ABOUT THE BRAND

H&M
 H&M’s vision is to lead the change towards a circular and renewable fashion industry while
being a fair and equal company.
 H&M pursues the strategy focused on the long-term view which combined with the
distinctive business model ‘high fashion at low prices’ provides the company with a sustained
position in the apparel market.

UNIQLO
 Uniqlo is an apparel brand that is a wholly owned subsidiary of Fast Retailing Co. Ltd.
 UNIQLO has adopted a sustainability mission statement, "Unlocking the Power of Clothing".

AMERICAN EAGLE OUTFITTERS

 American Eagle Outfitters was founded in 1977 and is a leading specialty retailer of
casualwear for a young demographic.
 AMERICAN EAGLE OUTFITTERS, INC. is committed to investing in and giving back to the
communities that contribute to their success.
EPRG FRAMEWORK
 H&M

1947-1965: Operated By-passed

in Sweden

ETHNOCENTRIC POLYCENTRIC

REGIONOCENTRIC GEOCENTRIC

After 2001, it
Expansion strengthened its
throughout Europe global foothold in
(1964-1999) and Europe, North
North America America, Middle
(2000-2001) East, North Africa
and Asia Pacific
 AMERICAN
EAGLE

They opened
opened nearly 933 their first store
stores in United in Canada in
States between 1977- 2001.
2001

ETHNOCENTRIC POLYCENTRIC

REGIONOCENTRIC GEOCENTRIC

In the year 2010 & 2010 Onwards:

2011, AEO focused Russia, Japan,
entirely on the Israel, China, Hong
middle – east Kong, Philippines,
markets. India.
 UNIQ
LO

Entered into
Operated only in London in
Japan till 2001 2001 and
Shanghai in
2002
ETHNOCENTRIC POLYCENTRIC

REGIONOCENTRIC GEOCENTRIC

2005 Onwards:
By-passed
expanded into the
USA, Hong Kong
and Korea
SEGMENTATION , TARGETTING AND
POSISTIONING
 SEGMENTATION
H&M AMERICAN EAGLE UNIQLO
1.Segments by class- working Market Segmentation- teens and 1. Urban and suburban categories
class, lower middle class, early 20s
students

2.Segments by home- staying Geographic segmentation- stores 2. All age categories and both
place in urban areas within malls or genders
busy outdoor shopping areas

3.Segments by age- 15 to 30 Demographic segmentation- to

years teens and young adults ages 15-
25. more focus on women

4.Segments by family life- Psychographic segmentation- the

relation status ‘cool’ factor

Behavioural segmentation
 TARGETTING
 H&M
 The group of fashionable and trendy consumers who see shopping as a social activity provide
pleasure in their daily life, who wants to follow the trends without investing a lot of money.
 The target market for H&M is for younger people
 They sell clothes and accessories for all the age groups but their target customers are women as
they shop for themselves as well as their children

 AMERICAN EAGLE
 The age of the target market lies between 15 to 25.
 It targets middle to upper class people.
 Its customers are mainly high schools and college going students who like wearing trendy
clothes.

UNIQLO
 Uniqlo apparels are not only limited to higher income people.
 The main target market Uniqlo is the male and female adults that are ranging from the age 18
to 40 and are looking for affordable and high-quality clothing that fits their lifestyles.
 POSITIONING
 H&M
 To provide consumers with fashionable, high-quality Clothing at the best price possible.
 They offer “fast fashion” clothing, in other words from runway to racks in record time.
 H&M is also economically, socially, and environmentally sustainable.

 AMERICAN EAGLE
 AEO has adopted a quality based positioning. It focuses on the quality of the product and keeps
simplified designs.
 AE has taken a very real approach to their marketing and embraced the current rise of self-love,
choosing a more inclusive feel.
 The brand is rooted in authenticity and self-expression.

