Consumer Targeting and Evolving Market Dynamics in H&M Fashion Brand a Full Analyses by Rapid Assignment Help
Consumer behaviour refers to the study of people, groups or firms along with all the activities related to the purchase, utilisation and disposal of products & services. It covers how the emotions, behaviours and preferences of the consumer impact the buying behaviour. H&M, a leading global clothing company, operates in all over the world has been chosen for this report. The company was founded in 1947 and it’s headquartered in Stockholm, Sweden (H&M Group, 2024). H&M is one of the leading fashion brand and sells the wide range of products including clothing and accessories. H&M is highly popular among the people worldwide and they use excellent marketing strategies to grab the attention of global customers. Marketing strategy of H&M revolves around its dedication to provide fashion-forward clothing. The firm uses the fast-fashion model, making sure that consumer always discovers something new and appealing. H&M uses the social media platforms such as; Facebook, Instagram, X (Twitter) and YouTube to market their products. Collaboration with the famous designers and influencers is the great marketing strategy of the company. H&M applies search engine optimisation marketing technique to increase its website traffic as well as sales. Email remains an important marketing strategy for H&M. Additionally, the makes video content to inform about new launches to audience.
The target audience of the firm is women and men aged 18–35. However, H&M mainly targets young people who are interested in new fashion by offering high-quality and latest branded clothing. The company also focuses on middle-class customers by providing products at competitive prices. This report will explain the major consumer trends and societal changes that are affecting the marketing strategy of the brand. Further, it will analyse consumer behaviour in relation to the company. Additionally, some relevant recommendations for H&M to enhance its marketing strategy will also be provided here, with insights supported by Online Assignment Help in UK.
Main Body
Consumer trends are basically new behaviour, opinions, expectations or attitudes. There are some major key consumer trends such as digital consumers, financially-squeezed consumers and critical consumers that highly impact the marketing strategy and target market of the H&M. There are details of each consumer trend which also involved in the wider societal context that affect behaviour of consumers.
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Digital consumers: Nowadays, online shopping is rapidly growing and most of the customers are doing their shopping from online platforms. The development in online shopping is one of the major reasons behind struggle of high streets and it also affects the H&M business. In UK, online shopping has been growing sharply since 2006 (ONS, 2024). Though, Covid-19 pandemic accelerated this consumer trend which increases the online retail sales. However, to cater the new demands of customers, the company has introduced the e-commerce platform and meet the needs of target market. The company offers the products for men and women regardless of their race, ethnicity, culture and background to maintain the inclusivity.
Critical consumers: A development in critical consumers also impacts the H&M marketing strategy and affects their sales. There are numerous customers that provide support to the companies according to their ethics and values. Customers not chooses the company that operates business unethically. Manufacturing companies are responsible for greenhouse gas production which increase problem of climate change that does not impact environment but society (Machireddy, 2022). People have changed their preferences and give importance to ethically-manufactured products. They only buy products from those company that follow sustainable approaches. Although, H&M has maintained their values and ethics and uses sustainable practices that attracts people.
Financially-squeezed consumers: It is a consumer trend that has an immense impact on the clothing business like H&M. Cost-of-living crisis is a kind of socio-economic situation or factor which increases the cost of goods because of high inflation. Many people cut down on expenses and only buy essential things. This highly affects the sales and revenue of the H&M because they prefer food products at first place than clothing. Almost, 91% of customers of UK are concerned regarding increasing cost of living (Consumer Council, 2024). People started reduce their shopping expenses due to budget problems. Although, H&M highly focuses on their product prices and offers clothing as well as accessories in competitive prices. Therefore, customers do not need to compromise with their fashion needs.
There are numerous theories related to consumer behaviour that is elucidated below:
The self-determination theory
The theory is basically based on concept that individuals have three basic mind-set or psychological needs such as; relatedness, competence and autonomy. Autonomy is explained as requirement to have authority over someone’s own life, whereas; competence means need or requirement to feel competent as well as efficient in one’s activities (Gagné et al, 2022). Additionally, relatedness can be defined as the need for affirmative social interactions as well as relationships. According to theory, an individual is most motivated or influenced when their fundamental psychological needs are fulfilled.
The theory of planned behaviour
The consumer theory is based on notion that person’s intentions and purposes are affected by their behaviours, subjective norms as well as their perceived behaviour. The theory of planned behaviour is utilised to realise and predict behaviours that postulates that behaviours are instantly determined through behavioural objectives and under specific circumstances (Alhamad and Donyai, 2021). Perceived behavioural control is defined as evaluation of complexity or ease of an individual of doing a certain action. The theory is highly significant as it is utilised by marketers to predict and know the behaviours of consumers. With the help of theory, marketers plan their strategies to promote brand and its products and services.
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The social identity theory
The theory describes group phenomena on the basis of social context, identity, norms, status and categorisation. It is based on ideas that self-concept of an individual is moderately derived from their membership or association in social groups (Steffens et al, 2021). According to social identity theory, individuals tend to see members of social groups in a positive manner and can even embrace values, attitudes and beliefs of that social group as their own. Social identity model predicts the behaviours in a group according to the perceived group status that impacts the sense of self.
H&M is leading fashion company that sells the large range of clothing in all over the world. As the company operates worldwide, H&M highly focuses on their marketing efforts or strategy to stand out in the competitive and globalised business world. Marketing strategy of H&M is based on several fundamental principles that cover sustainability, vogue and affordability. These three core principles are incorporated with their strategic use of digital marketing methods such as; search engine optimisation (SEO), pay-per-click (PPC) and social media marketing (SMM).
Search engine optimisation (SEO)
The marketing team of H&M uses the self-determinant theory while making the advertisements and campaigns. By aligning with theory, the company promotes a sense of competence, relatedness and autonomy which is more appealing to target customers. H&M sells wide range of products on online platforms and market their products by SEO marketing strategy. The firm offers the high quality products and show actual products on their website.
