Political-
·
Work
with private, social, and government organizations to help improve the quality
of life for the underprivileged (especially in countries from which they have
factories like China and Bangladesh)
·
Incorporate
lesser well-known brands to expand the overall lifestyle brand of H&M
(companies bought include: Cheap Monday, Monki, and Weekday
Economic-
·
The
US is the fastest growing market for H&M (they target to grow 10-15%
yearly) in which the economy has slumped making their philosophy of “fashion
and quality at the best prices” all the more appealing.
·
Flattened
the supply chain by sourcing their own factories and combining their in house
design with bought designs which creates a lower COGS.
·
Keep
the company private so it does not have to deal with the fluctuating market.
·
Franchise
stores in markets which are hard to gain access to such as the Middle East.
·
H&M
does not operate on credit with their vendors or property owners (store
leasing). Everything is paid for in cash making this a healthy company to work
for
Social
Demographics-
·
Global
economies have seen a drop in the stock markets and other sources of income
prompting consumers to tighten the belt on spending. This makes fast fashion
retailers more attractive to the saavy bargain shopper.
·
In
the US, families are decreasing in size and Americans are starting families
later in life which is an indication consumers have more of their income to
spend on themselves rather than on kids.
·
Recent
news of Target reporting a 2nd quarter loss in revenue prompts
retailers to increase the amount of advertised discounts and “special deals”
which H&M continues to do well
Technological-
·
This
year H&M launches online retailing for those in the US market
·
They
offer “e-dressing” which is a virtual dressing room available on their website
·
H&M
continually updates their in house communication systems which leads to faster
lead times and quicker turnover
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