H&M SWOT Analysis

An In-Depth SWOT Analysis of H&M shows how the company overcomes the threats and weaknesses to emerge as one of the top Franchises worldwide in quality delivery.

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Founded in 1947 by Erling Persson, Hennes & Mauritz (H&M) is a world-known global company well recognized for producing high-quality garments, making it a top brand in the fashion industry. Originally, its founder established the company in Vasteras, Sweden. Currently, its head office is based in Sweden but has successfully expanded its niche by owning more than 5,000 warehouses in over 70 global countries. 

H&M is well-known for selling fashionable clothing and serving all groups of customers with their selection needs. This has made it possible for the company to acquire a substantial customer base mainly composed of young and middle-aged fashion lovers. However, it is pretty interesting that most individuals don’t know whether the company manufactures clothes. H&M does not have a production facility; the company primarily depends on Asian top suppliers to get its products. In addition, the company uses it as a secret to maintain a stable stream of new commodities at a flexible pace, affordable prices, and a well-known fast-fashion strategy. Thus, it is a fascinating idea to discover the company’s SWOT analysis to discover how it stands out and is unique. 


H&M’s Strengths 

H&M can be specifically identified for its following unique strengths: 

Diversified Products 

In the past, H&M concentrated on commercializing women’s linen. However, after expanding its product offerings, it offers something for everybody. Further, it has gone the extra mile of selling accessories rather than clothing. Also, in almost every warehouse, H&M sells shoes, cosmetics, home décor, and other linen. 

Fast Fashion Strategy 

The fast-fashion strategy is a new term in the commercial clothing sector. Typically, it implies the places where the company quickly tracks manufacturing and dispatches a new selection to the market bi-weekly. Also, it provides its customers with new options whenever they visit the warehouses. This almost resembles the typical seasonal production method that involves a waiting time of 4 to 6 months before a new brand collection is released. 

Affordable Pricing 

This Swedish trademark does not have individual production facilities. Alternatively, it collaborates with multiple vendors that offer H&M high-quality clothing at a low labor cost. Although some may dislike this capacity failure to control production, this cost-effective system enables them to sell goods at the most affordable prices. 

Community-Oriented Approach 

Since its foundation over 65 years ago, H&M has constantly maintained a community-oriented culture, both within and when associating with customers. It is genuinely associated with the community and gets an active decision when it is an alarming issue they feel strongly about. 

Wide Global Reach 

H&M makes every feasible effort to acquire a global market. With over 5,000 stores within 6 continents, H&M is well represented in over 70 countries. Notably, it retains the international market and constantly broadens its target by acquiring new markets. 

Powerful Online Process  

H&M possesses a significant eBusiness strategy that fully contributes to the online market. In addition to its official website, the company has third-party plans to acquire more online customers and acquire substantial eBusiness sales. 

Well-Organized Supply Chain 

One of the significant merits of collaborating with many suppliers is a low chance of possessing low supply issues. H&M maintains its stock level to provide its present contributions. In addition, it quickly resolves all supply problems it encounters. 

H&M’s Weaknesses 

Here are the notable weaknesses evident in H&M fashion company: 

Fashion Conformity 

H&M sells high-quality and trendy clothes, but they almost resemble current trends. Mostly, multiple items are designed to track present fashions. Also, most items are designed after other producers’ designs. However, they don’t have a unique design that shows a peculiar H&M look. 

Excessive Outsourcing 

Unlike other top rivals in the fashion industry, H&M subcontracts all the linen. This tactic has benefits, but it confines the brand’s control in the production process. Also, problems arising in the suppliers’ operations can translate to problems in the company’s sales and activities. 

Controversial Designs 

It may occur once in a while; however, it can be frustrating to leave the 2018 incident wherein H&M created a hoodie design with the label “Coolest Monkey in the Jungle” that had a black child on the model. Later, after being criticized for racism and global boycotting, H&M must have learned about becoming more careful when approving cloth designs. 

H&M’s Opportunities 

H&M has the potential to grow through the following: 

Brand Expansion 

H&M has developed a strong reputation as a high-quality apparel brand. If it may start suddenly selling products outside this circle, for instance, second owned sporting and clothing goods, it can mislead its customers, which can end up decreasing the overall sales. However, it has the potential to grow through acquisitions and mergers. 

Enhanced eCommerce Strategies 

Over the years, the online shopping habit has been continuously growing, but after the intercept of the pandemic, multiple individuals discovered the advantages of online shopping. Although H&M has been intensively incorporating such marketing tactics, the company has a chance to enhance its online market to move with the trends of the faster-growing development rate. 

Emerging Market Trends 

Typically, H&M and other fashion retailers concentrate on the exclusive class market. However, multiple emerging market trends demonstrate a significant capacity for sales and can help the company concentrate on such prospects. 

H&M’s Threats 

H&M is at great risk due to the following: 

Imitations and Counterfeits 

The fashion industry is continuously growing imitated and counterfeit products. Due to such a substantial increase, the H&M commercial products are considerably at great risk of falling in terms of sales. 

Increased Competition  

The commercial fashion industry operates in a market composed of rivals. Thus, H&M, like other companies in the sector, has a mandate to cope with such problems to stand unique. 

Increased Production Costs 

Over the years, the cost of raw materials and labor has constantly increased. This uncontrollable factor can, in turn, reduce H&M’s profitability on its products. 

H&M’s SWOT Analysis Mind Map 

To complete our comprehensive H&M SWOT analysis, a mind map can be helpful to show us the pictorial presentation of the company’s strengths, weaknesses, opportunities, and threats. Thus, the mind map is represented as shown below: 


  • Diversified products 
  • Fast fashion strategy 
  • Affordable pricing 
  • Community-oriented approach 
  • Wide global reach 
  • Powerful online process 
  • Well-organized supply chain 


  • Fashion conformity 
  • Excessive outsourcing 
  • Controversial designs 


  • Brand expansion 
  • Enhanced eCommerce strategies 
  • Emerging market trends 


  • Imitations and counterfeits 
  • Increased competition 
  • Increased production cost 

Key Takeaways 

Since its incorporation, H&M has served for over 65 years and has created a unique stand in the global market by offering the most trusted and reputable fashion brands. In our comprehensive SWOT analysis of the company, we have identified that its strengths exceed its weaknesses. Thus, it is an easy task for the brand to improve its strengths to maximize the opportunities that are tabled to it. In addition, it faces simple threats that cannot limit the company from standing out from other rival companies. 

Using this comprehensive SWOT analysis, we can quickly get the company’s corporate strategies and get a vivid description of the company’s operations. Thus, you can create a unique strategy for your company to stand out from the crowd. It can be helpful to get this comprehensive report download on your computer or smartphone in PDF Format. Thus, you can consider using one top-rated PDF software named PDF Agile; the affordable software will provide you with your PDF needs without any limit. It is designed to serve all customers best without any problem.  


 https://www.edrawmind.com/article/hm-swot-analysis.html  https://bstrategyhub.com/hm-swot-analysis/ https://www.swotanalysistemplate.com/hm-swot-analysis/ https://swothub.com/hm-swot-analysis/ https://pestleanalysis.com/hm-swot-analysis/ 

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