 UNIQLO
 Positioned itself as a modern Japanese company that inspires the world to dress casual.
 The brand philosophy is “Made for All”
 Contrary to its name “Uniqlo”, its clothes are simple, essential yet universal, enabling the wearers
to blend them with their individualistic style.
 PRODUCT:
H&M UNIQLO AEO

• Includes Menswear, • Technology based products • The product offerings are

womenswear and • Includes Outerwear, Bottom casual clothing and practical
kidswear Collection, Sweaters, Fleece, for customers to use.
• H&M: The range includes Casual Shirts, T-Shirts • Includes shirt , pant , joggers,
everything from designer Sportswear, Lingerie sweater, graphic T-shirts,
collaborations to ,Accessories and Shoes for fleece, outwears, Jeans and
everyday basics and yoga Men and Women accessories.
wear. • Also includes kidswear and • Its sub brands are Aerie ( For
• Collections : & Other babywear. lingerie, personal care
Stories: Shoes, bags, • Collections : Linen products and sleepwear) ,
accessories, beauty, Collection , HeatTech, UV Tailgate(Sportswear).
ready to wear protection, wear to work, • Better curvaceous options
• Cheap LifeWear and AIRism. • Wide and deep assortment
Monday:(connected with • SUSTAINABLE DENIMS: • Sustainable swimsuit from
music and pop culture) Reduced chemicals, water recycled plastic.
• Monki and Weekday: On- and waste. • Sustainable denim collection.
trend lifestyle collections • Narrow and deep
for young women. • Fits everyone
• Wide and deep
• Better petite-size inventory
 PRICE
H&M UNIQLO AEO

• H&M offers high • It follows a competitive • American Eagle

quality clothes at a pricing. Outfitters follows is a
premium price. • It provides unique competitive based
• H&M products are simple designs and pricing strategy .
prices relatively lower bright colours. • Products are sold at a
due to lower cost of • They sale selected higher price than
manufacturing and products at competitors as it offers
transportation costs promotional prices more features
• High quality and which are generally $5- • Bundle pricing and an
considerably lower $10 less compared to optional product
prices attract the youth the retail prices. pricing strategy for
• Charge shipping prices • It also provide free certain products.
separately . shipping on all orders. • More price for the
products it sells online,
as they include delivery
price .
 PLACE
H&M UNIQLO AEO

• Exclusive stores located in major • Stand alone large format stores urban , • Located in shopping malls,
cities(city centers and malls across the suburban places lifestyle centres and street
globe ) • In Asia, it is the biggest apparel chain locations
• Follows an Omni-channel strategy ; with close to 800-900 stores. • 1050 stores in total, more than
sells in both online channels and • There are nearly 900 Uniqlos in Japan. 800 stores in US ,online presence
physical stores • The company currently operates 1920 in 81 countries
• 4968 stores & online presence in 35 stores throughout the world. • Intensive marketing strategy;
countries • UNIQLO does not own any factories. It include its products on as many
• Product distribution channel : Direct outsource all production to partner retailers as possible to increase
purchase of raw materials from the factories in China and other countries. availability
suppliers • Some of the countries of operation are • Omni-channel distribution; both
• The finished items sold directly to the Australia, Canada, China, France, online and offline stores.
retail outlets. Germany, Hong Kong, Macau, • American Eagle Outfitters has a
• Cheap Monday is sold through Indonesia, Japan, Korea, Malaysia, network of over 500 suppliers that
selected retailers worldwide and Philippines, Russia, Singapore, Spain, provide it with the raw materials
through standalone stores including its Taiwan, Thailand, UK etc. needed for production.
flagship store in London. • USA, Canada, Mexico, China, and
• Countries of operation : US, Hong Kong, India
Germany , UK, France , Polland ,
Spain , Russia, India
PROMOTION
H&M AEO
UNIQLO
• Multi-channel promotional • Include advertising using TV
• Multiple media channels; an ads on
• TV advertisements: Creative ads commercial, advertising on mobile
television and radio, periodic SMS.
which focus on its latest phones, and using social media partners
• CELEBRITY BRAND for promotion of brand.
innovative designs; ENDORSEMENTS: Uniqlo
• YouTube: Unique ad campaigns to • Personalisation of jeans:
currently has 6 Global Ambassadors:
engage with the customers. • In –store concept: some store have a
• Ayumu Hirano, Roger Federer, Kei
• Digital Marketing: Excessive study area and washing machines
Nishikori, Shingo Kunieda, Gordon
search engine marketing and Reid, Adam Scott • BLACK FRIDAY SALES: AEO offers a
social media marketing blanket discount; prices are not revealed.
• Hire people with disability to show
• Promo codes and discounts; resilience • CAMPAIGNS –Focus on Individuality.
offered during the end of season Freedom and Self Expression
• Uniqlo offers free in-
sale store tailoring for any pair of jeans • Ride with Pride" campaign: engages
• PR: Parineeti Chopra opened the activists from the LGBTQ community.
• Made the uniforms for Japan's
first H&M outlet in India Olympic team • Introduced #AExME , pledge features
• It has tie up with many clothing only real customers #aerieREAL, an
• issues a scholarship to 10 Japanese
designers throughout the world to Aerie campaign focused on girl power,
graduate students every year, which
make latest trends in fashion, body positivity and empowering women
covers the full cost of attending the
• Collaborations with pop stars and Fashion Institute of Technology • Popular brand ambassadors : Emma
sport stars Roberts , Shay Mitchel
 PEOPLE
H&M UNIQLO AEO

