stay relevant in their lives. Sometimes, that means a little personal attention: Money that might have gone toward wide-reaching print ads can more effectively be put to use enticing shoppers with in-person events, buzzy collaborations and improvements to the retail experience online and in stores.

Essx, a boutique that opened in New York last summer, regularly hosts parties that connect shoppers with their favourite emerging designers.

"[Our shoppers] are not buying something just to buy it - they want to know everything about it," said Laura Baker, co-founder and retail director of Essx. "People won't stop spending but they'll be smarter in their purchases and they want to know what they're buying and who they're supporting when they're buying it."

Invest in Service

Services like loyalty programmes, free styling and and fun mobile apps can keep a brand front of mind when consumers are ready to splurge again.

Jewellery brand Mejuri launched a mobile app and a loyalty programme in September, granting users access to exclusive products and a personalised shopping experience. The company will be adding new features to its app next year, according to Majed Masad, Mejuri co-founder and president, including improvements to its styling service and integrations between e-commerce and Mejuri stores.

"We just want to make sure that when [shoppers] are ready and they have that buying intent, that they remember Mejuri and that our brand added value and was great to interact with," said Masad.

Brands and retailers should look to their stores in order to add value to the customer experience rather than as an arena of cost-cutting, according to Ron Thurston, former retail executive at Intermix and host of the podcast, "Retail in America."

In stores that struggle with conversion, for example, the retail manager could host product knowledge training sessions or empower associates to play a stylist role to shoppers. A closer analysis of store performance allows merchandisers to shift products from store-to-store in order to reach full-price shoppers at one location that another might not attract.

Retailers like H&M and Zara, for example, closed underperforming stores in recent years, but redirected those savings toward sprucing up some of their highest-profile locations. H&M's renovated store on London's Regent Street now houses a mini beauty salon and clothing rentals.

"If [sales] are in question and the customer experience is bad, that's just a double down on customers not spending," Thurston said.

Small-Scale Marketing

When shoppers are feeling blue, a ubiquitous ad campaign featuring the usual sleek products and impossibly glamorous models won't resonate. In the worst case scenario, it could even come off as tone-deaf.

Smaller - and cheaper - marketing initiatives could be more effective in these times, brand operators say.

Esprit will lean into influencer partnerships and event sponsorships in lieu of digital or print ads. Social media content created through these activations can then serve as brand marketing material, no photoshoot or big creative production needed, said Andjelic.

The brand recently worked with photographer Kat Irlin on a series of ads and featured her as a brand ambassador, highlighting Irlin's images as well as an interview with her on Esprit's website and Instagram page.

"We're focused on more grassroots efforts, partnering with people and events that allow us to create our own intellectual property," said Andjelic. "In 2024, our approach would be [to shift] away from print and mass media and toward strategic out-of-home ... and amplifying our own content and events through sponsored content."

Niche cultural tie-ups or sponsorships are also effective in driving conversation. Earlier this year, Mejuri partnered with the US national women's soccer team ahead of the World Cup, as well as with New York-based label Luar, whose following may be far smaller than Mejuri's existing customer base but grants the brand bona fide fashion credibility.

"If we reduce marketing dollars, we might reduce it on performance marketing but invest it more into brand elevating initiatives and things that get us closer to our community," said Masad. "There's always going to be competition or macroeconomic pressures. We want to engage in conversations and be relevant."

In 2024, Esprit will be an official sponsor of Copenhagen Fashion Week and host an event exhibiting artwork from local emerging artists - a concept that it will repeat in New York City in March.

Meet the Customer on Their Terms

At Essx, the average shopper tends to be young and therefore is more vulnerable to economic pressures. To that end, its customers are very mindful and deliberate in their spending, according toBaker.

Even in a consumer slowdown, it's possible to generate a sense of demand, or at least identify the type of customer who's still spending and targeting them directly. For Essx, this means throwing parties for its emerging brands and inviting shoppers to interact with the founders and designers.

Last month, Essx hosted events with streetwear brand 424 as well as with rapper Lil Uzi Vert. Cost-wise, events are not a heavy lift, Baker said, because the alcohol is typically sponsored and the brands contribute to the cost for the decorative build-outs.

