How did a small women’s clothing store in Sweden transform into a global retail giant? It all began with Hennes, founded in 1947 by Erling Persson. This initial store, specializing exclusively in women’s clothing, soon laid the foundation for a brand that would capture the attention of shoppers worldwide. By 1952, Hennes had expanded to Stockholm, entering a phase of rapid growth.
Within just a few years, the store expanded swiftly. In 1954, Hennes caught the retail industry’s attention by publishing a full-page color advertisement in one of Sweden’s largest daily newspapers. This marketing strategy demonstrated not only the brand’s commitment to women’s fashion but also its ambition for large-scale growth.
Expansion and rebranding
By the late 1960s, H&M underwent significant changes in the retail sector. It expanded its sphere of influence and reshaped its market identity. The 1968 acquisition of Mauritz Widforss played a pivotal role in this transformation, resulting in the brand’s rebranding as Hennes & Mauritz (H&M) and diversifying its product range. Notably, the addition of men’s clothing served to broaden the company’s audience reach. By 1969, H&M boasted 42 stores and began its international expansion process by opening its first foreign branch in Norway. This laid the groundwork for the company’s global growth.
The brand strategy’s further development continued with the introduction of the underwear line in 1973. As part of this initiative, Anni-Frid Lyngstad, a member of the famous Swedish pop group ABBA, was enlisted as a model, significantly enhancing H&M’s brand appeal. The company’s listing on the Stockholm Stock Exchange in 1974 further solidified its corporate standing and increased its credibility in the retail market.
By 1977, H&M continued to diversify its business model, launching the Impulse concept. This new format specifically targeted the teenage audience, serving to increase the brand’s popularity among the younger generation. Simultaneously, the company entered the cosmetics market, expanding its product portfolio. These strategic decisions laid the foundation for H&M’s establishment as a leading brand with an innovative approach in retail and set the stage for its future growth.
Global expansion
The rapid growth observed in the 1980s and 1990s transformed H&M into a major global retail brand. When Stefan Persson became CEO in 1982, he introduced transformational initiatives that shaped the company’s long-term development strategy.
In 1980, H&M acquired Rowells, successfully entering the mail-order fashion retail market. This allowed the company to extend beyond brick-and-mortar stores and present its products to a wider audience.
Throughout the 1990s, H&M collaborated with supermodel Elle Macpherson for their annual underwear campaigns. This marketing strategy significantly increased brand visibility and forged strong connections with fashion enthusiasts. Concurrently, H&M successfully entered four new European markets, taking a significant step towards becoming a leading global fashion retail chain.
Innovation and sustainability
By the late 1990s, H&M began prioritizing strategies focused on innovation and sustainability for the new millennium. In 2000, the company opened a flagship store on Fifth Avenue in New York, demonstrating H&M’s bold entry into the US market and its aspiration to become a key player in the global fashion industry.
In 2002, H&M published its first Corporate Social Responsibility (CSR) report, underscoring its commitment to sustainability and ethical practices. In 2004, the brand, in collaboration with Karl Lagerfeld, blurred the boundaries between high fashion and mass fashion, initiating a new trend of partnerships with influential designers.
H&M significantly increased its revenue through an online platform launched in 1998, with online sales revenue growing by 126 percent by 2019. In 2010, the company launched its first collection made from sustainable materials and introduced a program for collecting old clothes. This was an important initiative aimed at reducing environmental impact.
These initiatives demonstrated the company’s efforts to harmonize profit with social responsibility.
Recent developments
In a rapidly changing retail environment, H&M has implemented a number of strategic initiatives focused on sustainability and innovation since 2020. In 2020, there was a change in leadership, with Karl-Johan Persson becoming the company chairman, and Helena Helmersson taking the position of CEO. From this period, H&M set climate goals for 2030 and 2040, aiming to significantly reduce its environmental impact.
In 2022, the company expanded its product range by launching the H&M Move sportswear brand, which demonstrated its market adaptation strategy. The establishment of Looper Textile Co. in 2023 was a significant step in strengthening H&M’s commitment to textile waste recycling and sustainability. This joint venture is aimed at developing a system for waste reduction and recycling.
Furthermore, H&M continues to expand its operations globally. Today, the company operates in more than 75 markets and offers online sales in nearly 60 countries.
Partnerships and marketing strategies
Numerous successful collaborations and innovative marketing strategies have brought H&M to the center of the fast fashion industry, showcasing its ability to make high fashion accessible to the masses. The brand created exclusive collections in partnership with Karl Lagerfeld in 2004 and Alexander Wang in 2014. These collaborations not only enhanced H&M’s brand position but also served to attract fashion-conscious customers with modern and affordable clothing.
H&M’s marketing campaigns are also distinguished by their significant impact. In 2016, a holiday season commercial photographed by Wes Anderson captured viewers’ attention, while supermodel Naomi Campbell’s participation in the 2017 autumn “empowerment” campaign resonated strongly with consumer values. Such initiatives have strengthened the brand’s influence on the mass market, allowing it to appeal to different demographic groups and solidify H&M’s position in the competitive fashion business.
Additionally, the annual lingerie campaigns, which began in 1990 with supermodel Elle Macpherson, marked a crucial turning point in H&M’s marketing approach. This strategy helped to create a recognizable and desirable image for the brand.
Prepared by Zukhrakhon Mansurova
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