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.

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.

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.

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

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

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

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

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.

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

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

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/

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.

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

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/

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/

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==

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/

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/

• 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