H&M is market oriented, therefore, it is customer oriented due to its low prices and locations. The low cost of items in the H & M shops all over the world makes it get more customers than all other fashion houses. The fashion is powering and the prices are low, hence elegancy of  H&M shopper speaks for itself. The retail shopping has increased the H&M sales and making the most productive in matters pertaining to profit margins in Europe. The wide display of the company gives it a major boost in terms of customers and sales (Hussey 2010). Display is very important for every item that is new in the market, because it gives buyers the outlook of the item. It attracts customers hence this is what has boosted the high turn out of customers in H & M Retail Company.

The shops outlook design is of high quality with all kinds of wonderful instruments to attract customers of all age groups into the company. The broadcasting styles employed by the H&M management are very fashion oriented and customer attractive that they give the customers the outlook of what they are buying on screens, when worn by other persons. This gives the shoppers the desire and increases the morale of the shoppers leading to them buying the clothes or the items of their choice (Saloner 2009). The designers at the H & M are on the look out to bring new designs to the market early enough before the competitors. They also have managers worldwide, who travel and interact with customers and get first hand information from the immediate buyers giving them an overview of their prompt action. This is information used to give designers the way forward on what designs to bring to the market and at what time according to demand. This is a skill that helps the H & M Company become very customer friendly and sweep the largest market share all over the world. The designers are of different ages to serve more age groups promptly (Sadler 2011). There are designers of a teenage group, who deal with the upcoming designs within the teenagers, while those of mature ages are experts on upper age groups. This helps this company to reach a variety of customers of different age groups.

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The shoppers in the H & M Company are of different age groups from those of the age of fifteen years to twenty five years. Due to the designers deployed in the company, there is also good and viable evidence on how this company is out to get more market share. The managers of different faculties deployed in the company reach out to different customers giving the company a higher number of customers worldwide. The employment of country managers in every country gives the company regional support and increase its revenue and customer due to their quality products and their pocket friendly prices. The reliability and availability of the company’s product gives it a good base all over the world (Hussey 2010). The company also protects ethnic interests of its customers, which give it a major boost in its holdings and membership. The Swedish seasonal clothes, such as sweaters for cold seasons, protect the customer’s interests fully. The designer should not always produce new designs but also improve on the existing designs to give better fashions.

The basis that H&M retailers use to segment their market is that of demographic factors. This type of segmentation is known as the demographic segmentation. Examples of the demographic factors include age of population, purchasing capacity, the gender and price preferences.


According to the report, H&M have opened stores in the U.S. market. Their products are being tailored to fit the younger females, who are termed to be more conscious of fashion. This is also evident in Europe, where the target is the college teenage girls. Based on the age, the product strategies and the marketing ones for the teenagers are considered different from that of kids and older generation. The ages are grouped as: 1-10 years, 10-20 years, and above 20 years. The criteria used here is that of identifying the customers’ needs. The teenagers are found to have the habit of being up to date with the newest fashion (Bhasin 2011). The knowledge of this, mostly in the USA has enabled H&M to react faster to the changing trends in fashion. The motive is to attract the young shoppers .This was a competitive move since H&M beats some of its competitors like Benetton and Sephora.


H&M has appreciated the fact that both males and females have varying tastes and preferences when it comes to what they prefer to wear. They have, therefore, put in place marketing strategies that will not conflict when it comes to the interests of men and that of women. Women, for example, are more conscious of fashion that men. This can be attributed to differing priorities in life. In the U.S. market, for instance, the stores are tailored for the young females. This is because males are more dominant in Europe and less popular in America. A number of the stores in the USA have either been eliminated or have been totally closed due to the unpopularity of the men’s wear (Bhasin 2011).

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Income Capacity and Price Preference

The purchasing capacity is one of the most significant bases for segmenting a market because every person or at least most of the population that is buying is price conscious. The principle that most individuals apply in life is living at the affordable means. This, therefore, entails that the products they buy are those that do not pinch. For instance, the H&M high fashion and low price concept has placed them higher than their competitors in the market share. The fashion of their competitors like Bebe and Club Monaco are expensive. The success of H&M can be attributed to their low price but trendy fashion. This is also evident, where the part time employee in school states that she will wear what is sold since he doesn’t have money, but yet in school (Bhasin 2011).


