Hennes & Mauritz AB, commonly known as H&M is a multinational clothing retail company which deals with fast fashion clothing. It was founded in 1947 in Stockholm, Sweden and has now stores all around the world in more than 4500 locations. The brand has been growing ever since its establishment, not only in terms of global expansion but also in terms of product portfolio expansion. Their target market includes all age groups and that is what makes them a fast fashion brand for everyone.
The brand equity of H&M has grown over the years and it is safe to say that H&M enjoys high brand equity today in the industry of fast fashion clothing. There are certain aspects to it though:
Brand Awareness
The vision of H&M was not to operate worldwide at first, but since it received an immense response in Sweden and the brand awareness was amazing, H&M started to expand its product portfolio as well as expansion of their company in other countries. With that expansion, there was an increase in their brand awareness as well. The extent of awareness of H&M can also be viewed by the fact that it was ranked at number 23 in the 2017 list of Best Global Brands and has gained ranking in numerous global lists that show that awareness of their brand has increased over the years.
Brand Loyalty
Their target market is very diverse and since it is not an exclusive brand that only a certain group of people can afford, it works for their advantage in terms of gaining consumer loyalty. The value of H&M is very high and since they offer their products in a diverse and affordable range, most of their consumers are expected to engage in continuous buying thus making them loyal to the brand. Moreover, H&M also offers loyalty cards for these customers so that they maintain long term relationships.
Brand Image
The brand has worked towards maintaining their image in the consumer’s mind in terms of developing value for their brand. In the past decade, H&M has also worked on developing an image of being sustainable brand. So they want their customers to perceive H&M as the brand that provides best price in a sustainable way. They always promote this through their advertisement and also marketing ethical manufacturing and selling. It can be said that they have been half successful in making their customers perceive their brand in that way and with the kind of promotions they do, it will increase their brand equity as well.
Brand Elements
Since H&M has been communicating about the brand in the right way since their establishment, it has been successful in making their consumers identify their brand through their brand elements all around the world. The most important element of the brand is their logo, which has been consistent everywhere. Most of the people around the world can identify what brand is being represented through their logo. This kind of advantage is enjoyed mostly by the brands that have been in the market for a long time, thus they are identified easily which show that they have high brand equity.
References
H&M. Retrieved March 12, 2018, from https://www.rankingthebrands.com/Brand-detail.aspx?brandID=36
H&M Brand Report. Retrieved March 12, 2018, from https://issuu.com/beckymajor8/docs/h_mmagazine2
Markets & expansion. Retrieved March 12, 2018, from http://about.hm.com/en/about-us/markets-and-expansion.html
Zaczkiewicz, A. (2016, June 8). Nike, Zara and H&M Garner Top Spots in Brand Value Ranking. Retrieved March 12, 2018, from http://wwd.com/business-news/marketing-promotion/nike-zara-hm-most-valuable-brands-list-10447288/