Marketing in the News - H&M

 

I came across an older article from 2019 regarding H&M’s transparency and whether or not consumers really care. This article really sparked my interest and I found that H&M has a history of keeping sustainability and eco-friendly processes in mind. Long story short, I concluded that as climate concerns become more relevant, consumers will likely think more about who they are buying their clothing from and what they stand for. H&M’s transparency may not make a huge difference in sales now, but consumers will remember their efforts in the long run.

I happened to find another article about H&M from March of 2021 regarding customer loyalty and Covid. Moving forward, H&M group expects those loyal customers to help turn around their losses. I included the information from the older article above because I feel it ties into current events.

The article H&M banks on customer loyalty to help turn around Covid losses (marketingweek.com) explained how the doors of around 1,800 H&M stores were shut due to Covid restrictions and the losses they experienced reflected this. However, the pandemic has not had a negative effect on members of their customer loyalty program. In fact, there was a 71% increase from the previous year in the number of members – now totaling 120 million. There have been quite a few additions to the program, including “reward points on purchases, discounts, the option to ‘shop now, pay later’, and” the opportunity to “earn points for making more conscious choices”.

Regardless of Covid, H&M is still outlining goals for sustainability and rewarding their customers for being conscious of climate change. “Loyal customers will be rewarded for brining in old clothes, choosing climate-smart delivery options, bringing their own bag when shopping, and choosing products made from more sustainable materials”.

My main takeaways from this article include:

1.       H&M, along with every other company, needs to keep pushing and move forward. I admire their focus on delivering more sustainable fashion despite the recent setbacks due to the pandemic.

2.       They used more online shopping to their advantage by improving the loyalty program.

3.       I think what they stand for is being noticed by consumers and as long as they continue on this path, I believe their company will sustain.

Why should you shop at H&M? The value proposition, in my opinion, would go something like this:

When shopping at H&M, you will feel confident in our transparency and sustainable choices at an affordable price.

There are a few relevant marketing points in this article that I noticed. First, H&M is moving forward with their sustainability goals that were outlined in the 2021 Sustainability Report that was just released last month. The group is aiming “to achieve 30% recycled materials by 2025 and reduce packaging across the value chain by 25% by 2025”. Despite recent losses due to Covid restrictions, H&M is still focusing on their goals and making sure that people know this. Second, I imagine the “significant additions” to the loyalty program were not added during the pandemic by coincidence. I believe there was an opportunity to gain more members because more consumers are shopping online and, if we’re being honest, they are probably more willing to sign up while sitting on the couch than at the checkout stand with many other customers waiting in line behind them. I do respect H&M for rewarding their customers when making “climate-smart” decisions. This ties into the third marketing point which is sticking to their values and beliefs. The article I mentioned at the beginning of this blog discussed the company’s transparency agenda. Today, if you visit hmgroup.com you can read about how they believe disclosing information about their supply chain, products and business standards and policies is so important. A quote from the website states, “Transparency has always been a key part of our sustainability strategy and we have been committed to increasing our level of transparency for many years”. H&M Group had the highest score out of 250 fashion brands in the 2020 Fashion Transparency Index. This tells me that even while navigating the company through a global pandemic, they still managed to focus on achieving goals that don’t necessarily affect their sales. For now. As I mentioned before, in the future more consumers will become aware of the climate crisis. I believe H&M and other companies who keep their values and mission clear and in focus will sustain.

The current challenge that H&M faces would be the fact that many of their stores are closed. I imagine that even if the stores were open, many consumers would be hesitant to spend much money on clothes if they already have what they need. Unfortunately, I think this company and their competitors will be combating this until things go back to normal. It seems that H&M is still focusing on their goals and moving forward. After Googling H&M’s competitors, I came across Zara ZARA United States | New Collection Online and looked into their mission statement. It is very simple, “give customers what they want, and get it to them faster than anyone else”. I am reminded of the TED Talk from Simon Sinek who said that some people just want to be first or they are unhappy. I think that H&M has an advantage because they have a more genuine approach to what they do and how they market their clothing.

I believe that H&M’s marketing approach during these current events is good. Their in-store sales declined but there has also been growth in their online sales. The company consistently uploads new posts on social media, including photos on Instagram that receive tens of thousands and even hundreds of thousands of likes. They inform consumers of sales and new products daily. Staying relevant on social media is most definitely helping H&M. If I were the brand manager, I would absolutely expect the same efforts and marketing methods. I would encourage the company to stay positive and enthusiastic and I believe that would reflect in the marketing itself.

 

I actually learned a lot about H&M that I didn’t know before. I was surprised to find that they are so aware of climate and focus on sustainability. I do think they are on the right track and will continue to gain customers over the years.