Market segmentation that is creative and effective is a key propeller of the new products in the market. This is because the new products will be directed to the individuals, who need them. This will help develop the popularity and market stability of the products. Segmentation enables a firm to be more competitive. For instance, if one is focusing on young generation, the brand recall will be higher than the rest (Bhasin 2011). This definitely increases the market share of the product resulting into a narrow chance of competitors entering the market. Segmentation helps also to increase the focus of the company. Once a product is tailored to the right market, the chances are that most focuses will be on the firm.

Increase in the focus or attention given to the company results in an increase in their returns since their products are loved and reputable. Segmentation, for instance, geographical one, where the products are tailored to meet the specifications of certain geographical areas, helps in expansion of the territories. Segmentation is a good cost effective strategy for entering a market. This is because resources will be specifically directed to the promotion of the product in that area of segmentation. Resources will not be used to try marketing products in places, where the competitor has dominated the market. Segmentation also enables the firm to maintain its customers. Customer retention is achieved, when the customers are satisfied with the products they acquire or buy from a given firm (Bhasin 2011).

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This happens if the firm keeps on tailoring the products to meet the customers’ changing tastes even as the lifestyle changes. Segmenting market ensures better communication since the channel of communication will be tailored to reach the targeted customers (Bhasin 2011). For instance, if the market is segmented to fit the college individuals, the media to be used to market and promote the products will involve the use of internet and other digital media. The segmentation of market also helps in distinguishing one customer group from the others in a specified market. This enables tapping of the right market and facilitates the firm to choose the proper target market for its products.


The risk associated with market segmentation is diversification risk. This is risk that is catered for through investing in different markets to enable the gains in one market to offset the losses of the other market (Castro 2013). The market is mostly unpredictable and, therefore, makes it hard to quantify the returns to get from a certain market unless the period is over. If the target market, therefore, fails to fully buy the products, the firm will face major losses. Another risk is that of not tapping the unintended market. Given the many types of market segmentation, it may not be possible for the firm to implement all of them, therefore, expose it to losing other markets that will not be targeted.

In 2004, H&M commissioned Karl Lagerfeld, channels designers to create the limited edition of Lagerfeld range and this included jackets and cocktail dresses. The range of the prices was offered in the U.S. and some of European countries, which were sold within the stores. Again in 2005, Stella McCartney followed the collection specializing as a British designer. The cloths sold in retail for hundreds and thousands of pounds, which were designed in forty pieces around fifteen times cheaper than their own prices. Basically, the employees were alternating part times due to customers’ demand strategy of tailoring market in the U.S. (Wakku et al. 2012).

The beneficiaries of Stella McCartney to H&M fashions were from every kind of a person, men, teenagers, ladies and even young ones. The prices are always cheap fitting for every one in the country. H&M designs is an innovative fashion company, which has currently five brands each with two thousand and fifty stores within the forty five counties in the U.S. (Wakku et al. 2012). The benefits, which are there to support my case, are that H&M customers are the heart of their business; this is because they are increasing day by day showing a lot of interest in their sustainability. H&M managers puts more efforts in making them feel confident in whatever goods they buy and makes sure that every item they purchase is with respect.

Again on their business, they offer the best quality with the best fashion price goods accompanied by the concept of sustainability acting as their core values in their places of work and this adds a lot of value in their purchasing products, hence increases the strength of maintaining customers in their business (McCartney & Lagerfeld 2011). The reason for this is to make a lot of growth in the area and have the sustainable fashions, which are accessible for every person at cheaper and reasonable prices. The vision is very clear with all their operations being economical and socially sustainable in the environment they live. H&M wants to achieve the best regardless of the challenges they face in their market industries.

The basis for the market commissioning on the H&M fashions adopts the expansion of markets in a very wide range in the part growth. It has been having a lot of expansion on the basis since the year 2007 in the process of the collection styles in London markets. During this time, market commissioning has proved a lot of popular critical evaluations to customers in opening markets and doors in maturity of the audience for the H&M. expansion of stores it’s a benefit to H&M of commission to customer.

This brought a lot of performances in the area of profit making and also acquiring their goals and objectives in their business (McCartney & Lagerfeld 2011). Effective running out of the space for its large formats brings an increase of the sizes and more cities in the area. Marketing of clothing is the most fragmented activity used in the area than before because of its high demand, which is caused by commission market approach of serving large section (Wakku et al. 2012).