• H&M: • Employees greatly encouraged • American Eagle Outfitters

• The employees at H&M are to provide suggestions. have people trained in
trained well at every level. • Company financials are persuasive techniques, but also
• The work culture is very completely transparent to to show respect to the business
modern and employees are on employees and sales and customers.
a rotation basis at every charted and posted daily. • It has people working in its
department • The brand also places a huge customer service department
• Motivated to innovate and emphasis on its retail store to guide customers through
come up with the best experience and manages every the process of getting the
clothing wear. customer touch point. issues resolved.
• Employees come from diverse • Each new employee is trained • It has people working with
backgrounds having special for a remarkable 3 months suppliers to obtain raw
skills. • Currently building a Uniqlo materials; play a vital role in
University in Tokyo in which maintaining or improving the
1,500 new store managers will quality of the final product
be trained every year. produced.
PROCESS
H&M UNIQLO AEO

• Voice-Activated Mirrors. • Auto replenishment method : • Slyce: shoppers can point their
H&M installed voice-activated systems which can notify smartphone cameras at real-
mirrors in ; facial recognition, retailers when their inventory world items to find similar
as well as the ability to provide levels are low. products in its inventory
style advice • This ensures that products are • Dressing room Technology: look
always available to customers up product information, request
• H&M Home Stylist. Offer when needed. additional sizes
style recommendations and • UNIQLO has an online delivery • Salespeople are equipped with
create mood boards to give process. point of sale device so the the
users room design inspiration. • It is actively involved in customers can check out in the
researching market dressing room itself.
• AR Holograms. Creates opportunities in order to
high-definition holograms that understand customer needs. • Omni-channel Concept :
let users explore clothes in • Collects feedback at store along Reserve Try N Buy
greater detail. with helpline or social media • Sales associates receive
pages. notifications via mobile when a
product is requested and can
indicate when it has been
fulfilled.
PHYSICAL EVIDENCE
H&M UNIQLO AEO