For beauty brand Superegg, finding the customer who's still willing to splurge on skincare means signing spas as retail partners. As of late last year, Superegg can be found at facial treatment chain Formula Fig in Los Angeles, Toronto and Vancouver.

Superegg is in a unique position to benefit from the consumer pullback, said founder Erica Choi, because as shoppers cut back on handbag or ready-to-wear purchases, some will seek out luxury skincare and wellness treatments as the more affordable consolation prize.

"There are people who are cutting back completely, but there are also people who are now focused on wellness and are willing to spend money on it," said Choi. "If we message them the right way and show up where they are, we can go after the right customer."

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How to Reach Shoppers When They're Not in the Mood to Shop

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As savings dwindle and credit card debt soars, the American consumer's famed resilience is starting to show some cracks. Brands and retailers would be wise to take a more sensitive approach to courting them.

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Over 40 percent of shoppers in the US, UK and Germany are spending less on clothing, footwear and accessories than they did a year ago.

Over 60 percent of consumers in the US and UK say they are attempting to save money on fashion “often” or “as much as possible.”

Over 80 percent of shoppers plan to spend the same or less on clothing, footwear and accessories in 2025.

Identify the “value proposition” that resonates with customers, whether rooted in quality or affordable prices.

Source = https://www.businessoffashion.com/user/document-viewer/?payload=eyJjdGFMaW5rIjoiaHR0cHM6Ly9jZC5idXNpbmVzc29mZmFzaGlvbi5jb20vcmVwb3J0cy9UaGVfU3RhdGVfb2ZfRmFzaGlvbl8yMDI1LnBkZiIsImFydGljbGVJZCI6Ikw1UURLVEVMNlZHVURNQ1RPUUdHSkxRUllZIiwiYXJ0aWNsZVVybCI6Ii9yZXBvcnRzL25ld3MtYW5hbHlzaXMvdGhlLXN0YXRlLW9mLWZhc2hpb24tMjAyNS1ib2YtbWNraW5zZXktcmVwb3J0LyIsInNpZ25lZCI6ZmFsc2UsInVzZXJJZCI6IjEwODEzNDQ2NzUyMDcifQ==

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Zara excels by pulling customers into the brand, unlike its closest competitor H&M, which remains fixed on pushing its brand and product out to the customer.

Zara has evolved to the new 4Es of marketing strategy—Experience replaces Product; Exchange is new Price; Evangelism is now Promotion; and Every Place is new Place—that puts the customer at the center around which the company and brand revolve

In the new retail economy, experience matters more than product in the mind of the shopper. Zara understands this.

Zara has cultivated a loyal customer who visits about six times per year, as compared to other retailers in the contemporary market where two to three visits per year are the norm.

it is not the cheapest in the fast-fashion arena, but it consistently delivers branded value of trend-right product at appealing prices.

Shopper frequency at Zara is 2x to 3x higher than traditional women’s apparel, which indicates super loyalty to the brand,

The flagship locations are located in the most critical markets that appeal to their most loyal shopper

Source = https://www.forbes.com/sites/pamdanziger/2018/04/23/zaras-difference-pull-people-in-not-push-product-out/

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Spain-based Zara, the world's largest clothing retailer and owned by Inditex, is introducing an augmented reality experience in its stores. Shoppers can engage their mobile phones to see models wearing selected fashions when they click on sensors in the store or displayed on AR-enabled shop windows. Initially launched in 120 stores worldwide, such technology is irresistible digital-honey to draw millennials into the store and shop.

Creating customer curiosity is a most powerful pull marketing strategy. Every human being is innately programmed to satisfy it. With this new AR application and in so many other ways, Zara excels by pulling customers into the brand, unlike its closest competitor H&M, which remains fixed on pushing its brand and product out to the customer.

In studying these two oft-compared brands, the essential differences revolve around their overall approach to marketing. H&M still is fixed on the old 4Ps of marketing model-Product, Price, Promotion and Place-where the company and the brand is the focus.

