Everyone is familiar with the iconic H&M signboard, visible from afar in Times Square, along Champs Elysees, and in every major shopping mall around the world.
H&M has become the world’s go-to place for a quick shopping fix, with affordable and sustainable clothing available to all.
How did H&M achieve such substantial success in recent years?
1. Established itself as the go-to place for cheap, fast fashion
H&M’s business concept is clear, simple and unpretentious -- “fashion and quality at the best price”. H&M produces clothing for men and women and children that is informed by the latest trends in fashion and style.
H&M sells everything you would need -- classic basic pieces, swimwear, elegant clothing for a prom night with accessories and shoes to match, even lingerie and sportswear -- at affordable prices.
Models with different looks, styles, cultural and ethnic backgrounds are regularly featured, to show customers that the brand focuses on all-inclusivity. For example, in their 2015 campaign called “Close the Loop", their main star was Mariah Idrissi, a 23-year-old Londoner, who donned a hijab for the video - the first for H&M.
Before the launch of each capsule collection, H&M generates hype through celebrity-endorsed campaigns and advertisements, that pop up on everyone’s social media feed.
This keeps all eyes on the campaign, making sure that tons of WOM is generated even before the launch.
Word-of-mouth tip:Designer collaborations have been a big hit in the fashion world. The Adidas x Kanye West Yeezy Boosts will be stranger to none. Designer collaborations ride off the incredible hype of celebrity endorsement, and generally become a commercial success.
Recap: What were the factors that contributed to H&M's success?
Clear goal for their product, and sticking to their bottom line
Making sure their advertising takes into account cultural contexts and is inclusive
Focusing on good causes like sustainability
Unique collaborations to bring luxury to the masses
A referral program is a deliberate, systematic way of getting people to make referrals to your business. Referral programs are often called word-of-mouth marketing, because they reward existing customers for sharing and incentivize new customers to try out your brand.