Porter's Five Forces
Tradicional Competitors
Intense competition in the clothing and apparel market is driven by significant marketing expenditures. Established brands invest millions in advertising, celebrity support and sales promotions, among others.
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The clothing market is characterised by a large number of firms and brands, resulting in significant competition. Additionally, the growth rate in the clothing and apparel industry remains low due to market saturation. Low consumer loyalty in the market.
New Market Entrants
H&M faces a low to moderate threat from new entrants in the clothing market. While entry is easy due to global suppliers, brand awareness is harder to achieve. H&M counters this with strong marketing and innovation, as seen with the disruptive rise of Shein (Garcia, 2022).
Treat of Sustitudes
The threat of substitutes for H&M is moderate. Customers value its affordable, trendy clothing, which helps maintain loyalty. However, the demand for fashionable attire has decreased due to online communication and remote work, reducing the need for stylish clothing. (MBA Skool Team, 2022).
Buyers
The bargaining power of buyers in the clothing market is high due to the many available brands. H&M offers affordable, fashion-forward options, but other fast-fashion companies also provide similar products, maintaining strong consumer power (Garcia, 2022).
Suppliers
H&M's strength is its vast network of over 600 global suppliers, which have low bargaining power due to their reliance on large companies. This abundance allows suppliers to benefit from partnerships with well-established brands ((H&M Group, 2023).