• H&M stores are appropriately • UNIQLO sells its products in a • Packaging :Provides fit
satisfying with great ambience and distinct colour packaging that information, labels and signage.
humble staff. easily identifiable on retail shelves. • Online website that is user-
• The apparel is arranged to have a • These are placed on special shelves friendly and allows customers to
decent look which appeals to the provided by the company, which view its products in high quality
customers. also have a distinct colour and images taken from various angles.
• Overall it gives a messy look design. • STORE LAYOUT: It has wide
• STORE LAYOUT : • This makes it easier for customers aisles, bright lights, neatly stacked
• Brick and Mortar :Free Flow to locate such shelves in busy retail shelves and beautifully presented.
Layout, Easy to find clothes stores. • It has spacious lounge, with tables
• Online Store : Shows many outfits • STORE LAYOUT and sitting areas.
and different categories • wide aisles, bright lights, neatly • They have iPad in the dressing
• Used relatively used warm colors, stacked shelves and beautifully room which let shoppers call an
play modern songs. presented displays creating a attendant
comfortable and welcoming • Point of sale device so the
shopping experience, customers can check out in the
dressing room itself.
• Laundry section and spot
alteration facilities are also
available .
BEST STRATERGIES
 BEST STRATEGIES
 H&M:
 SUSTAINABILITY STRATEGY ANALYSIS
1. PROVIDE FASHION FOR CONSCIOUS CUSTOMERS
• Innovation in materials and processes-
I. To maximize utilization of recycled textiles.
II. & minimize the consumption of new resources .
• Launch of The conscious collection- to spread the idea of
sustainability among its target customers.
• Initiative of collecting used clothes back to the supply chain.
2. CHOOSE AND REWARD RESPONSIBLE PARTNERS
 It promote Fair Living Wage- enable the workers to cover the basic needs,&
other necessary expenses.
3. BE CLIMATE SMART
 Use electricity that is produced with renewable resources to emit
greenhouse gas.
 initiated a range of campaigns to involve its suppliers to contribute to
greener practices.
4. REDUCE, REUSE, RECYCLE
 Teamed up with I:Collect (I:Co)- to collect unwanted clothes .
 These recycled clothes will be either be reused or be incorporated
in the production.
5. Mobile marketing campaign-to promote the latest
collection through sms.
6. To increase sale– used celebrities such as Karl
Lagerfeld, Roberto Cavalli,, and Jimmy Choo to help
increase sales.
7. The specific collection designed by Designers Against
AIDS-Nearly25% of the sales from this collection
went to HIV/AIDS prevention projects.
AMERICAN EAGLE:
1. Introducing denim hijab part of its wardrobe
offerings- featured Muslim model Halima Aden
wearing a hijab.
2. Adopted fast-track fashion.
3. INVENTORY MANAGEMENT STRATEGY- it
stocks very little and updates its collections
frequently.
 UNIQLO

1. ADOPTED SPA MODEL OF BUSINESS-

 They deliberately makes non-trendy clothes on purpose.
 Rely on cheaper products in order to make their customers feel as if they are
saving money.
 They create the illusion of a wide choice.
 In summer, they sell winter clothes, and vice versa in winter-attracts advance
customers.
 They offer technology instead of fashion to make their customers feel smart.
 CHANGE IN STRATEGIES
H&M
 Focused initially on 1st and 2nd tier cities but expanded into 3rd and 4th tier
cities.
 Entered china after China's WTO accession.
 Social media presence.
AMERICAN EAGLE
 Strengthened its core product category with more innovation- distinct
finishes, fabrics and washes.
 Simplified its designing system-to respond to changing customer tastes
quickly.
 Reorganized the structure to implement direct accountability and enhanced
its speed sourcing capabilities.
UNIQLO
 Brand perception instantly shifted- From being cheap and low-quality, to
being affordable but high-quality
 It got changed when the brand opened a 3-storey store in iconic Harajuku in
central Tokyo in 1998
 People started noticing Uniqlo for its high-quality fleece jackets.
FAILED STRATERGIES
H&M
 H&M Scandal- "Coolest Monkey in the Jungle" advertisement.
 Company was criticized for showing a serious lack of social awareness
and racial sensitivity.
 MALL STRATEGY FAIL- With some 536 U.S. stores, I† faces off
with against the other failing mall-based fashion retailers.
AMERICAN EAGLE
 Brand Failure in UK- No unique thing to offer
& its price was comparatively higher for UK
customers.
 It was positioned as premium brand in UK .
 Failure of two sub brands: martin+osa and 77
kids .
UNIQLO
 Accusations that it mocks South Korean
victims of forced labor during WWII- A
parody featuring a 90-year-old former laborer
has gone viral.
 Uniqlo price strategy failed-lost some of its
budget-minded customers in Japan after
raising prices last year.
 BRAND CRITICISM

H&M
 Slash and burn practice.
 SLOW TO SELL ONLINE- It only started selling online in 2010, a decade
after ASOS appeared.
 USER EXPERIENCE NEEDS SOME IMPROVEMENT
I. The navigation is sometimes confusing.
II. Information on product pages can be relatively sparse.
III. Customers have to add items to their basket before finding out costs and
options.
 DELIVERY COSTS
I. It charges £3.99 for standard delivery, which is more than some
competitors.
II. It delivery offering lacks appeal for free delivery and returns.
UNIQLO
 Unethical practices against employees- overtime,low wage, hazardous
working condition etc.
 Unwilling to change its clothes size for north American market.
 Lack of store-opening in second and third tier countries.
AMERICAN EAGLE
 Basic merchandise with persistence logo business production.
 It could not meet the changing consumer needs and behavior.
 The retailer’s comparable store sales declined by 6%
 Terminated its licensing agreements in China and Hong Kong.
SWOT Analysis
 STRENGTHS

H&M UNIQLO AMERICAN EAGLE

H&M are the one of the largest Uniqlo is Japan's leading clothing American Eagle Outfitters has
global clothing retailer retail chain in terms of both sales continuously grown and has been
and profits. appreciated since 1977.