SEO is a crucial part of digital marketing strategy of the company. The firm manages their websites and content for the search engines so that H&M appear highly on related keyword searched outcomes. Nowadays, if a person wants to buy something they first use the Google and search about their desire products (Digital Agency Network, 2025). For example, customers often click on websites which appears on first page and rarely go to second and third page. H&M know this fact and set their keywords in a way that highly search by people. It enhances ranking of website on search engine sites at the same time it also improves brand visibility as well as credibility (Ahmad, Mahdee and Bakar, 2024). Effective SEO practices make it stress-free for potential customers to find H&M because the firm ranks higher on search result page. Through regularly update their SEO related strategies based on changes in search algorithms, H&M remain competitive in online marketplace.
Although, the company uses best practices but sometimes they fail connect with customer on personal level. Because of lack of strategies, it negatively impact the relationship of customers with brand that directly affect the sales. As the customers can choose other companies over H&M. It means the company focuses less on relatedness compare which can reduce the brand loyalty.
Social media marketing (SMM)
The theory of planned behaviour is implemented by the H&M to predict the behaviour of the target customers. By conducting market research, marketers identify the factors which shape customers intentions such as; attitude, subjective norm along with perceived behavioural control. By knowing factors, H&M makes the social media marketing campaign with aim to change the audience behaviour.
SMM is crucial component of marketing strategy of H&M. The company upholds a strong presence on different social media channels like Facebook, Twitter, Pinterest and Instagram. The marketing of firm make relevant, attractive and compelling posts and videos and share on different platforms (Balova et al, 2022). With the help of the social media platforms, the company reaches wider audience worldwide. For instance, nearly all people use the different social media platforms daily for entertainment purpose. On social media channels, they also see different products and services promoted by the businesses and they easily get attracted from advertisement. It influence their behaviour and they make decision regarding purchasing. H&M leverages this approach and collaborate with popular influencers and celebrities who promote their brand and products (Laradi et al, 2024). The company also shares behind-the-scene looks as well as interactive stories that keep their followers excitedly waiting for new posts. It help the company to increase sales and generate high revenue by fulfilling the customer’s needs.
However, some people still not make buying decisions by only seeing products on social media platforms. Before making decisions regarding purchasing they do lot of research about product and when they feel satisfied, they buy products. On the other hand, they change their decisions; if they do not like the product because people do not want to misuse spend their money on products which they do not like.
Pay-per-click advertising (PPC)
By using social identity theory, the company appeals to social identities of consumers through making the advertisement which feature member of group as well as through utilising language and images which is specific to group. By PPC advertising method, the company aims particular advertisements at targeted audiences that increase traffic on website and conversions. H&M uses the platforms like Google Ads, social media promotion etc. to enable reach to target audiences who are looking for clothing products or searching related content online (Agarwal, 2021). When the company makes PPC advertisements, they utilise the different images, appropriate language and logos which is precise to group.
Every detail regarding PPC campaigns is cautiously thought out so that only excellent results are accomplished from them. The firm utilises data analytics method to track performance of advertisements so that H&M can make essential modifications to make sure they reach right audience. For example, when people search about any product, it appears on Google search page (Björnfot and Dehlin, 2023). They click on the paid advertisements when they find it relevant. By clicking ads, customers directly reach company’s website where they find different products and relevant content that convince them to buy products. It facilitates to generate high level of website traffic which leads to brand recognition.
However, the theory of social identity has some negative consequences. For instance, some logos and images which used by the company for marketing can create the issues of discrimination among the particular group. It is crucial for the company to make advertisements so that it could not hurt the values and sentiments of the customers. When, the firm is targeting specific social group by campaigns, they should maintain the ethics and moral values.
Email marketing
Email marketing is another marketing strategy which is used by the H&M for promotion. The marketing team gathers subscriber emails by utilising sign-up form which involves personal information like email, passwords, date of birth and other contact information. The company makes the personalised emails with excellent and attractive subject line (Haudi et al, 2022). The company also include the call to action option so that customers who are interested can click on call to action and directly reach company website. Align with the self-determination theory, the company sends emails that motivates the customers to buy products. By using technology, the firm track the perceptions and needs of customers and then advertisement that exactly match their needs.
For instance, when a company sends personalised emails to customers which created based on their attitudes, then it influences their decision-making procedure. The company creates emails in a way that turn visitors into final customers. Email marketing is best way to connect with the target audience and boost sales. It provides high ROI (return on investment) and allow direct access to customers. Though, it is quite difficult for the company to gain attention of the people if their emails are not targeted to right people. It can adversely impact the marketing strategy and can reduce the number of customers. It is also important to note that email marketing follows the data protection regulations to avoid the legal complications.
Conclusion
As per above report, it can be said that behaviour and attitude of the consumers play a vital role for businesses including clothing business. It has analysed that the current consumer trends highly impacts the marketing efforts of the company. It involves digital consumers, critical consumers and financially-squeezed consumers. Customers are now doing most of the shopping from online platforms which shift the marketing efforts. Socio-economic factors like cost-of-living crisis influence customer buying behaviour. When consumer started to cut down their shopping expenses, it directly affects the business sales. In addition, it has discussed that H&M utilises the digital marketing strategies like email marketing, SMM, SEO and PPC to attract and retain customers and achieve higher position in the market. The self-determinant theory, the theory of planned behaviour and the social identity theory are relevant theories that help to know the why consumer make buying decision and how a company can influence decisions buy marketing strategy.
Recommendations
From above analysis, it has analysed that because of rising competition, H&M has to enhance their marketing strategy. There are few recommendations for H&M sin order to enhance their marketing strategy.
References
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