UK Fashion Clothing Market and H&M Retail Strategy Report

This report provides a comprehensive analysis of H&M's retail strategy within the UK fashion clothing market. It begins with an introduction to H&M, a leading global fashion brand, and outlines the report's objectives. The main body delves into key changes in the UK fashion market, including political, economic, social, technological, legal, and environmental factors, and how these impact H&M. The report examines the micro-environment using a SWOT analysis to assess H&M's strengths, weaknesses, opportunities, and threats. It then explores appropriate retail strategies and tactics, particularly focusing on the marketing mix (product, price, place, and promotion). The report concludes with recommendations for H&M to adapt to the dynamic market, addressing challenges and leveraging opportunities for continued success. The report is contributed by a student to be published on the website Desklib, a platform which provides all the necessary AI based study tools for students.

Retail theory and practice

Contents
INTRODUCTION...........................................................................................................................3
Introduction to company.........................................................................................................3
MAIN BODY...................................................................................................................................4
Key relevant changes of UK fashion clothing market............................................................4
Relevant changes within micro environment.........................................................................6
Strategies and tactics that are appropriate for retail organisation...........................................7
Recommendations..................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The term retail marketing refers to the institution or the persons who play role of
distributing and delivery products and services to end consumer. Goods are designed and
manufactured for so they are purchase and consume by individuals and it is the responsibility of
retailers to provide and take products towards final destiny to consumers. In the present scenario,
the term retail is derived from French word retailers that are for cut a piece, a break down. The
term retailers buys products in large quantity and sell them in market within small quantity for
satisfying needs and wants of customers in an appropriate manner. This report is written from
perspective of H&M and it one of leading fashion brand that satisfy needs and wants of
customers at global level (Weber, 2014). Moreover, this report highlights on changes of UK
fashion clothing and also recommendation will be generate for responding towards overcoming
from major changes that occur in market.
Introduction to company
Hennes & Mauritz AB is a Swedish international clothing retail organisation that operates their
business in fashion industry. In the present scenario, H&M is well-known for its clothing related
with men, women, children and teenager. Along with this organisation is operating their business
at global level with help of managing store in 74 countries by operating and controlling more
than 5000 stores at international level. Along with this there are various tasks performed by
management and this aids an organisation for completion of their work with use of completing
work according to current clothing trends. Along with this H&M is second largest global clothing
retailer and it is developed by organisation for managing task with offering products through use
of performing online and offline methods to approach large number of customers. Moreover,
scope of clothing industry is too wide and it aids business to complete task by performing all
work with more efficiency specifically offering clothing with current trends. There are various
task performed by management and this insists individuals for managing and completing work by
use of current methodologies to design unique clothes (Teufel and Zimmermann, 2015). This
results needs and wants of customers are satisfied in an organised manner. In the year 1974,
H&M management listed themselves within stock market. There are various task performed by
management and it is designed with motive of appealing investor and financer and this leads

management to complete all work by engagement about expansion of business by gathering
funds from market. Moreover, organisation engaged all persons to sale items which are used to
distribute about online perspective for registering catalogue about company products. Product
portfolio of H&M is too broad and wide and it helps to attract more number of individuals by
offering products to person at large level. Moreover, all products provided by respective
organisation are good in quality and it is use by management for completion of task according to
requirement of consumers.
MAIN BODY
Key relevant changes of UK fashion clothing market
In the present scenario, there are various task performed by respective organisation which is
used by management for improving company profits and goodwill (Swoboda, Elsner and
Olejnik, 2015). But with globalisation aspects it is complex to perform all work in an organised
manner due to different challenges among market. Some challenges that are faced by H&M
while operating business in UK fashion clothing market are discussed as below:
 Political factor- Organisation such as H&M exists at global level so it is essential for
management to monitor and overview all functions and operations of business. In the
context of UK, Political conditions are stable and this is used by management to
complete task according to decided task. In context of H&M management consider
themselves with motive of implementing fair working conditions. The changes monitor
due to political factor is increase in tax and cost of operations. One of the major
challenges in political aspect defines Brexit aspects and it is used for completing work
according to political grounds. It creates challenges for H&M because operation cost for
business in increased because most production units are established in UK.
 Economic factor- The decision of Brexit creates challenges and this is used by
management for managing work with business aspects. There are various operations
performed and it is used to generate signs by political turn in profit-making. Along with
countries labour laws make significant changes due to this profits for business are
reduced (Soma, 2019). Change which is monitored in clothing industry is that
individuals stop to make expense on expensive clothes. Moreover, H&M charge
premium price from purchaser so the norms related with economic policy is increased

