H&M Brand Audit


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  • The targeted consumers are fashionable females who are highly concerned with their personal
    style. They are between the ages of 17 and 26 and typically shop at four or more stores. These
    females consider themselves fashionable/trendy and are looking to update their wardrobes with
    current trends. They want their style to be unique and consistent with their own personal selfexpression,
    but still adhere to current-season trends. The target audience wants quality clothing
    that lasts seasons beyond its purchase date and demands fast-fashion in order to keep up with
    current trends.
    Moreover, these women are looking to purchase affordable, fashionable clothing and want to
    expand on their current wardrobe with clothing, accessories, purses, and shoes to provide them
    with a variety of looks. The consumers are not highly brand loyal; rather they shop at multiple
    retailers in search for the perfect fashion pieces. They shop anywhere from four to six stores on
    average. The target consumer values price, high product quality and a large variety of apparel.
    They like retailers with loyalty programs and good customer service.
    The target consumer reads fashion magazines and owns a smart phone. When the consumer goes
    into a store, she has the intent to shop and is interested in expanding into mobile retailing.
    Additionally, her friends’ opinions are very important to her and she is heavily influenced by
    word-of-mouth. She is interested in every detail of her outfit, from her nails to the shoes on her
    feet. Every piece of her outfit has been carefully selected to establish an updated fashionable
  • “One of the keys to H&M’s success is our strong values. The H&M Spirit has been a cornerstone of the company ever since the very first store opened in 1947.”
  • Easy to pronounce, to recall, to recognize, to spell…
    Most important elements are being memorable and adaptable (Leif Spang)
  • Red = warm + outstanding + noticable
    Handwriting = warm + welcoming
    Slogan = Fashion and quality at the best price
    Packaging = Plastic, cheap bags with a clearly seen logo
  • Brand elements are always the same in every country and they are adapted only if culture is too heavy to suit the elements. (Arabic countries – bikini advertisements)
  • David Beckham
    Claudia Scheffer
  • COS
    Modern, timeless, tactile and functional. Exploring the concept of style over fashion, COS offers fashion pieces for the contemporary wardrobe. Here, high-end design and quality that lives beyond the seasons is available for women, men and children.
    COS is available in 20 countries, and retails online in 18 European markets.

    Monki is a fashion experience – clothes, accessories, and a store concept characterised by playfulness, creativity and colourful graphic design. The brand’s individualistic streetwear is aimed primarily at young women, but Monki is about personal style for all ages.
    The Monki collections are available at stores in 12 markets as well as online in 18 European markets.

    Fast-forward, Urban & Humble. Weekday is a jeans-focused fashion destination, offering contemporary designs at great prices. WEEKDAY carries in-house brands such as MTWTFSS WEEKDAY and Weekday Collection as well as external brands like Cheap Monday, Rodebjer, BACK and Whyred.
    Find WEEKDAY stores in 7 countries and online sales in 18 markets.

    Cheap Monday
    Cheap Monday’s collections combine influences from street fashion and subculture with a catwalk vibe. At the core of the brand is the on-trend denim range, completed by clothing and accessories with a high-fashion feel. All at prices to suit almost any budget.
    Cheap Monday is available through selected retailers around the world, as well as from its own stores and online in 18 European markets.

    & Other Stories
    & Other Stories was launched in March 2013, offering an extensive selection of clothes, shoes, bags, jewellery and cosmetics. The brand is all about fashion, with particular focus on quality and design details as well as personal expression and styling.
    & Other Stories initially opened in Europe with stores in 7 countries and online sales in 10 markets.

  • Different prices for Consciouss products
  • Men wants = trendy + cheap
  • H&M Brand Audit