By contrast Zara has evolved to the new 4Es of marketing strategy-Experience replaces Product; Exchange is new Price; Evangelism is now Promotion; and Every Place is new Place-that puts the customer at the center around which the company and brand revolve.

For Zara, it is all about the customer-experiences for the customer, exchange with the customer, Evangelism through the customer, and being every place for the customer. Shelley E. Kohan, assistant professor Fashion Institute of Technology, recently shared an analysis of the Zara difference based upon the 4Es marketing concept.
Zara makes customer experience king
Product used to be king, but not anymore. In the new retail economy, experience matters more than product in the mind of the shopper. Zara understands this.

"While Zara is an excellent purveyor of product, it also capitalizes on the store experience by continuously offering reasons for customers to visit the stores and catch the hottest trends at affordable prices," Kohan explains, noting that Zara has cultivated a loyal customer who visits about six times per year, as compared to other retailers in the contemporary market where two to three visits per year are the norm.

The fast-fashion experience formula for success combines frictionless shopping in a highly curated product environment offering scarce supply and new styles that rotate rapidly. "The more quickly and efficiently a customer can navigate through the store to explore and find hidden gems, the better the experience," she says. "Zara nails that."
Zara exchanges with customers for value
The old pricing formula-Pile it high, sell it cheap-worked well through the 20th century, but in the new experience economy, it has been replaced by the concept of exchange.

"Exchanging dollars for product is no longer meeting the needs of today's shopper as they strive for deeper connections with the brand," Kohan states. "Retailers must adapt to the changing consumer where the top characteristic is value. Today, value is measured beyond price, but also in time and convenience."

Zara has a deep understanding of the entire value proposition it exchanges with the customers. Its fast-fashion deliverable is available in the quantity, format and time in which the customer needs the product. That translates into great value.

"Branded value aligns customer's needs with a brand deliverable," Kohan stresses. For example, the most loyal customers for retailers typically account for 80% of the sales. These brand loyalists are also less price sensitive. "Appealing to the loyal segment of the target market, like Zara does, allows for higher profit margins and caters to customers who seek out branded value," she emphasizes.

Zara masters the concept of exchange as it is not the cheapest in the fast-fashion arena, but it consistently delivers branded value of trend-right product at appealing prices.
Zara creates brand evangelists
By making the brand experience meaningful and the exchange valuable, Zara taps the potential of its customers to evangelize the brand. Rather than push marketing out, Zara pulls customers in, cultivates them as brand influencers to improve operations, services and products and stimulates them to spread the word.

"Shopper frequency at Zara is 2x to 3x higher than traditional women's apparel, which indicates super loyalty to the brand," Kohan says. These loyalitsts become brand evangelists who share excitement about the brand with their networks. Zara, for example, has over 25 million Facebook followers, 16 million on Instagram and over one million in Twitter.

Zara has a highly evolved data infrastructure, Kohan also notes, that allows for super-efficient analysis of what's selling and being said on social media platforms. This data is used to improve various aspects of the business from product offerings to service enhancements. "The two-way communication between the customer and Zara allows for continual improvement of product and services," she says.
Zara is every place the customer needs it to be
Personal commerce is the every place where the customers are, rather than only in the physical place the brand is present. This is the new distribution model for retailers today: Delivering the brand experience and products when and where the customer demands it. Zara does that for them.

"Zara has devoted significant time, money and resources to develop a synchronized strategy between online and offline commerce," Kohan explains. Through this technology and mobile connectivity, it links a customer's shopping visit and provides access to inventory not present in the specific location. "It is a big win for both the customer and the company," she says.

And the company's store location strategy is another aspect of its every place factor. It currently operates in 2,213 stores across 93 markets and 39 online markets. The flagship locations are located in the most critical markets that appeal to their most loyal shopper. "Zara has the courage to continually strengthen their portfolio of stores by closing unprofitable ones, opening new markets, and expanding sister brands in existing markets (Zara Home, Massimo Dutti)," Kohan says.
Zara is all about the customer
Zara has cultivated unique advantages with its 4Es approach to marketing by focusing on experience, exchange, evangelism and every place strategies for the customer, rather than the old product, price, promotion and place concept focused on the brand. "As the brand ethos is so embedded in the customers' mind, the customer becomes the brand manager," Kohan explains.

