BRANDING OF H&M
What elements does the brand use to establish brand identity?
A strong brand delivers a clear, credible and memorable message. It connects with its intended audience at an emotional level. It motivates buyers and reinforces their loyalty. H&M accomplishes this through its many different elements in branding. Firstly, the name H&M stands for H&M stands for Hennes & Mauritz. By using H&M, it keeps it simple and yet a bit mysterious since they are just letters, not full names. The logo itself is also simple, consisting of two red letters H and M, both red with “&” sign in between them. It is easily identifiable and has led to be one of the most significant trademarks in the fashion industry.
What are their brand values?
H&M believes that their values guide their actions in their daily work along with their policies and guidelines. H&M's values are called “the H&M spirit”. They emphasize that their values are consistent of the following: "We believe in people, We are one team, Constant improvement, Straightforward and open-minded, Entrepreneurial spirit, and in all we do, sustainability is a natural part". These values ensure a workplace in which the decision paths are short, where everyone works together at a fast pace, and where everyone can rely on each other’s knowledge and abilities. H&M has strong values based on fundamental respect for the individual and belief in each person’s ability to show initiative. Together, over 104,000 employees form a design driven, creative and responsible global fashion company with a passion for fashion and an ambition to always exceed customer expectations. A drive for constant improvement is also part of the H&M spirit that has existed since the first store opened in 1947. H&M believes these values should be regarded as a support, something to strengthen them and use in their everyday work.
What does the brand stand for?
Everything H&M does begins with the customers; the goal is always to exceed their expectations. Of all ages and from all around the world, customers have different styles, dreams, and expectations, and are increasingly aware in their fashion choices; they are a source of continuous inspiration. H&M strives always to be attentive and to offer the best combination of fashion, quality and price. H&M is committed to always delivering fashion and quality at the best price. The customer is always the focus, from the design process to the shopping experience. Understanding and meeting the customers’ needs is at the core of everything they do. H&M offers fashion with high attention to quality to everyone. They want their customers to feel confident they are getting the best possible deal when shopping at H&M. Also, they have strong beliefs in sustainability. Considerable resources are devoted to increasing sustainability at H&M. H&M does not own factories, but instead buys products from independent suppliers and works to bring about long-term improvements for people and the environment – in the supply chain, the garment lifecycle and the communities in which H&M is active. H&M Conscious is the name of H&M’s work for a more sustainable fashion future. H&M’s vision is for all its operations to be run in a way that is economically, socially and environmentally sustainable. For this reason sustainability work is not a separate activity – it is included in every aspect of the business. In addition to sourcing the right product from the right market, other factors contribute to ensuring the best price in store: in house design, no middlemen, large purchasing volumes, efficient logistics and cost consciousness at every stage. Efficient decision making and flexible assortment planning ensure that the product range is always adapted to the latest trends and customer expectations.
How effective is its brand identity?
With over 116,000 employees, 3,132 stores, 53 markets, sales including VAT SEK 150 billion, and profit after tax SEK 17.2 billion in 2013, it is fair to say that H&M's brand identity has served them well. H&M is also #31 on the world's most valuable brand list on Forbes. The brand is well known globally and is one of the biggest fashion retailers in the world. For consumers, they retain a positive public image and the brand itself "H&M" typically brings up favourable perceptions.
What brand strategies does this brand appear to be using?
H&M constantly uses branding strategies to further build up their brand image and promote themselves. Firstly, they are constantly pushing their business concept “Fashion and quality
at the best price”. This idea is found almost everywhere, from websites to stores. The message itself is attractive for consumers as well, because it guarantees low prices that are quiet appealing. They stay true to this concept and this is important for brand messaging. The celebrity association that the brand uses is not just in their ads, but who actually voluntarily wear their Conscious line makes a huge statement about affordability and status. H&M then combines status, luxury and affordability into one – creating a new kind of concept that breaks the paradigm of celebrity wealth and expensive fashion. Now, anyone can have a status without needing the wealth because the clothes are attainable. H&M is trying to change behaviours in terms of how people view and consume fashion. Their advertisements are modern, constantly up to date with the latest celebrities and trends so they try to shape a ‘cool’ identity with their community. There is a sense of motion in their ads – with a congruity and integration of the prices. They are creating a new reality where you can wear a designer brand at an affordable price.
How does it appear to be connecting with consumers?
H&M is one of the leading fashion companies on Facebook, Twitter, Instagram, Google+ and YouTube, as well as on China’s social networks Youku and Sina Weibo and Russia’s VKontakte. H&M’s communication is global and fashion enthusiasts all over the world interact with them through social media and apps. Also, they All H&M’s advertisements are produced centrally at the head office in Stockholm. This means that the advertisements are largely the same in all markets, but the media mix is adapted to local needs and circumstances. The centralized, organizational structure ensures a uniform branding of H&M in all markets. This means that customers will get the same H&M experience whether they enter a store in Stockholm, Paris or Hong Kong. H&M’s advertising images do not aim to communicate any specific ideal, but rather a range of styles, attitudes and ethnic backgrounds. The campaigns are designed to be clear and simple, and aim to inform their customers of what’s new at H&M. All their marketing is part of the shopping experience, aiming to guide and inspire customers to find the right fashion products both in their stores and online. H&M’s marketing activities comply with the ICC advertising guidelines.
What kinds of consumers would likely be drawn to this brand?
H&M’s target customers are youths and young adults of both sexes. Customers are segregated based on location with different regional preferences. Preferences between regions and markets differ significantly as consumers are fragmented into more specific niche groups than ever before. There are also significant differences in the perception of people and products originating from different locations. For example, the French and Italians are considered more fashion-forward and stylish than the Germans or British. Even within countries, there are differences in perceptions. For example, in the U.S., the two main fashion sources are New York and California. Information diffusion has accelerated trend spread and adoption leading to styles changing more quickly than in the past with customers separated into tighter niches.