    1. 1. H&M Brand Audit Project Zeynep Çıkın Berk Sarıca Alperen Sözen
    2. 2. Content • Textile Industry and Fast Fashion in Turkey • History of H&M • H&M Collections • Brand Hyerarchy • POPs and PODs • Positioning • Brand Elements • Brand Associations • Secondary Brand Associations • Brand Marketing (4P) • Recommendations • References
    3. 3. Textile and Fast Fashion Industry in Turkey • Turkey’s Textile and Clothing industry is regarded as a locomotive industry. • Textiles and clothing are among the most important sectors of the Turkish economy and foreign trade. Accounting for about 7% of the GDP together, these two sectors are the core of Turkish economy in terms of GDP contribution, share in manufacturing, employment, investments and macroeconomic indicators. • These sectors had a 18,3% share in total export volume in 2013. According to Social Security Institution statistics, there are more than 52,000 textile and clothing companies in Turkey with more than 918,000 employees.
    4. 4. • Yargıcı • Mavi • Gap • Ykm • Boyner • Marks & Spencer • Vakko • Benetton • Polo Garage • Faik Sönmez • Accessories and Euromoda Group •Inditex Group •(Zara, Bershka, Massimo Dutti, Pull and Bear) •Mango •H&M •Koton •Diesel •Ipekyol •Adil Işık •Defacto •Kığılı •Altınyıldız •Park Bravo Group •LCW Fast Fashion Retailers In Turkey
    5. 5. History of H&M • 1947 The first store opens in Västerås, Sweden, selling women’s clothing. The store is called Hennes. • 1952 Hennes opens in Stockholm. • 1968 Founder Erling Persson buys Mauritz Widforss, a hunting and fishing equipment store. Sales of men’s and children’s clothing begin. The name is changed to Hennes & Mauritz • 1990s Progress continues in Europe with the opening of the first store in France in 1998. Newspaper and magazine advertising is complemented by outdoor advertising featuring famous models. In 1998 H&M online shopping begins. • 2004 H&M initiates designer collaborations starting with Karl Lagerfeld. More collaborations follow with Stella McCartney, Viktor & Rolf, Madonna, Roberto Cavalli, Comme des Garçons, Matthew Williamson, Jimmy Choo, Sonia Rykiel, Lanvin, Versace, Marni, David Beckham, Anna Dello Russo, Maison Martin Margiela and Isabel Marant.
    6. 6. History of H&M • 2006 A major expansion of online and catalogue sales begins with the Netherlands as the first market outside the Nordic region. The first stores in the Middle East open via franchise. • 2010 The first H&M stores in South Korea and Turkey open. Israel becomes a new franchise market. Online shopping starts in the UK. The first H&M Home stores open outside Sweden. Monki moves into Asia with a store in Hong Kong. H&M becomes the world’s largest consumer of organic cotton and continues to increase its use of sustainable materials in the following years. • 2012 H&M opens in Bulgaria, Latvia, Malaysia and Mexico, and via franchise in Thailand. COS opens in Finland, Italy, Poland, Hong Kong and Austria, and opens via franchise in Kuwait. The Monki brand grows in China and Weekday opens in the Netherlands. • 2013 The first H&M store in the southern hemisphere opens in Chile. H&M also opens in Estonia, Lithuania and Serbia. Indonesia becomes a new franchise market. H&M introduces online shopping in the US. The & Other Stories brand is launched in several European countries. COS, Monki, Weekday and Cheap Monday also open in new markets. Weekday and Cheap Monday launches online shopping. A global clothing collecting initiative starts in selected stores.
    7. 7. • H&M exists in 53 countries and as of 2013, employed around 116,000 people with 3,200 stores. • It is ranked the second largest global clothing retailer, just behind Spain-based Inditex (parent company of ZARA), and leads over third largest global clothing retailer, United States based GAP Inc. H&M
    8. 8. H&M • The branding consultancy Interbrand ranked the company as the twenty-first most-valuable global brand in 2009 and 2010,makin it the highest-ranked retailer in the survey. Its worth is estimated at $12–16 billion. • Sales during the period 1 March – 25 March 2014 increased by 12 percent in local currencies compared to the same period the previous year. • First store in Turkey opened in 2010 (Bayrampaşa Forum AVM)
    9. 9. H&M • H&M does not own any factories, but instead works with 900 independent suppliers, mainly in Asia and Europe. • In 2013, the turnover including VAT increased to SEK 150 billion. • H&M’s growth target is to increase the number of stores by 10–15 percent per year and at the same time increase sales in comparable units. The growth is entirely self-financed. • Online shopping is available in several European countries and in the US. H&M sees potential for online sales in all markets. • Quality is key for H&M – from initial idea to final product.