In 2016, the service agents responded to more than 17 million customer inquiries, Kohan found. "Zara actually listens and reacts to customer feedback as its most valuable brand asset to improve its products and services, " she says.

Further, Zara focuses on its own people with corporate initiatives on diversity, respect, equal opportunity, work-life balance and professional development. Zara fosters a highly-engaged workforce that translates into highly-engaged interactions with customers. Additionally, over 60% of the Inditex workforce is 30 or younger thus aligning with the target market of the brand.

"The result is the customer and the company work cooperatively together so that the Zara customer becomes the Chief Customer Officer providing feedback on all aspects of the business," Kohan concludes. This is a fundamentally different alignment than brands using the 4Ps approach to marketing operate. Today the customer, not the company, calls the shots. Zara involves the customer interactively in the decision-making process. That is the Zara difference.

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Why Zara Succeeds: It Focuses On Pulling People In, Not Pushing Product Out

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Analysis of Zara's fast-fashion retailing strategy with FIT Shelley E. Kohan, based on the 4Es model of marketing, where Experience replaces Product, Exchange in new Price, Evangelism is now Promotion and Every Place is the new Place. Zara recognizes the customer as its most valuable brand asset.

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Experience - Product

Today going to the store is a choice, so shopping becomes the experience. Retailers need to restructure their offerings to lead with the experience. Retailers succeed in the experience economy not so much by what they sell, but howthey sell it

Exchange - Price

Exchange involves more than money in the till; it is the entire value experience a customer derives through the process of engaging with the retailer. Sephora succeeds because it expertly delivers expertise through makeup lessons and professional application.

Evangelism - Promotion

The highest mark of engagement is turning customers into store evangelists that will spread the message of your store. It’s activated through content marketing, social media, traditional public relations, influencer blog posts, and through good, old-fashioned word-of-mouth marketing. Apple is one of the most effective brands in turning its customers into evangelists.

Everyplace - Place

The concept of Everyplace includes the idea of allowing customers to engage with retailers on their own terms, through their own paths to purchase, whether it be online, in store, at home or by phone. Many retailers have embraced the idea of Everyplace by creating beautiful sites and mobile platforms to deliver seamless customer interaction.

Source - https://www.forbes.com/sites/pamdanziger/2017/07/25/retailers-need-new-tools-for-marketing-forget-the-4ps-embrace-the-4es/

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A recent Adobe Think Tank, a video streaming forum, entitled "The Future of Experience Business," began with a startling premise: "Marketing is an outdated practice, period."

The statement arose from a question about marketing's role in the experiential economy now that simply selling a product isn't enough anymore. "The customer doesn't want to buy a product from you, they want an engaging experience with the brand," said Nandini Nayak, managing director of design strategy at Fjord (Accenture). "The sum of the experience is the product."

All marketers are ultimately in the business of delivering an experience and product is only a part of that experience. Bringing that message home, Daniel Newman, Forbes contributor and CEO at Broadsuite said, "Every experience point is a marketing effort. Taken in that context, everyone in the company becomes a marketer."
What customers want may not be what retailers are selling
Everyone recognizes the fact that we've entered an experiences economy. But few retailers know how to navigate it successfully. Ethan Imboden, vice president of design and strategy firm Frog, made the call, "It's time to put forward and reformat marketing."

Here is the new format for retail marketing: Retailers have to replace the outmoded 4Ps model of marketing based on Product-Price-Promotion-Placement with the 4Es format of Experience-Exchange-Evangelism-Everyplace.

The old 4Ps ideas don't work anymore, which the reported retail apocalypse makes crystal clear. The 4Es are the guide for retailers to align with the experientially-driven mindset, expectations and needs of customers.

Education and training aside, one reason we cling to the old 4Ps of marketing is its simplicity. Following that need for a simple approach, Ogilvy & Mather's Brian Fetherstonhaugh developed this new 4Es formula. The secret is to use these 4E ideas to communicate and deliver meaningful value to the customer.

