The document summarizes a presentation for H&M that proposes a new strategy to differentiate the brand from competitors. It recommends splitting H&M into separate Basics and Fashion lines. For the Fashion line, it suggests crowdsourcing designs from customers and positioning H&M as a leader rather than follower of trends. As an example, it outlines a plan to source basketball shoe designs from the public and promote the winning design globally through partnerships and marketing. The goal is to empower customers and establish H&M as uniquely authentic rather than just copying designer looks.

1. A(P)STOW CHALLENGE:
H&M RFP
Presentation by Matt
Leader

2. Who are we talking to?
Typical H&M customer is a
fashion-forward but cost-
conscious 20-something
professional or student.

3. What do they care about?
• The good: H&M seen as young
(88%), trendy (81%) and
inexpensive (94%)
• The bad: H&M products are seen
as low-quality (68%) and the
in-store experience as
“chaotic” or “unpleasant”
(27%).

4. Where else are they
spending money?
In addition to H&M, our shopper
frequents ZARA, Topshop and
Forever 21 for fast-fashion
items, The Gap & J. Crew (and
where available, UNIQLO) for
basics, and aspires to shop at
upscale boutiques or lower-end
design houses.

5. Basic Problem:
How different is H&M from the
competition?
“Not Much” – 82%

6. RFP touchstones
fun
drama
energy
uniqueness
spontaneity
fascination

7. Heart of the RFP:
Needs
To Be More
Interesting.

8. What Won’t Help
Already highly
More “youthfulness”
associated.
More “designer Already highly
trendiness” associated.
Already highly
associated.

9. Goals:
Break the Fast
Fashion
Follower
Model.
Associate H&M
With “Style
Leadership”.

10. Method:
1. Focus. Clearly delineate
between H&M Basics line and
H&M Fashion line – through
branding and in stores.
2. For the fashion line, reverse
the top-down designer-to-
customer paradigm.
3. Position H&M as uniquely
authentic.

11. Step 1: Focus
• Split fashion items from
basics.
• H&M Basics: “Everyday
Standards.”
• Create separate
identity, dedicated areas in-
store.
• Easy to make and design.
Small improvement in quality
and price can draw customers
from competition.

12. Step 2: H&M Fashion -
Upend the fast-fashion
model

13. Current Fast Fashion
Model:
Copy or co-brand designers’
latest looks; hope trend-setters
adopt them.
New H&M Fashion Model:
Crowdsource trend-setters and
let them identify/set styles.

14. H&M can find and empower
these trendsetters by having
the public submit design or
collection ideas that are
voted on in-store and on the
web.

15. H&M’s fashion line is thus
pre-determined to be cool by
a majority of customers; the
brand is seen as a leader
rather than a follower; it
gains authenticity by being
grassroots rather than top-
down; and the range of
designs and collections will
be unique and interesting.

16. The first design challenge
will be a pair of basketball
shoes.

17. 3 ways to bring Style
Leadership to life
(while selling a million
pairs of shoes)

18. A. Make it Pinteresting
Designs for shoes will be
accepted in-store and on the
web. Once chosen, the
winning shoe will feature on
H&M’s new Pinterest-like
site, where customers are
given the whole range of H&M
goods online and invited to
put together that season’s
collection around the shoes.

19. B. Take it to the
Global Court
H&M can partner with
international basketball
leagues and have different
teams wear the various
winning H&M shoes on the
court and in ads worldwide.
Rather than the NBA, which
requires huge branding
investment and offers only
US-style urban cool, this
approach adds international
flair on the (relative)
cheap.

20. C. Change the Context
Would the Pope wear a pair
of H&M hi-tops if $3m were
donated to a children’s
charity?
You never know.

21. Step 3: Positioning

22. The key message is that H&M
doesn’t tell you what to
wear. It empowers you to
find and create what you
want to wear.
H&M helps you be you.

23. “Design
Your Life.”
“Step up.
Stand out.”
“Fashion
Yourself at
H&M.”

24. 5 Questions for H&M

25. 1. 94% of target customers do not associate basketball
with “cool”. That’s a big hill to climb. Are you
open to a strategy that believes that basketball
shoes are the wrong fit for the brand?
2. What one fashion item in this year’s line most
embodies H&M?
3. How important is product quality to you? How
important do you think it is to your customers?
4. How much has each designer collaboration increased
your net profit, on an aggregate and per-piece
basis?
5. How do you see H&M’s market position in five years?