Impact of Market Trends on H&M: A Detailed Study

CW1: INQUIRY PROJECT
FY028

TABLE OF CONTENT
INTRODUCTION...............................................................................................................3
MAIN BODY.......................................................................................................................3
Trends in retail industry..................................................................................................3
Analysis of the organisation...........................................................................................5
Recommendations.........................................................................................................7
REFERENCES..................................................................................................................9

INTRODUCTION
H&M is multinational apparel retail industry, they are best known for their fast
fashion clothing for women’s, kids and men’s. the company was established in 1947.
This report is a detailed study about how the latest retail market trends which are
changing rapidly have affected the functionality of the company and also a thorough
description of the internal environment and its components within the organisation and
lastly all the recommendations and suggestions will be identified under this research of
how company should improve and cope up with the different factors affecting the
company and its operations.
MAIN BODY
Trends in retail industry
Market trends and preferences will change on a rapid pace as the changing in
demands and needs of the consumer. Fashion industry is continuously evolving as
every day there is a new fashion trend introduced in the market and people get drifted
by that, so its really important for the company to keep up the pace with that ever-
changing attitude to maintain the competitive advantage in the fashion retail industry.
Porters five force model is applied to analyse this situation which is discussed below:
Porters five force
Threat of new entrant: The company have a biggest advantage of their
economy of scale which is hard to achieve by new participants because it’s not easy to
do production in large quantity for every other retailer. Also, H&M provides diversified
and wide variety of product range along with that they are customer centric and focus
on maintaining strong customer relationship and invest in their advertising and
marketing as well (Giri, Thomassey and Zeng, 2019). The most important part is that
the initial operating capital and investment required to establish a retail outlet is very
high. Some legalities were also required in order to start a business they need to avail
authorised licensing and authorisation to operate in that particular region or are. All
these factors make it difficult for the new business to enter the market.