Let's drill down:

It's easy to understand how experience replaces product when you are selling experiences, like dining, travel or spas. But retailers continue to think they are in a product business. Not anymore. Retail is first and foremost a people business.

Product, good product, cheap product, is everywhere. When customers want a product experience, they simply have to go to their computers or cell phones. Today going to the store is a choice, so shopping becomes the experience. Retailers need to restructure their offerings to lead with the experience. Yes, customer service is important, but it takes more than that.

Retail success has been proven to hinge on two factors:

Amount of time shoppers spend in the store, where if a retailer increases the time spent in the store, their sales increase; and

Extent of interaction with the store personnel and merchandise, so the greater the shopper interaction and engagement, the higher the sales.

Retailers succeed in the experience economy not so much by what they sell, but how they sell it. Look at men's bespoke suiting company Knot Standard as an example. It started as an online e-tailer and has since expanded to include nine brick-and-mortar retail showrooms on two continents. Recently, Knot Standard entered the wholesale channel through a partnership with Bloomingdale's. It is a true omni-channel retailer exemplifying the best experience in every touchpoint with the customer.

Online Knot Standard uses videos to guide customers through the process including how to do fittings, take measurements and select fabrics, buttons, and other design details. For the man who wants the personal touch, he can schedule a visit in a showroom where he are greeted in a lobby with a bar and couches that make the customer feel like he has walked into a boutique hotel. The result is he feels more comfortable and is encouraged to stay longer and hang out with the stylists and other guests. And the new Knot Standard-Bloomingdale's partnership extends the brand's personal touch to an even wider audience.

Morty Singer, President & CEO of Marvin Traub Associates, which also invested in Knot Standard through its TRAUB Capital subsidiary, says, "Retail visionary Marvin Traub would talk about retail theater. Today, it's a fusion of retail and hospitality."

But perhaps Knot Standard's biggest claim to fame is figuring out how to offer a beautiful quality garment starting in the $500-$800 range, at least 40% more affordable than what most bespoke brands offer, thanks to technology that streamlines the entire manufacturing process. In that Knot Standard understands the next E - Exchange.

Retail thought-leader and Forbes contributor Robin Lewis has bemoaned the race to the bottom caused by retailers' reliance on price as a driver for engagement. Without doubt, price still matters, even among the affluent with discretion to spend. But for the highest potential customers, the absolute price takes a back seat to value, as they are perfectly willing, and able, to pay when real value is there.

Exchange involves more than money in the till; it is the entire value experience a customer derives through the process of engaging with the retailer. Part of the exchange can be respect for the customer's time, which is at a real premium today. It can be special insider knowledge or know-how that helps customers navigate their lives. Sephora succeeds because it expertly delivers expertise through makeup lessons and professional application.

Exchange can also be personalizing the product selection process, as Knot Standard does with its bespoke offering or Nike which trains its staff to match the customer with the right shoes or beauty retail Bluemercury which customizes its customers' skincare routines by recommending across brands, rather than the industry-standard vertical brand selections offered at department store beauty counters.

It can also be a pay-it-forward gift that is passed along, as Toms gives a pair of shoes to children in need for every pair of shoes bought, Warby Parker's 'buy-a-pair/give-a-pair' eyeglass offer or FEED bags which gives meals to the hungry in exchange for each bag sold.

Or it can be as simple as a meaningful thank you that makes the customer feel appreciated. Beekman 1802, the retail and product company founded by the Beekman Boys Brent Ridge and Josh Kilmer-Purcell, greets its Facebook followers every morning with a beautiful picture of the Beekman farm. It's a personal way of saying thank you to their "neighbors," what the company calls its customers. Ridge explains, "'Customer' says 'What you can do for me,' i.e. conduct a transaction and give me your money. 'Neighbor' says 'We are all in this together.'"

Exchange elevates the idea of price beyond the transactional into a real relationship with the customer.

By making the retail shopping experience personal and the exchange valuable, retailers can tap the potential of its customers to evangelize their experience of the store. The highest mark of engagement is turning customers into store evangelists that will spread the message of your store. It's activated through content marketing, social media, traditional public relations, influencer blog posts, and through good, old-fashioned word-of-mouth marketing.