and corporate tax policy varies due to which this is also complex to align all functions
with profits of business.
 Social factor- Clothing is a field among which persons is directly influenced through
the aspects of social media and celebrities. There are various task performed by
management and it is used for influencing and promoting with channels that are related
with goals (Roggeveen and Sethuraman, 2018). One of the major changes which are
identified that prefers about making changes with pandemic conditions specifically
Covid-19. Methods of sale is changed such as contact less sales is adopted by customers.
So new products requirements such as face shield and mask are needs of customers.
Social factors aid management in completion of work with more efficiency through
completion of task according to society need, value and belief.
 Technological factor- The time of cell phone has shown up. Individuals are not any
more keen on heading off to the store and purchasing the garments stock when they can
do the equivalent by means of portable application. Change in technology results that
virtual check-up of dress is more controlled by customers and they prefer to buy
products from E-commerce platform. The innovation gives the client the simplicity of
requesting from their work environment. The organizations including H&M need to stay
aware of this technological progression and related evolving conduct. Prize focuses
either straight forwardly in the application which is utilized to arrange or as limits are a
pleasant methodology blended in with innovation to expand the client base.
 Legal factor- Every nation has its own administrative arrangements (Pousttchi and
Hufenbach, 2014). Firms working in those organizations need to comply with the
guidelines to be effectively ready to work the business. For instance, H&M needs to
work together with diversifying accomplices in other countries and so on in any event,
when diversifying was not the piece of development technique of H&M. Legal aspect
make change as quality of products must match with government rules. The Intellectual
property right is significant concern. Assume an imaginative plan is produced by H&M
however on the off chance that it isn't lawfully made sure about, at that point can be
taken by its rivals and inside no time the advancement which might have given them the
advantage in market evaporates away.

 Environmental factor- Material or clothing industry overall is the second most
contaminating industry after oil industry. The high measure of water consume which is
produced dirties the water bodies. The populace living close by to those water bodies
experiences different dangerous infections that impacts on health of merchandise.
Changes with environment factor define work to engage only those factors that is easy
to recycle (Pioch and Gerhard, 2014). There are government standards for managing
these outflows into the air yet is complex to control. H&M has an objective which is to
be utilise totally reused garments material for its creation.
Relevant changes within micro environment
SWOT analyses model is implemented by management of H&M to understand strength,
weaknesses, threats and opportunities. Further, SWOT analysis is an effective framework and
this enable organisation as a brand by which H&M to improve company performance. SWOT
from perspective of H&M are discuss as below:
Strength
 Wide range of products- H&M offer wide range of products and it include apparels,
cosmetic, accessories and shoe. This leads persons for managing and completing work as
per that makes collection of activities with motive of satisfying individual needs and
wants of customers.
 Unique products- H&M sell its products portfolio through managing needs as it is used
for completing task as per company brands such as H&M, Weekday etc. This brands
perform about unique identity which is used on making customer target group. Creativity
is major strength and this also aids organisation to attract more number of customers.
Weaknesses
 Dependence on third party- H&M is extremely reliant on other sellers for their
merchandises (Pantano, 2014). H&M outsources product industrialized on other small
and large independent suppliers and this results organisation lower control over
production.
 Affordable pricing impact quality- H&M is a popular organisation and this is well-
known for affordable clothing. This also results that sometimes products quality of
clothes is impacted due to managing price of clothes.
Opportunities

 To focus on profitability- H&M is focused constantly towards the expansion of their
store all over the globe. In the present scenario, respective organisation adds new stores.
So it is easy for management of H&M to improve their top as well as bottom line. This
results profit is increased by offering high-quality and current products to customers.
 Expansion in emerging market- Among all the over world emerging market exists at a
large level and this also provide potential in clothes industry (Jocevski, 2020). H&M is
focused towards establishment of their store in Asia market. This is because emerging
market provides opportunity to improve capital for business.
Threats
 Evolving fashion trend- Clothes industry is too dynamic and this develops subjects that
are implemented to keep changes in quick manner within fashion industry. Social media
plays an important role for analyse of new trends that are implemented in society. H&M
deliver new products as per trends to sustain in market.
 E-commerce allows new entrants- The term E-commerce provide advantage as well as
threats to organisation because organisation formulate popular brands now compete with
new brands. This also impacts on business brand of H&M as new organisation develops
products at same trend and market.
Strategies and tactics that are appropriate for retail organisation
The term strategy defined an appropriate method and this is used by organisation for
implement of tactics by which negative impacts are managed and controlled. In the context of
H&M, micro and macro environment consists is used for controlling work with decided market.
Some strategies and tactics which is essential for H&M market is discussed as below:
Marketing mix tactics
Use of marketing mix helps workforce and departments of H&M to develop and
implement all P’s at a same place (Das, 2015). In simple terms, product, price, place and
promotion are considered for completion of all work according to decided methods and
objectives.
 Product- H&M is an appropriate and trusted brand and this is used for completion of
work according to merchandise which is used in managing work according to portfolio.
With analyse of core range about products this is easy to understand operations cost by

