• Age: Primarily 16-35 years old, with a mix of teenagers and older customers.

• Gender: Predominantly female shoppers.

• Income: Tends to have a mixture of income levels, due to them being a predominantly fast- fashion brand, it tends to attract people who are on lower incomes, but they do also have high earners who want to shop more affordable basic pieces for their wardrobes.

• Location: Urban as well as suburban areas, sold in multiple countries, but tend to be most popular in London - where the flagship store is located.

• Socioeconomie Status: Tends to be more lower to middle class income brackets.

Psvchographies

• Lifestyle: Fashion loving individuals who love to shop the most recent trends and keep up to date with whats new in.

• Interests: High interest in fashion, lifestyle, trends and celebrity culture.

• Values: Self-expression, loves dressing to express themselves, loves staying up to date with the trends.

• Aspirations: Want to keep up with the trends and what people are wearing, as well as staying up to date with popular culture and celebrity and influencer fashion - seeking inspiration from how they dress.

Behaviours

• Consumer behaviour: Likes shopping affordable basic pieces, as well as trying their best to try and switch to being more sustainable, shopping from second-hand places and trying to rent items when they can.

• Media consumption: They are active on social media platforms including- Instagram, TikTok, Pinterest, Youtube and follow many influencers who they take inspiration from

• Shopping habits: Enjoys shopping both online and in store, depending on what they are buying, they just shop when and where is convenient, but are constantly looking at what they can buy next to stick with the trends.

• Event participation: Would love to attend fashion shows and events, but currently does not, but enjoying watching clips from these online.

emplovees globally (Smith 2023)

75

markets and e-commerce sites in 60 (H&M Group 2025)

17

billion in sales in 2025 (‘H&M (HM-B.ST) - Revenue’ n.d.)

89%

of materials used in H&M products were recycled or sustainably sourced (Group 2024)

Threat of New Entrants: (Moderate to High) Digital platforms and social media marketing have lowered the entry barriers for new brands, enabling online-only retailers to gain traction without significant infrastructure. However, building global recognition, a reliable supply chain, and a broad product portfolio like H&M’s still requires substantial capital and expertise, which protects established players to some extent.

Threat of Substitutes: (High) Consumers have numerous alternatives, ranging from luxury brands and mid-tier retailers to second-hand clothing platforms, thrift stores, and even rental fashion services. The growing appeal of sustainable fashion and resale marketplaces increases the risk of customers switching away from traditional fast fashion models, which challenges H&M’s value proposition.

Bargaining Power of Suppliers: (Moderate) H&M works with a large network of third-party suppliers, which reduces its production control but gives it leverage due to bulk orders and global scale. However, rising material costs, supply chain disruptions, and increasing demands for ethical production are strengthening supplier influence, which could impact pricing and delivery schedules.

Bargaining Power of Buyers: (High) Shoppers are highly price-sensitive and have access to a wide range of brands offering similar trends and styles. The fast fashion model is easily replicable, and online platforms give customers the ability to switch brands quickly. Buyer power is further amplified by social media and online reviews, which can quickly influence purchasing decisions.

• Backlash in China (2021) and market exit from Russia (2022) show vulnerability to geopolitical tensions.

• Trade tariffs, post-Brexit rules, and evolving global compliance add operational complexity.

• Governments increasingly link trade and retail policies to sustainability and labor standards.

Economic:

• Persistent inflation and rising textile/energy costs pressure margins.

• Currency fluctuations (EUR/USD/CNY) affect global sourcing and reported earnings.

• Fast-fashion market projected to exceed $150 billion by 2025, offering growth but intense competition.

• Emerging markets with growing middle-class populations present expansion opportunities.

Social:

• Rising demand for ethical, sustainable, and transparent fashion practices.

• Risk of consumer backlash due to perceived greenwashing or unethical supply chains.

• Social media and influencer-driven trends shape fast-changing consumer preferences.

• Shift towards slow fashion and resale markets challenges traditional fast-fashion models.

Technological:

• AI, data analytics, and machine learning drive forecasting, personalization, and efficiency.

• Virtual fitting rooms, AR/VR, and mobile-first platforms improve digital experiences.

• RFID and automation enhance inventory management and logistics.

• High investment needed to stay competitive with tech innovations.

Legal:

• New regulations (e.g., EU Corporate Sustainability Due Diligence Directive) demand strict supplier transparency.

• Environmental laws require sustainable sourcing and waste reduction.

• Data protection rules like GDPR affect online retail and customer data use.

• Intellectual property risks persist in fast-trend replication.

Environmental:

• Global pressure to reduce emissions, textile waste, and pollution.

• H&M targets net-zero by 2040 and aims to halve emissions by 2030.

• Circular fashion initiatives (e.g., garment recycling) are growing but face operational challenges.

• Climate change threatens raw material supply and logistics stability.

H&M faces rising pressure to balance affordability with sustainability amid stricter regulations and shifting consumer values. While technology and e-commerce offer growth opportunities, economic volatility and geopolitical risks pose ongoing challenges. Success in 2025 hinges on agility, market diversification, and building trust through genuine sustainability efforts.