That WOM is profoundly effective goes without question. In survey after survey of B2C and B2B companies, word-of-mouth is ranked among the most important marketing strategies. The Word of Mouth Marketing Association puts numbers to its impact: WOM drives 13 percent of sales, two-thirds of which is offline person-to-person talking and sharing and only one-third social media driven.

Apple is one of the most effective brands in turning its customers into evangelists. Outdoor brand Patagonia cemented its engagement with its brand loyalists in its "Don't Buy This Jacket" advertisement that encouraged its customers to think responsibly before buying new products. It underscored the brand's core value of quality and lifelong performance. It was such a remarkable program, it went viral with lots of people talking about it.

And Beekman 1802's daily exchange of life on the farm Facebook postings invite their neighbors into Josh and Brent's lives. And their neighbors pass those inspiring photos along, not in any strong-armed way to market Beekman 1802, but simply because the pictures are so remarkably beautiful. Ridge and Kilmer-Purcell reject the 'lifestyle brand' label, in favor of being a "living brand." And so the story of the Beekman 1802 living experience is spread.

The concept of Everyplace includes the idea of allowing customers to engage with retailers on their own terms, through their own paths to purchase, whether it be online, in store, at home or by phone. Many retailers have embraced the idea of Everyplace by creating beautiful sites and mobile platforms to deliver seamless customer interaction.

But Logan Rodriguez, Director of Retail at Square Root, warns that so much emphasis on technology-enhanced customer interaction can distract retailers from their primary goal of creating meaningful, memorable customer experiences that builds loyalty.

"It becomes a classic case of the snake eating its tail," he says. "Data shows that only about 8-12% of retail sales stem from online purchases. So while brick-and-mortar retailers are driving their customers online, their actual stores, where 90% of their business comes from, is becoming less profitable." Pushing customers to the online channel cuts back on the personal, one-on-one experience, in effect, "Giving shoppers no reason not to make future purchases online," Rodriguez says.

Everyplace doesn't have to be only via the Internet, with its many different platforms (mobile, tablet, computer) to support. It can be delivering the customer experience directly to the customer, face-to-face, person-to-person.

Take Lincoln Motor Cars, with its new Lincoln Concierge service which allows clients 24/7 personalized connection with its dealers including a pickup-and-delivery service to the owners' home or office whenever repairs are needed. It is all part of "The Lincoln Way" of delivering services and experiences to its customers; in other words, Lincoln has evolved into the 4Es way of marketing.

In conclusion, retailers need to abandon the old 4Ps of marketing model and evolve to the new 4Es approach where Experience, Exchange, Evangelism and Everyplace guides the customer interaction. The 4Es of marketing is essential to transform retail from a product to a people-based business. That is what your customers are looking for today

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Retailers Need New Tools For Marketing: Forget The 4Ps, Embrace The 4Es

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In the Experiential Economy, retailers must replace the outmoded 4Ps model of marketing with the 4Es where Experience replaces Product-Exchange is now Price-Evangelism is new Promotion-Everyplace is now Place. Retail has evolved from a product-based to people-based business. 4Es is the guide.

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After continuous research and 1-1s, I have decided to tailor my research to elevating the in store experience not so much brand collaborations. Primary research identified that Zara is their biggest competitor and I am going to compare the Zara in store experience to H&M and find ways to make H&M experience better than Zara's. I intend to look into what makes a store experience great and how to spark those emotions in shoppers to spend more time in store.

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After completing my research report I aim to build an AI stylist in the Oxford St store. The AI stylist will offer colour analysis and styling for events. Offering a luxury service like this will boost H&M's brand perception

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After receiving in depth helpful feedback from my report here is what I will ensure I implement in my strategy.

Ensure it's written as if I am presenting to the brand's internal team to help shape their 2026 strategy.

Translate research into meaningful insights.

If AI is important, explain why and how this could be integrated into H&M’s in-store or online experience.

How H&M could respond strategically to competitors using AI.

Add more to SWOT, focus more on synthesising the information into clear strategic insights. At times, the current points feel more descriptive than analytical.

Make SWOT more concise and impactful