    10. 10. H & M Stores in Turkey • 2014 - There are 22 Stores in Turkey; • Istanbul (12)– Ankara (5)– Antalya (2)– Samsun (1) – Gaziantep(1) – Antakya (1)
    11. 11. H&M COLLECTIONS • Women • Men • Kids • Divided • &Denim • Accessories • Underwear • Cosmetics • H&M Home • Sportswear
    12. 12. H&M Brand Hierarchy
    13. 13. H&M Sales in International Markets
    14. 14. •Current segment is defined as; Teenagers and young adults(ages between 17-26) Men, Women and Children Teenage girls and young women are highlighted •Target Market is; Everyone who define themselves as hip, looking forward to change the wardrobes to be trendy and follow the latest fashion themes.
    16. 16. • POPs Being Stylish Central Locations Being Fashionable • PODs Store Sizes Usage of Celebrity and Endorsers Koton is perceived more suitable to Turkish culture H&M is young and active whereas Koton is classic and serious. • Desirability H&M is more desirable in terms of being hip, modern and trendy where Koton is more desirable being formal. • Deliverability H&M - Limited locations in non- suitable malls for the target market Koton – Lots of locations in central malls and outlets
    17. 17. H&M Company Core Values • Believe in people • One team • Straightforward and open- minded • Keep it simple • Entrepreneurial spirit • Constant improvement • Cost-consciousness Perceived Values of H&M • Customer oriented • Good showcases • Cost – consciousness • Always new • Always trendy • Helpful
    18. 18. Brand Elements • Memorable • Meaningful • Likable • Transferable • Adaptable • Protectable • Short+Simple (brand name) • Geographic boundries, culturel adaptations, categories • Legally owned by founder online and offline
    19. 19. Brand Elements Logo Brand name Slogan Packaging
    20. 20. • Global printed advertisements • Price can be seen all the time • White or beige backgrounds • Localization on language and currency
    21. 21. • Social Media and digital activities in Turkey is held by Buzz Interaction • Competitor Koton also works with Buzz Interaction
    22. 22. Secondary Brand Associations H&M Designer collaborations • 2004: Karl Lagerfeld • 2005: Stella McCartney, Elio Fiorucci, Solange Azagury-Partridge • 2006: Viktor & Rolf • 2007: Roberto Cavalli • 2008: Rei Kawakubo and Comme des Garçons • 2009: Matthew Williamson, Jimmy Choo, Sonia Rykiel • 2010: Sonia Rykiel, Lanvin • 2011: Versace • 2012: Versace, Marni, Maison Martin Margiela • 2013: Isabel Marant
    23. 23. Secondary Brand Associations Style icon collaborations • 2006: Madonna • 2007: Madonna, Kylie Minogue • 2012: David Beckham • 2012: Anna Dello Russo • 2013: Beyoncé
    24. 24. Secondary Brand Associations • H&M Home • COS • Monki • Weekday • Cheap Monday • &Other Stories
    25. 25. Co-Branding
    26. 26. Co-Branding
    27. 27. Brand Marketing • Product • Price • Place • Promotion
    28. 28. •USA: 20 – 30 USD •ASIA – PACIFIC: 40 – 55 USD •TURKEY: 40 – 80 TRL PROD UCT PRICE PLACE PROMO TION •Some malls far from the central locations (Beylikdüzü, Bayrampaşa, Esenyurt) • 319 Turkish companies •Direct distribution •Central buying •22 Points of sale in Turkey •Accesories, Tops, Jeans, Underwears, Shoes, Sportswears •Good quality •Organic fabrics, cotton, recycled wool, organic silk, organic leather, organic hamp, lyocell, rcy. plastic •Return in 15 days •Product change •Tailor service •Celebrity Endorsements •H&M Loves OneLove •Twitter and Facebook •Virtual Dressing Room online •Product replacement on local shows •More active on Twitter, less on Facebook
    29. 29. Recommandations • New retail stores in more central and hip locations (Beşiktaş, Kadıköy, İzmir – Bornova?) • Same loyalty programs in Europe should be applied in Turkey • Local celebrity endorsement • Sponsorhip programs on local TV shows • Launching H&M’s Fashion for AIDS Prevention • Expanding variety of products for men • New prime product line should be launched in Turkey in order to compete with Indietex group
    30. 30. Recommendetions
    31. 31. References • H&M Store Locations, 2014, retrieved from http://www.hm.com/tr/store- locator • About H&M, 2014, retrieved from http://about.hm.com/en/About/facts- about-hm/about-hm/hm-group.html • Türkiye Dijital Ajanslar, 2014, retrieved from http://sosyalmedya.co/turkiyedeki-sosyal-medya-ajanslari/ • Brand Associations Research, Sözen A.&Sarıca B., 02.04.2014, not published • H&M 4P’s, Teero M.H., 08.05.2013, retrieved from http://prezi.com/egkz9kfl24vo/hm-brand-audit/
    32. 32. Thanksforyour time. AnyQuestions?