The store offers quality and Offer very discounted prices American Eagle brands include
trendy clothing at affordable which increase footfall in store subsidiaries aerie, Martin + Osa
price. and 77kids

Their overall delivery time is Uniqlo had begun outsourcing American Eagle Outfitters has
very low, it takes only 12 weeks their clothing manufacturing to strong sales and revenue,
for their products to come from factories in China where labor especially in the United States
the design stage to the retailer was cheap, a well-established
phase. corporate practice
 WEAKNESS

H&M UNIQLO AMERICAN EAGLE

OUTFITTERS
Buying large volumes could Despite being a popular brand Limited market share &
lead to overstocking and later it has a limited brand recall advertising as compared to
on lead to lowering of the some other global brands
already affordable prices

H&M have put in a lot of Bargaining power of American Eagle Outfitters has
capital and maintenance fee customers is high hence brand limited global presence as
for all the different types of switching affects value compared to bigger popular
machines required to produce clothing brands
clothes for each target
segment
 OPPORTUNITIES

H&M UNIQLO AMERICAN EAGLE

OUTFITTERS
Online shopping is gaining a Good brand image could Global expansion of
lot of importance which can leverage on that and increase American Eagle brand
be tapped by H&M. product portfolio along with through opening more
clothing stores.
Emerging economies will The brand can promote itself The brand can increase its
support H & M’s expansion by viral advertising and business by tapping the
plans aggressive social media usage online market and using
ecommerce
H&M are well positioned to High opportunity in Making contemporary
tap the niche organic apparel campaign in various sports fashion clothing to capture
market events the youth with trendy
designs
 THREATS

H&M UNIQLO AMERICAN EAGLE

OUTFITTERS
Weak competitive situation Increasing competition from Similar designs available in
as the prominence of value domestic market and global other brands hence
retailers and premium players switching cost is less.
luxury brands increases

H&M newest business line Strategic cost leadership is Local market poses a risk.
home-ware has not been not long term sustainable.
able to click in Europe and
hence is leading to lowering
sales
Unemployment is also Regulation in different International operations of
continuously pressurizing countries for FDI pull on American Eagle can be
their target segment to aggressive growth. affected by recession,
discretionary spending economic slowdown etc..
 POLICIES
H&M
 PRODUCTS & MATERIALS POLICIES:
 H&m Sustainability Commitment requires all relevant suppliers to follow their animal welfare and
material ethics requirements.
 H&M group’s Chemical Restrictions List bans and/or limits any chemicals that are considered
hazardous.
 POLICIES FOR BUSINESS PARTNERS:
 Two of most crucial policies are Code of Ethics and our Sustainability Commitment
 GLOBAL SECURITY POLICY:
 2017 goal for the global store audit - which consists of safety, loss prevention and information
security – is 85% compliance.
 TAX POLICY:
 H&M group works in accordance with the tax laws and regulations set by each and every country that
our business operates in.
 HUMAN RIGHTS POLICY:
 human rights due diligence is conducted systematically as an integral part of all relevant assessment
processes including, for example, risk management processes, business partner due diligence,
stakeholder engagement, grievance handling and all internal training.
 UNIQLO

 QUALITY AND SAFETY POLICIES:

 Comprehensive Quality and Safety Management
 Third-Party Quality and Safety Inspections

 HUMAN RIGHTS POLICIES

 Human Rights workshops
 Respecting employees
 Respecting diversity

 ENVIRONMENTAL POLICIES:
 Energy and resources efficiency at stores
 Reduced way of packaging
 All product recycling
AMERICAN EAGLE
 HUMAN RIGHTS POLICIES
 committed to fostering a diverse, multicultural work environment where our employees
respect one another.
 provides equal employment to all participants and employees without regard to race, color,
religion, gender, national origin, age, disability, sexual orientation, veteran or marital
status.