Designing limited-edition clothing ranges Matthew Williamson according to H&M is associated with benefits in the format of hierarchy in the areas of strategy, where by corporate strategy benefits the company direction and generation of the growth towards management. Implementation of the plan control assists in budget cost of program and techniques used in every particular task in business. The H&M benefits from the strategies of management, which brings a lot of proactive effect in the activities done by people (McCartney & Lagerfeld 2011). This helps in the formulation of more systematic and logical plans in commissioning. In marketing H&M is a democratic fashion brand and it is not in their policy in decision of making models for fashion features in media.

Over many years, H&M has cast a wide range of diverse personalities in relation to models and personalities reflection in gender. The media planning and buying of the items in a very wind range in New York City. There is a partnership, which has been formed in H&M commissioning with David Beckham in sell of his much hyped underwear in November 2012 (Wakku et al. 2012). This has launched a fashion range with a lot of luxuries of Parisian fashion house of Lanvin. The benefit on H&M has successfully created a lot of new formats, which has a lot of distinct targets on customers.

H&M, while commissioning benefits from group economics that deals with large scales products, gets a lot of profits in the exchanges of goods in their business. Expansion of geographical areas of growth strategies brings a lot of changes in market, where stores are being established. There is a lot of potential in the expansion of fashion in the market stores, where the retails are carried out in high prices. H&M while commissioning brings a strong global retailer with a healthy margin, which should trade at broad areas with the expectation of high prices (Wakku et al. 2012).

H&M while commissioning Karl Lagerfeld, Stella McCartney and Matthew Williamson to design limited-edition clothing range have their sustainability of values to H&M products and benefits to their strength in customers. H&M while commissioning brings a strong global retailer with a healthy margin, which should trade at broad areas with the expectation of high prices. This is done by introduction of new innovative materials and techniques in garment making from different companies. Their proud is only to see H&M being the leading company in use of organic cotton (Wakku et al. 2012).

In business, both current and future challenges are experienced. Future challenges are determined based on what people would expect from a certain type of business in days to come. Fashion industry is one of the companies that must focus on future challenges as people always keep changing the dressing preferences. Being one of the most famous clothing companies in the world, H&M Company has its future challenges since market factors, such as competitors and dressing preferences among others are changing day by day.
Trade issues

One of the trade issues that would affect the H&M Company in future is the abolishment of the imports restrictions. If this happens, there will be increased a competitive pressure since the suppliers of the goods will increase (Plunkett 2008). The pressure will be acute in the H&M mother country, since there will be a high concentration of clothing materials owned by other companies from abroad . If such a situation is not rectified, the clothing market in the H&M mother country will be very open but the company’s goods will not be marketed in the countries, where the barriers on imports are still very high.

Competitive issues

Major challenges linked to competitiveness in the textile and clothing industry are mainly sparked by: emergence of international competitors, changes in the costs of production, changes in technology and (restructuring, incorporating technological processes and modernization), which is a lengthy process (Plunkett 2008). This then means that H&M Company in future will have a challenge to improve on: innovation, research and development by producing new intelligent materials and products that are highly specialized and also marketing of creative goods at competitive prices. The company also will have a challenge of updating its ICT through developing e-commerce in their enterprises. The company will also be challenged to create vocational training, create equal opportunities of employment, take care of environment, follow the recommended chemical regulations, and adhere to competitive policy and intellectual rights among others.


Day by day, the H&M Company is facing the enlargement factor due to its many products, which cannot all be sold in the mother country. This expansion compels the company to sell its products in the mother country and other countries as well (Plunkett 2008). This becomes a big challenge, when barriers on the exports are put, meaning that the company can not sell its goods abroad. If this happens, the mass production will go to loss or result into congestion in the mother country.

Industrial cooperation

The industrial cooperation can pose a future challenge in the sense that companies may form a union to search for the market of their goods, meaning that any company working solely will not fetch the advantage the ready market outsourced by the union (Plunkett 2008).

To counteract these challenges, there is a need for the H&M company to introduce measures, such as: introducing new skills and training sessions, adhering to regional and cohesion policy, adhering to industrial cooperation adhering to trade policy.

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