Direct Selling

How they do it: H&M’s products are exclusively distributed through its chain of retail stores, catalogues and online store. This allows the company to have full control over their value chain and profit from earning the full retail margin.

E-commerce

How they do it: Next to its physical stores, the company offers a holistic variety of its products in its online store allowing customers to directly order from and to their homes. As the offering in its physical stores and its online store is the same, customers can also use the online store to shop products in sizes that are sold out in the physical store.

No Frills

How they do it: H&M’s store design is simple and standardized across all stores. Clothes are placed on simple racks and shelves. Staff is present, however not meant to assist the customers in their purchasing experience but rather to refill racks and shelves.

Supermarket

How they do it: H&M not only sells clothes but also expanded in the areas of accesories and shoes. Its clothes’ offering ranges from formal to leisure. Hence, H&M has a holistic offering, allowing customers to purchase whole outfits at one store.

Target The Poor

How they do it: H&M offers all its products at really low prices. This also includes e.g. formal and business wear, allowing to target a large group of customers with a low purchasing power for clothing.