Ansoff Matrix of H&M

H&M Group is a fast-fashion and retail clothing Sweden Multinational Corporation. Erling Persson founded the fast-fashion company in 1947. Today, we’ll discuss the Ansoff matrix of H&M; and its four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification growth strategy of Ansoff matrix business example.

Elements of Market Penetration Strategic Campaigns of H&M

• Implemnting the fast-fashion strategic approach
• Communicaton, engaging, and connecting with target custoemrs
• Integration of fashion-forward designs and styles
• Social and digital media channels and platforms
• Collaborating with influencers and public figures

Top Selling Markets and Geographcial Regions of H&M – in billion Swedish Krona

• Poland – 5.993
• Switzerland – 6.146
• Canada – 6.172
• Netherlands – 6.185
• Italy – 7.080
• Sweden – 8.286
• France – 10.285
• UK – 16.338
• Germany – 31.634
• USA – 33.406
• Worldwide – 92.028

Latest and Best Collection of H&M

• Joggers
• Boyfriend Fit Jeans of 90s
• Cotton briefs
• Mini Skirt
• Denier Tights
• Fine knit cotton cardigan
• Patterened Dress
• Printed pyjamas
• Long sleeve jersey
• Cigarette trousers
• T-shirts

The Ansoff matrix of H&M would focus on the four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification. Here’s the H&M Ansoff matrix company example as follows;

Ansoff Matrix of H&M

Let’s discuss the four growth matrix strategy analysis quadrants of the Ansoff matrix of H&M as the Ansoff matrix company example; they’re as follows;

Market Penetration Strategy of H&M

The market penetration quadrant in the H&M Ansoff matrix business example as a growth matrix strategy has the lowest risk in the growth strategy. It is because here the fast-fashion brand sells its current products and services in the existing customer market. However, the fast-fashion market is growing, and the market penetration growth strategy is possible.

I-Discount Offers

H&M offers various types of discount offers like “buy one, get one free,” bundle offers, and limited time offers. It allows the company to increase the sales in the particular season and get rid of the old inventory; penetrating the existing customer market with the same offer.

II-Design Promotion

In order to attract the attention of customers, H&M promotes its existing product designs and styles in various types of fashion magazines and other media channels. It helps the company to penetrate the existing market with the same retail clothing portfolio.

III-Acquisition

H&M always looks for new opportunities and acquires new small retailers in the market to reduce the competition. As a result, it helps the company to amplify its market share with limited competition.

IV-Advertisement Spending

Usually, H&M has a very large marketing and advertisement budget and the company launched pushed marketing campaigns. Small retail stores don’t have resources for heavy market and advertisement, and it helps the company to amplify its sales.

V-New Retail Outlet

The objective of H&M is to open up new retail stores and outlets in crowded location points. It allows the company to further penetrate the market and sell its current products to the existing market.

Market Development Strategy of H&M

The market development quadrant in the H&M Ansoff matrix business example as the growth matrix strategy has a bit higher risk than the market penetration strategy. It is because here you expand your fast-fashion market and offer your current product portfolio in the new market. However, you don’t know the culture and response of the new market; that’s what makes it riskier.

I-Market Expansion

H&M is already operating its business in various countries across the world. However, there is room for growth in entering new geographical regions and targeting new segments of the customer’s market. However, it building new retail outlets in new markets, marketing, and brand awareness campaigns, and fashion clothes promotion.

II-Distribution Channels

In order to complete its objective of market expansion; H&M employs new distribution channels to deliver its fashion clothing products in the new market. It establishes the ground for launching new retail stores in the new market based on the growth from the distribution channel.

III-Different Pricing Strategy

The per-capita income of different countries is different; that’s why H&M implements different pricing strategies in different markets based on the customer’s affordable. It comprises low-cost fashion clothing to premium fashion clothes depending on the target customer market and their social status.

Product Development Strategy of H&M

The product development quadrant in the H&M Ansoff matrix business example as the growth matrix strategy has a higher risk than the market penetration strategy. It is because here you launch a new product service in the fashion line for the existing customer market. You would have to run new marketing and promotional campaigns for the new product and it makes it riskier.

I-New Fashion Designs

H&M invests a significant amount of capital resources in its in-house creative designer department team for the development of new fashion designs. It could be in the form of new fashion designs and styles, unique color combinations, or clothing types. While introducing the new fashion design, the company needs to launch mass-scale marketing and brand awareness campaigns.

II-Customer Feedback

H&M pays a lot of attention to customer feedback, reviews, comments, and suggestions. While developing a new fashion design or product, the retail fashion clothing company keeps in mind the customer feedback and develops new and improved products for customers.

Diversification Strategy of H&M

The diversification quadrant in the H&M Ansoff matrix business example as a growth matrix strategy has the highest risk growth strategy than all three previous growth strategies. It is because here you launch a new retail fashion clothing product or service in a new customer market. You won’t know how your new market will react to the new items.

I-Horizontal Diversification

H&M has successfully survived various fashion eras decade after decade by evolving over time and keeping up with the prevailing fashion trends. The retail fashion clothing brand plans to do the same in the upcoming years by developing new designs and styles relevant to the demands, interests, and requirements of the customer market.

Conclusion: H&M Ansoff Matrix Company Example | Ansoff Growth Matrix Strategy Analysis 

After an in-depth study of the Ansoff matrix of H&M; we have realized that H&M is the world’s leading retail fashionable clothing brand. If you are learning about the H&M Ansoff matrix company example; then you should keep in mind the abovementioned growth matrix strategy quadrants; market penetration, market development, product development, and diversification.