Hello my dear readers! Have been missing me?:) Ok, here I am, Emily. And today I am going to tell you about why customers want to buy me, an H&M T-Shirt, so much!H&M’s target customers are youths and young adults of both sexes who belong to the group of fashionable and trendy consumers who see shopping as a social activity providing pleasure in their daily life. They acquire the most fashionable clothes each season and want to follow the trends without investing a lot of money. In order to fulfill the needs of the customers, H&M launched EDLP (Every Day Low Prices) products. By adopting this strategy, H&M teaches fashion buyers not to wait for department-store sales but rather buy H&M low-price brand-name products.
In fact, to maintain the low price policy, H&M has to give up the customer service. Fitting and cashier usually have long queues. Sales staff is relatively less as compared to the number of customers. It is not easy to get help when you have encountered problems or issues.
Picture:http://www1.pictures.zimbio.com/gi/TEEN+VOGUE+Fashion+University+H+Shopping+Party+_s7rfT0Jr0bl.jpg
The company slots its customers into two distinct categories – practical consumers and fashionable and trendy consumers and caters to requirements of each group separately. Keeping this basic difference of these two groups in mind, H&M stocks its stores with clothes of distinct categories so that not one member of either group return unsatisfied.
Consumers do not consider H&M as the ultimate in luxurious clothing. They consider it to be a convenient outlet where you could grab a decent looking (it really does not matter whether every other person in the town is wearing something that is an exact replica or very near to it) outfit at a really affordable price.
Despite
the fact that consumers identify H&M as a trendy clothing brand for various
everyday usages, they do not feel committed to the brand. In other words, when
it comes to everyday affordable and trendy clothing, H&M is one of the
preferred brands in the consumer’s consideration set but it does not go beyond
the product’s practical benefits. There is no emotional attachment to the brand
nor a sense of community. When looking for a T-shirt, customers will surely drop
in at Gap or Primark and if they get something that they were looking for at an
acceptable price, they would not hesitate to purchase it.
H&M customers
can be divided into following categories:
- Customers who love to shop but are not compulsive shoppers and would like to spend time in other activities also. This group would not hesitate in buying if they are able to locate products that are fashionable, cheap and, most importantly, conveniently located for quick purchase.
- Customers who love variety, a lot of collections and almost always buy accessories along with dresses and lay more emphasis on fashion and style while making a purchase.
- Customers who are on the lookout for trendy styles and attractive designs. H&M has some products which are cheaper and some with higher prices. Good quality of fabric and fit and finish is a must for this group of customers and they simply do not mind to pay a little extra for that perfect cut and fit. In addition, H&M constantly invites the top fashion designers in the industry such as Karl Legerfeld to be their partners for designing the new collections and that collections have really high prices.
- Customers who are on the lookout for bargains and all that they are concerned with is price, discounts and sales. The best way to attract and retain this group is to provide special offers that promise to provide more than what the customer pays for.
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The
common determinants that would motivate all these four categories to enter an
H&M store and buy its products are:
- A well thought out and innovatively planned layout of the store that would allow customers to get a clear idea of the different varieties that are on offer and related prices without becoming too much dependent on store assistants.
- Regular stream of offers and discounts that would wean customers away from competitors.
- Conveniently located stores that can be easily accessible.
Picture: http://www1.pictures.zimbio.com/gi/TEEN+VOGUE+Fashion+University+H+Shopping+Party+GDzLOSeSXffl.jpg
Hope you liked my article! See you soon, have a good time and do some shopping ;)
Yours sincerely,
Emily
Sources:
http://heroinandmoss.blogspot.fr/p/product-strategy.html
http://niranjanchatterjee.wordpress.com/2009/05/01/hm-a-study-of-the-company-and-its-marketing-techniques/
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