Challenges and Solutions for H&M in the Fashion Industry

This document discusses the challenges faced by H&M in the fashion industry, particularly in adapting to technological changes and competition from online stores. It proposes the use of live video marketing as a solution to overcome these challenges and improve brand image. The document also provides insights on how H&M can practically implement this solution.

UNDERGRADUATE
MAJOR PROJECT
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Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
One challenge facing by H&M...............................................................................................2
TASK 2............................................................................................................................................3
One specific solution in context of challenge determined in above task one.........................3
TASK 3............................................................................................................................................5
How organization practically implement solution identified in above task two....................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
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INTRODUCTION
Business environment is complex realm of conditions and factors that influence overall
business activities and practices. It includes some external and internal elements that create
varied types of challenges, which direct impact on tactics and management planning. The current
study will base on H&M, which falls under category of leading and most popular fashion brands
in UK and all over the world. It is originated from fishing and hunting store. This study is
divided into three different tasks. This report will explain one challenge facing by chosen
organization and one solution to address this challenge. Furthermore, this assignment will justify
how firm can practically implement solution determined in task two.
TASK 1
One challenge facing by H&M
Hennez and Mauritz is a Swedish international clothing retail organization that caters
fashion clothing for women, children, men and teenagers (Arrigo, 2018). Firm reaches fashion
followers across the world and has come a long way since the first firm outlet opened in Sweden
in the era 1947 with their first business expansion to a global business started in 1960s. H&M
shook up shook up traditional apparel retailers. But now organization itself is being disrupted
from several factors and face challenge due to adoption of digital technologies adopted by other
online stores and other brands like Zara, Amazon. It impact led to a decrease in organizational
revenue.
In simple words, it can be said that main challenge H&M is facing is adapting to
technological change; they face this issue from organizations promoted apparel at a cheaper
prices and from other online outlets to consumers (H&M: Challenges Adapting to New Business
Trends, 2020). Each change in fashion market always impact on clothing brands, their business
strategies and plans. Many biggest fashion companies in UK apparel industry are attempting to
gain competitive advantages and enhance their consumer’s base, which is quite essential for all
of them. H&M business also get affected because of technology change adopted by other brands.
Technological change is one of the external factors that modify overall business activities. The
challenge that chosen organization is facing has arisen due to the development and advancement
of digital marketing tools which change marketing tactics of other fashion brands in similar
market. Many online stores like Amazon, Boohoo, Asos etc, are promote their cheaper cost
products through the best marketing tools for commercial purposes. For example, Amazon has
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advertise and then sale after a glitch misprices thousand of products, it is especially designed to
them competitive by automatically reprising products on Amazon so they are cheaper than other
brands like H&M in digital market.
It increase competitive business environment in market, which is not suitable for growth
and profitability of firm. Adapting to change matter a lot, it gives business new highs and boost
up their productivity level rather than before. All the brands want to grow and sustain for long
for which they adopt change or consider new trends emerging in industry (Olins, 2017). It can be
said that change is one constant in life and adapting to change is one of the greatest challenges
that influenced each and every things such as marketing plans, selling strategies and other
business functions in negative manner, until it cannot be solved by applying effective method.
One of the important to be aware of change is to be market conscious. It analyzed that market
consciousness is being capable to monitor current trends, developing new tactics and shift in
market to adopt into these modifications.
Technology changes refer to difference between previous technology use for marketing
and their technologies use in current selling day (Orben and Przybylski, 2019). Amazon and
Asos by promoting their cheaper price products via digital technologies gaining attention of new
consumers towards purchasing, which put high pressure on H&M sales and marketing activities.
There are so many options company can consider to overcome this challenge and build their
strong brand image in market. Before buying anything, people pay more attention to price and
quality and then take decision accordingly. By promoting items at cheaper prices with
appropriate quality companies gain attention of H&M customers as well. It bring varied issues
for company in term of retaining potential buyers, managing business practices and sustaining
for longer period of time in sector. The main source of profitability and revenue for all brands or
companies are consumers, without having strong customers base organizations like H&M cannot
be able to sustain in industry.
TASK 2
One specific solution in context of challenge determined in above task one
In above task, challenge faced by H&M has been discussed in detailed. Now it time to
discuss appropriate solution and approach in context of it, which is actually very important and
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beneficial for company. Amazon and other online as well as offline brands by marketing their
cheaper price clothes can gives tough challenge to firm and decline its business growth.
In regard to this challenge the best thing company can do is to use latest and most popular
marketing platform for their products, they can adopt specific method which is suitable and
beneficial for them in term of increasing sales, profitability, improve financial performance and
productivity level even better. Many people in the world are unable to aware of many brands and
cheaper offer because they do not use social media sites. By choosing the best solution company
can satisfy these consumers and gain attention of more. By using the most effective marketing
tool or platform, in context of challenge facing by H&M they can solve it as soon as possible.
Live Video marketing instead of social media-
It is one of the best and efficient marketing technologies, company can use to overcome
above challenge. It is a solution or Method Company can adopt by promoting products with
something unique features which are different from other fashion brands either online or offline.