managing products cost. So political changes is managed by organisation with making
deal as per merchandise.
 Price- Pricing strategy of H&M is controlled by managing range with making sphere of
buyer and merchandise. Discount section is an effective technique and this is used by
H&M aspects for performing work as per changes of economic. Individuals are attracted
to remove barrier from economical terms by improving economy of country.
 Place- H&M is second retail clothing organisation that is situated among all over the
world with a network that is spread within different fifty-five countries. Along with to
overcome from the pandemic conditions (Childs and Jin, 2015). It is easy to offer and
provide better products that aids in implement of managing new methods to improve
company sales. Online distribution or E-commerce is effective ways to place all products
with interactive approach.
 Promotion- H&M realise potential about promotion and marketing of activities and it
aids for making special care about implement of effective ways. Along with this
advertisement focus on ways through which more individuals are approached by
minimum cost. H&M techniques make strategy for completion of task with developing
strategy.
Training of employee’s on on-going basis
One of the effective techniques that is used by management relates with analyses of
retailers and it hire competitive factors for persons through which individuals perform their role
by providing training which satisfies needs of customers in an appropriate manner. From
perspective of H&M the main motive of providing training is to train them with current
knowledge. This aids persons to follow task by which retail sales is increased like, employees are
trained with communication skills and this aids in making effective ways to motivate workers for
completion of task with more efficiency. It also refers models are implemented in making
merchandise by which persons are motivated in completion of task with use of positive technique
such as rewards and monetary terms to individuals for completing work by constant training
(Andersson and Forslund, 2018).
Recommendations
The main motive of H&M and other retail organisation is to improve their customer base
that makes entire aspects in favour of business. From perspective of organisation this is identified

by management that retail sector improves their market with focus on ideas with understand of
H&M objectives. Some recommendation for H&M is mention as follow:
Keep the Interest Alive
Execute a client commitment program utilizing an instrument like Clothing industry
extremely simple set up try of clothes– they likewise offer free preliminary so individual can
check whether it's a fit for their requirements. During new item or administration dispatches,
ensure enough individuals think about how persons relate company with trends. So to overcome
from threat of sustainability and competition from new brands it is recommend to H&M that
authorities generate interest of customers within products to retain in market for longer period.
Focus on Customers
This is critical in retail activities: consistently go to each client's necessities and give them
astonishing client care. To expand consumer loyalty even by a smidgen can bring about steadfast
clients that continue purchase on continue basis. This implies that H&M have to manage them as
they emerge and not just hide them where no one will think to look. Being a pleasant individual
is extraordinary resource and it support H&M to implement recommend of focusing on specific
target market of customers. Customer focus recommendation also helps to achieve opportunity of
entering in emerging market by manufacturing products with specific customer need.
Stay up with the latest and Motivated
Ensure that staff has great item information. Train them on new items consistently so they
keep awake to-date. Prize them with deals motivators to keep them cheerful and roused. For
instance, H&M can run deals challenges for accomplishing of standard inside the sales of overall
month with in its initial 15 days by encouraging individuals to complete their work with more
efficiency. This results motivated workforce identifies solution for removing barrier such as use
of technology in all departments.
CONCLUSION
With the analyses of above report it is concluded by management that retail sector is a
large industry that perform an important role for satisfying consumer need and wants. Clothing
sectors is a part of retail industry and it is one of the most dynamic sector due to which it is
complex for large organisation to adopt new system for completing their work in a proper
manner. There are various challenges such as increase in operation cost, slow of economic and
many more create difficulty for H&M to manage work with more efficiency. In the last, some

recommendation to improve customer base and profits are increased and it is used to improve
profits, goodwill and market area for business.

REFERENCES
Books and Journals
Andersson, P. and Forslund, H., 2018. Developing an indicator framework for measuring
sustainable logistics innovation in retail. Measuring Business Excellence.
Childs, M.L. and Jin, B., 2015. Internationalization Of Fast Fashion Retailers: Does It Follow
The Uppsala Model?. In Marketing Dynamism & Sustainability: Things Change, Things
Stay the Same… (pp. 693-696). Springer, Cham.
Das, G., 2015. Retail shopping behaviour: understanding the role of regulatory focus theory. The
International Review of Retail, Distribution and Consumer Research, 25(4), pp.431-
445.
Jocevski, M., 2020. Blurring the Lines between Physical and Digital Spaces: Business Model
Innovation in Retailing. California Management Review, 63(1), pp.99-117.
Pantano, E., 2014. Innovation drivers in retail industry. International Journal of Information
Management, 34(3), pp.344-350.
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Soma, T., 2019. Space to waste: The influence of income and retail choice on household food
consumption and food waste in Indonesia. International Planning Studies, pp.1-21.
Swoboda, B., Elsner, S. and Olejnik, E., 2015. How do past mode choices influence subsequent
entry? A study on the boundary conditions of preferred entry modes of retail
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Teufel, P. and Zimmermann, R., 2015. Holistic retail design: reshaping shopping for the digital
era. Frame Publishers.
Weber, R., 2014. Tax increment financing in theory and practice. In Financing economic
development in the 21st century (pp. 297-315). Routledge.