It is the way of using videos to advertise and market H&M items, increase engagement and
awareness on their digital and social sources, reach its consumers with a new medium and
educate them. It is the most essential and beneficial marketing source in recent time and
considered for next 5 to 10 years (Mowat, 2018). Live videos via using business profiles and
social media platforms gives customers a special, behind actual scenes look at brands. It also
draws longer streams and greater engagement rates of viewers spending up to 8. 2x longer with
live video change than with video on demand. It is pretty simple and easy way firm can use to
create their brand video that, in some way or another, advertise their firm, drive people towards
purchasing clothes.
It analysed that 87 percent of online marketers are using video content in their marketing
tactics or digital marketing plans. In simple words, when brands utilize video to market their
businesses, items or services, engage on social media platforms, educate prospective and existing
clients and interact with them. According to a survey by Wyzowl, more than 76 percent of
ventures which utilize this solution believe that it outcomes in better ROI, 93% of companies
believe that it increases user comprehending of their items or services and above 72% of firms
trust that it has enhanced conversion rate of their businesses websites. Videos have
revolutionized how fashion and other brands connect as well as communicate with their potential
consumers (Sudha and Sheena, 2017). They have modified way a company or brand sells and
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promote, the way people purchase or shop, way individual consume and the way consumer’s
services teams maintain relationship with their buyers.
Many brands in commercial world used above tool or approach on their landing pages,
blogs, and social media posts and even in emails. Out of them, 83 percent trust their home pages
explainers’ video to be efficient, 80% faith video is emails bring in needed ROI and 78% trust its
is on social media to be a high strategy. From above discussion, it has been identified that by
using above digital marketing technology company can obtain several benefits.
TASK 3
How organization practically implement solution identified in above task two
Live video marketing is the latest and most effective marketing technology in the whole
world. It has been described in above tasks as solution in context of challenge H&M face.
Organization vision is to lead change towards renewable and circular fashion while being an
equal and fair company. Management can achieve business vision by implementing above
solution in effective and systematic manner, which make them able to enhance consumers
satisfaction and improve marketing activities even better. They can adopt change and implement
live video marketing approach within their exiting marketing tactics and plans. This technology
is not just about adding a perfect video to market unique offering. It included careful selection,
placement and development of video as separate resources or within current marketing
campaigns to get the best out of it. By considering following ways H&M can effectively
implement this technology in practical manner;
Determine aims-
Before taking any step or implementing live video marketing solution, organization
should set their aim. They want to gain competitive advantages within fashion industry and
enhance consumers base more than other brands.
Create social media account-
H&M before using and implementing above effective solution must create a social media
page where they can communicate and chat live with consumers who are highly interested in
brands products and seek to purchase since for so long. It is very important stage of live video
marketing procedure. Marketing department should consider overall process and do not take any
kind of risk that impact on efforts in negative manner. It is the main plot or area where marketing
process takes place and gets success.
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Plan video-
Now it’s time to take one step ahead towards implementing live video marketing solution
in company. After setting goal marketing department target their consumers and then create
video content before communicating with customers either new or existing. They should set
appropriate budget, which is the most important element that guides other judgement related to
video creation and marketing of products. Organizations skilled employees give their best and
make everything ready, they should take some products with them to show people about its
quality and look.
Invite people for live promo-
Furthermore, marketing department workers by considering list of existing buyers and
their contact people, can sent an invitation to join live video marketing which is very beneficial
for company because no other brand can do like they can do. This phase includes live chatting or
marketing invitation that required an effective and impressive content. Company should give this
accountability to experienced and talented applicant who can do to its best and satisfy people by
solving their queries as well along with brand promotion.
Start marketing-
After completing all above stages, now marketing department came to last phase of live
video marketing process. With the help of knowledgeable and talented workers company can
start live promotion, which makes them more popular. It set positive image in mind of
consumers and drive them towards purchasing clothes from H&M brands. At this stage the
process of implementing above solution has been completed and provide a lot of benefits to
company in term of overcome challenge.
CONCLUSION
From above analysis it has been concluded by using video marketing H&M effectively
developing their brand image in all over the world. With this solution company successfully
overcome challenge which they face while operates their business in fashion or apparel industry
since for so long. H&M with this effective approach easily gain attention of new consumers
within new market place which help to make its brand more popular as compare to their
competitors. Furthermore, it has been summarized organization implement this solutions by
making effective plans and communicating with different stakeholders such as managers, leaders
and others. They develop a page where highly experienced and professional applicants by
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communicating with new and existing buyers solve their queries related to products and promote
brand in ethical manner.
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REFERENCES
Book and Journals
Arrigo, E., 2018. The key role of retail stores in fast fashion companies: The H&M case study.
In Contemporary Case Studies on Fashion Production, Marketing and Operations (pp.
121-137). Springer, Singapore.
Mowat, J., 2018. Video marketing strategy: harness the power of online video to drive brand
growth. Kogan Page Publishers.
Olins, W., 2017. The new guide to identity: How to create and sustain change through managing
identity. Routledge.
Orben, A. and Przybylski, A.K., 2019. The association between adolescent well-being and digital
technology use. Nature Human Behaviour. 3(2). pp.173-182.
Sudha, M. and Sheena, K., 2017. Impact of influencers in consumer decision process: the fashion
industry. SCMS Journal of Indian Management. 14(3). pp.14-30.
Online
H&M: Challenges Adapting to New Business Trends. 2020. [Online]. Available through: <
https://gradesfixer.com/free-essay-examples/hm-challenges-adapting-to-new-business-
trends/#:~:text=The%20main%20problem%20H%26M%20is,system%20and%20opening
%20digital%20stores.>
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